Global Stock Rally Faces Hurdles Amid Trump’s Tariff Uncertainty, Yet Nvidia Leads the Charge

NEW YORK (AP) — Stock markets around the world showed mixed results after an important U.S. court decision concerning tariffs. This court ruling, which blocks many of President Trump’s tariffs on imports, created a temporary buzz in financial markets.

By late Thursday, the S&P 500 was up just 0.2%, after a stronger start. The Dow Jones Industrial Average gained 45 points, or 0.1%. Meanwhile, the Nasdaq composite also rose by 0.2%.

Earlier, stocks surged nearly 2% in Tokyo and Seoul as traders reacted to the news. The U.S. Court of International Trade ruled that the 1977 International Emergency Economic Powers Act, which Trump used to impose significant tariffs, does not actually allow for such measures.

This ruling fueled optimism that Trump’s tariffs, which were seen as a threat to the global economy and consumer prices, could be less impactful moving forward. However, many companies are still feeling the effects of these tariffs, which Trump aimed to use to bring manufacturing back to the U.S., despite potential economic pain for households.

The White House has filed an appeal against this court ruling, leaving the future of tariffs uncertain. The court’s decision addresses only some of Trump’s tariffs and not those imposed on steel, aluminum, and autos under a different law.

Financial experts have weighed in on the situation. Ulrike Hoffmann-Burchardi, a chief investment officer at UBS Global Wealth Management, noted that Trump can still impose significant tariffs through other means. Brian Jacobsen, chief economist at Annex Wealth Management, mentioned the new ruling raised the bar for Trump to reinstate these tariffs, which may be more comforting uncertainty than previous situations.

Despite the tempered excitement, there’s still a glimmer of hope for the S&P 500, which is just 4% shy of its all-time high after a dip of around 20% last month.

Tech stocks, particularly Nvidia, led gains on Wall Street. Nvidia’s recent profit and revenue exceeded expectations, showcasing its dominance in the artificial intelligence market. C3.ai, another tech firm, surged 24.4% after reporting strong earnings and a significant contract increase with the U.S. Air Force.

Other companies also saw a boost. E.l.f. Beauty rose 24% after announcing a profitable quarter and a major acquisition of Hailey Bieber’s Rhode skincare brand, which brought in $212 million in sales over the last year.

However, not all companies reported good news. Best Buy’s shares fell 7.7% despite better-than-expected profits, as their revenue missed projections. The company also lowered its annual forecasts, attributing the uncertainty over tariffs to their cautious outlook.

In a broader economic context, the bond market responded with slight declines in Treasury yields as mixed economic reports emerged. The yield on the 10-year Treasury dropped to 4.42% from 4.47%. Likewise, the two-year Treasury yield eased to 3.94%.

Internationally, Japan’s Nikkei 225 index jumped 1.9%, leading gains in Asia, followed by increases in Hong Kong and South Korea. However, European markets experienced a more muted response, with France’s CAC 40 and Germany’s DAX seeing swings from gains to minor losses.

Recent studies indicate that uncertainty from tariffs has impacted companies’ ability to provide financial forecasts for the upcoming year. This uncertain economic climate has even had social media buzzing, with many discussing the implications of trade policies on everyday life.

For more details, you can refer to the AP report here.

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