Markets surged across Asia and beyond after a U.S. federal court halted President Donald Trump’s sweeping “Liberation Day” tariffs, offering hope to investors that one of the biggest threats to global trade might be delayed or even scrapped. The ruling by the Court of International Trade in Manhattan not only boosted equities and futures but also strengthened the U.S. dollar against safe haven currencies. While the White House plans to appeal, the move injected a wave of optimism into global financial markets.
Court Ruling Boosts Global Markets
The court ruled that President Trump had exceeded his executive powers by imposing blanket tariffs on U.S. trading partners without Congressional approval. This legal blow to the administration’s trade strategy gave traders room to breathe. Analysts like Kyle Rodda of Capital.com noted that the ruling could significantly reduce one of the major risks currently weighing on investor sentiment. The prospect of these tariffs being delayed—or ultimately blocked—revived interest in equities, with Japan’s Nikkei climbing 1.7% and South Korea’s KOSPI up 1.8%, reaching a nine-month high.
The broader Asia-Pacific region also responded positively, with the MSCI Asia-Pacific index rising 0.5%, and Chinese blue chips gaining 0.6%. The optimism spread to Europe as well, with EUROSTOXX 50 futures gaining 1.3%, and DAX and FTSE futures also posting notable gains. On Wall Street, S&P 500 futures rose 1.6%, and Nasdaq futures jumped 2.0%, supported by strong earnings from Nvidia.
Nvidia Earnings and U.S.-China Tensions
Nvidia helped propel U.S. tech stocks after reporting better-than-expected sales and a robust revenue forecast. Its shares surged 4.4% in after-hours trading, helping ease concerns about tightening U.S. export restrictions on critical technologies. However, tensions remained high after reports from the Financial Times and New York Times revealed fresh U.S. curbs on sales of semiconductor design software and other high-tech equipment to Chinese firms.
Meanwhile, traditional safe haven currencies like the Swiss franc and Japanese yen lost ground to the dollar. The greenback rose 0.7% against both, while U.S. 10-year Treasury yields climbed to 4.51%. The chances of a Federal Reserve rate cut in July dropped further, with inflation concerns tied to the tariff uncertainty lingering.
In commodities, gold slipped 0.5% to $3,271 an ounce. Oil prices rose on concerns over supply, with Brent reaching $65.87 and U.S. crude trading at $62.84 following OPEC+’s decision to maintain output levels and a new U.S. ban on Chevron exporting Venezuelan oil.
