Asian stocks and Wall Street futures rose on Thursday after a U.S. federal court blocked the implementation of President Donald Trump’s “Liberation Day” tariffs, triggering a rally in the U.S. dollar against safe-haven currencies.
اضافة اعلان
The U.S. Court of International Trade, a little-known Manhattan-based court, ruled that Trump exceeded his authority when he imposed sweeping tariffs on imports from U.S. trade partners on April 2.
The White House quickly appealed the decision and may escalate the case to the Supreme Court if necessary. In the meantime, the ruling sparked hopes that Trump might back down from the steepest tariff threats.
Kyle Rodda, senior financial analyst at Capital.com, said, “It’s long been argued that the emergency powers Trump used to impose tariffs are unconstitutional, and that the authority to impose tariffs rests with Congress. If things go as markets hope, the courts could delay and ultimately strike down these tariffs, removing a major risk and encouraging risk appetite.”
This could also prompt U.S. trade partners to hold off on entering new trade negotiations with the White House, opting instead to wait for the case's resolution.
However, analysts at Goldman Sachs pointed out that the ruling does not block sector-specific tariffs and that Trump still has legal avenues to impose broad or country-specific tariffs.
In a note, analyst Alec Phillips wrote: “This ruling is a setback for the administration’s trade plans and increases uncertainty, but it may not significantly alter the outcome for most of the U.S.’s major trading partners.”
Market Reaction
Investors responded by embracing equities. Japan’s Nikkei index rose 1.7%, while South Korean stocks climbed 1.8% to a nine-month high.
The MSCI broadest index of Asia-Pacific shares outside Japan advanced 0.5%, and China’s blue-chip stocks gained 0.6%.
The ripple effects extended globally, with EUROSTOXX 50 futures up 1.3%, FTSE futures gaining 0.8%, and German DAX futures rising 1.1%.
Relief from Nvidia Earnings
S&P 500 futures rose 1.6%, while Nasdaq futures jumped 2.0%, partly supported by stronger-than-expected earnings from Nvidia. The AI and semiconductor giant also forecast robust revenue for the current quarter, sending its stock up 4.4% in after-hours trading.
This helped offset a Financial Times report that the White House ordered U.S. semiconductor design software firms to halt services to Chinese companies.
In a separate report, The New York Times said the U.S. has suspended some tech exports to China, including aircraft engine components, semiconductors, and certain chemicals.
Dollar and Bonds
News of the court ruling pushed safe-haven currencies lower. The dollar rose 0.7% against the Swiss franc to 0.8327 and 0.7% against the Japanese yen to 145.86. The euro slipped 0.4% to $1.1245.
U.S. 10-year Treasury yields rose 3 basis points to 4.51%, and expectations for near-term rate cuts by the Federal Reserve diminished.
Minutes from the latest Fed meeting showed “most participants noted the risk that inflation could be more persistent than expected,” partly due to Trump’s tariffs.
Markets now see just a 22% chance of a rate cut in July, while the probability for September has dropped to around 60%, down from over 100% a month ago.
Commodities
In commodities, gold fell 0.5% to $3,271 per ounce.
Oil prices continued climbing, driven by supply concerns after OPEC+ maintained its production policies and the U.S. blocked Chevron from exporting Venezuelan crude.
Brent crude rose 96 cents to $65.87 a barrel, while U.S. crude gained $1 to reach $62.84 a barrel.
—Reuters
