US Markets Rally as Trump Tariffs Blocked, Nvidia Earnings Boost Sentiment

Suspense crime, Digital Desk : After the US Court of International Trade lifted the global tariffs set by President Trump, US stock futures surged while the dollar gained. The ruling changed investor sentiment, removing uncertainty around the July tariff.  

The S&P 500 and Nasdaq 100 surged by 1.6% and 2%, respectively, along with other Asian stock markets. In response, the yen weakens by 0.8% while oil prices increased by 0.8%. Furthermore, the former US administration has expressed intentions to contest the court’s ruling.  

Optimism around the AI sector, along with Nvidia projecting strong revenue, led to a surge in investor sentiment, calming AI sector fears. Nvidia stocks jumped 5%. Their CEO Jensen Huang stated that “Nvidia’s AI industry continues to rapidly grow.”  

Nvidia’s surge was met with a decline in HP stocks that dropped by 15% alongside lowered profit guidance, attributing the economic costs to US tariffs on Chinese products.

Trump's Tariffs Challenge Legally; The Response From Wall Street  

U.S. Trade Court in Manhattan has blocked the use of expansive emergency powers global tariffs were enforced with, including flat global tariffs, China-specified ones, and China, Canada, and Mexico, fentanyl-related ones. Other legal bases – Section 232 or Section 301 – which refer to steel, aluminum, and vehicles, were not mentioned in this ruling.  

Market experts believe this move removes a significant risk for the short-term. Investors, however, feel overall subdued.  

Key Economic Indicators and Movements in the Market  

Stocks:  

+1.4%: S&P 500 futures  
+1.1%: Japan's Topix  
+0.2%: Australia’s S&P/ASX 200  
+0.9%: Euro Stoxx 50 futures  

Currencies:  
+0.3%: US Dollar Index  
-0.4%: Euro at $1.1242  
-0.8%: Japanese Yen at 145.96 per dollar  
Steady: Offshore Yuan at 7.1987 per dollar  

Cryptocurrencies:  
+0.5%: Bitcoin at $107,870.01  
+2.4%: Ether at $2,699.63  

Bonds:  
+3bps to 4.51%: US 10-Year Treasury Yield  
+1.5 bps to 1.525%: Japan 10-Year Yield  
+4bps to 4.37%: Australia 10-Year Yield  

Commodities:  
+0.8% to $62.32/barrel: WTI Crude  
-$0.8 to $3,260.25: Spot Gold per ounce

Read More: Red Alert or Buying Opportunity? What’s Behind Today’s Stock Market Dip