Global stocks rose while the U.S. dollar weakened after giving up earlier gains against major peers on Thursday as markets digested the surprise ruling of a trade court that blocked President Donald Trump’s so-called “Liberation Day” tariffs.
The U.S. Court of International Trade issued a ruling late on Wednesday that Trump overstepped his authority by imposing across-the-board duties on imports from trading partners.
The decision triggered a court battle that would likely weigh on markets, after the Trump administration swiftly appealed the ruling and appeared poised to fight up to the Supreme Court if needed.
On Wall Street, all three indexes were trading higher after losing ground in the previous session, indicating that markets largely view the decision in a positive light. Nvidia was up 4% after reporting earnings that beat expectations after markets closed on Wednesday.
The Dow Jones Industrial Average rose 0.11% to 42,146.94, the S&P 500 rose 0.32% to 5,907.51 and the Nasdaq Composite rose 0.48% to 19,192.11.
Europe’s STOXX 600 index was down 0.13%, after rising earlier in the session. MSCI’s broadest index of Asia-Pacific shares outside Japan closed up 0.77% overnight.
MSCI’s gauge of stocks across the globe rose 0.42% to 880.05.
“The court striking down Trump’s tariffs is more than just a speed bump,” said Brian Jacobsen, chief economist at Annex Wealth Management in Wisconsin. “While President Trump can appeal the ru
The U.S. dollar had initially risen against safe-haven currencies following news of the court decision, but it has since pared those gains.
Data showed that labor market conditions continue to ease, as the number of Americans seeking unemployment benefits increased more than expected last week.
The dollar weakened 0.35% to 144.31 against the Japanese yen and was down 0.42% to 0.824 against the Swiss franc. The euro was up 0.56% at $1.1355.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro,fell 0.95% to 99.44.
U.S. Treasury yields, which have been under pressure with investors unnerved by Trump’s hefty tax and spend bill, initially rose on Thursday but retreated.
The yield on benchmark U.S. 10-year notes fell 3.1 basis points to 4.448%. The 30-year bond yield fell 2.6 basis points to 4.9521%.
“Bond markets might not like it quite as much. Although the tariffs couldn’t technically count in the scoring of the budget bill, bond investors were still counting the revenue,” Jacobsen said.
ling or try to side-step it, those options are limited and may end up giving the same result. Stock markets like the ruling.”
