Markets welcome court ruling against Trump's tariffs as shares, US
dollar and oil gain
[May 29, 2025] By
ELAINE KURTENBACH
Financial markets welcomed a U.S. court ruling that blocks President
Donald Trump from imposing sweeping tariffs on imports under an
emergency-powers law.
U.S. futures jumped early Thursday and oil prices rose more than $1. The
U.S. dollar rose against the yen and euro.
The court found the 1977 International Emergency Economic Powers Act,
which Trump has cited as his basis for ordering massive increases in
import duties, does not authorize the use of tariffs.
The White House immediately appealed and it was unclear if Trump would
abide by the ruling in the interim. The long term outcome of legal
disputes over tariffs remains uncertain. But investors appeared to take
heart after the months of turmoil brought on by Trump's trade war.
The future for the S&P 500 was up 1.5% while that for the Dow Jones
Industrial Average gained 1.2%.
In early European trading, Germany's DAX gained 0.5% to 24,160.75. The
CAC 40 in Paris jumped 0.9% to 7,860.67. Britain's FTSE was nearly
unchanged at 8,722.63.
Japan’s Nikkei 225 index jumped 1.9% to 38,432.98. American’s largest
ally in Asia has been appealing to Trump to cancel the tariffs he has
ordered on imports from Japan and to also stop 25% tariffs on steel,
aluminum and autos.
The ruling also pushed the dollar sharply higher against the Japanese
yen. It was trading at 145.40 yen early Thursday, up from 144.87 yen
late Wednesday.
A three-judge panel ruled on several lawsuits arguing Trump exceeded his
authority, casting doubt on trade policies that have jolted global
financial markets, frustrated trade partners and raised uncertainty over
the outlook for inflation and the global economy.
Many of Trump's double-digit tariff hikes are paused for up to 90 days
to allow time for trade negotiations, but the uncertainty they cast over
global commerce has stymied businesses and left consumers wary about
what lies ahead.
“Just when traders thought they’d seen every twist in the tariff saga,
the gavel dropped like a lightning bolt over the Pacific,” Stephen Innes
of SPI Asset Management said in a commentary.
The ruling was, at the least, “a brief respite before the next
thunderclap,” he said.
Elsewhere in Asia, Hong Kong's Hang Seng added 1.3% to 23,561.86, while
the Shanghai Composite index gained 0.7% to 3,363.45.
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The screens show the Korea Composite Stock Price Index (KOSPI),
left, the foreign exchange rate between U.S. dollar and South Korean
won, center, and the Korean Securities Dealers Automated Quotations
(KOSDAQ) are seen at a dealing room of Hana Bank in Seoul, South
Korea, Wednesday, May 28, 2025. (AP Photo/Lee Jin-man)
 Australia's S&P/ASX 200 gained 0.2%
to 8,409.80.
In South Korea, which like Japan relies heavily on exports to the
U.S., the Kospi surged 1.9% to 2,720.64. Shares also were helped by
the Bank of Korea's decision to cut its key interest rate to 2.5%
from 2.75%, to ease pressure on the economy.
Taiwan's Taiex edged 0.1% lower, and India's Sensex lost 0.2%.
On Wednesday, U.S. stocks cooled, with the S&P 500 down 0.6% but
still within 4.2% of its record after charging higher amid hopes
that the worst of the turmoil caused by Trump’s trade war may have
passed. It had been roughly 20% below the mark last month.
The Dow industrials lost 0.6% and the Nasdaq composite fell 0.5%.
Trading was relatively quiet ahead of a quarterly earnings release
for Nvidia, which came after markets closed.
The bellwether for artificial intelligence overcame a wave of
tariff-driven turbulence to deliver another quarter of robust growth
thanks to feverish demand for its high-powered chips that are making
computers seem more human. Nvidia's shares jumped 6.6% in afterhours
trading.
Like Nvidia, Macy’s stock also swung up and down through much of the
day, even though it reported milder drops in revenue and profit for
the latest quarter than analysts expected. Its stock ended the day
down 0.3%.
The bond market showed relatively little reaction after the Federal
Reserve released the minutes from its latest meeting earlier this
month, when it left its benchmark lending rate alone for the third
straight time. The central bank has been holding off on cuts to
interest rates, which would give the economy a boost, amid worries
about inflation staying higher than hoped because of Trump’s
sweeping tariffs.
In other dealings early Thursday, the yield on the 10-year Treasury
rose to 4.52% from 4.47% late Wednesday.
U.S. benchmark crude oil gained $1.06 to $62.90 per barrel. Brent
crude, the international standard, added $1.00 to $65.32 per barrel.
The euro slipped to $1.1280 from $1.1292.
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