Stocks Rally as Tariff Block Boosts Investor Confidence
On Thursday, stocks soared as investors welcomed a U.S.court decision that halted President Trump’s tariffs. The Nasdaq Composite climbed 1.3%, while the S&P 500 rose 0.7%. The Dow Jones Industrial Average also saw a slight gain, opening 50 points higher.
This market uplift follows Nvidia’s strong earnings report and the U.S. Court of International Trade’s ruling. The court blocked some of Trump’s tariffs, citing an overreach of his authority under the International Emergency Economic Powers Act. However, the White House has appealed this decision.
Stocks have been volatile as Trump’s tariff announcements. Thay’ve risen with news of trade deals or pauses and fallen with new threats. For instance, Trump’s proposed 50% tariff on the EU caused market jitters. Recently, the Dow jumped when Trump delayed tariff implementation until July 9, pending a U.S.-EU deal.
Oil prices rose,Treasury yields stayed flat,and Bitcoin remained near $108k. SkyBridge Capital’s Anthony Scaramucci tweeted that these developments could propel Bitcoin to $500k.
Wall Street was also encouraged by Q1 2025 GDP data, wich showed a 0.2% contraction, better than the expected 0.3%. Jobless claims, however, rose to 240,000, exceeding expectations. The Federal Reserve’s May meeting minutes highlighted economic uncertainty, with officials noting a weaker growth outlook.
While the tariff block is positive for stocks, Goldman Sachs warns that Trump’s governance may find other ways to impose tariffs. Investors will closely watch how these events unfold.
