Premarket: U.S. stock futures jump as Trump's tariffs hit court roadblock
European stocks and Wall Street futures rose on Thursday after a U.S. federal court blocked President Donald Trump's so-called 'Liberation Day' tariffs from going into effect, sending the dollar up on safe-haven currencies.
The little-known Manhattan-based Court of International Trade ruled that Trump overstepped his authority by imposing his April 2 across-the-board duties on imports from U.S. trading partners.
The White House quickly appealed the decision, and could take it all the way to the Supreme Court if needed. But in the meantime, it offered some hope that Trump might back away from the highest tariff levels he had threatened.
'The ruling has brought a temporary sense of relief to the markets, even as uncertainty lingers over whether the administration will fully comply,' said James Leong, chief executive officer at Grasshopper Asia.
'While volatility has eased for now, the lack of clarity around the government's response could reignite market turbulence. Until the Supreme Court provides a definitive ruling, we're unlikely to see a lasting resolution,' he added.
The ruling could also encourage U.S. trading partners to stall any trade negotiations they are having with the White House while they wait to see how the case is resolved.
However, analysts at Goldman Sachs noted the order does not block sectoral levies, and there were other legal avenues for Trump to impose across-the-board and country-specific tariffs.
'This ruling represents a setback for the administration's tariff plans and increases uncertainty but might not change the final outcome for most major U.S. trading partners,' analyst Alec Phillips wrote in a note.
Europe's STOXX 600 index was up 0.3% in early London trade.
U.S. markets looked primed for a stronger reaction with S&P 500 futures last up 1.6%. Nasdaq futures were up 2%, also benefiting from relief over earnings from Nvidia, which beat sales estimates.
But Britain's FTSE 100 index shrugged off the news and was last down 0.1%.
'Is this a sign that stock markets in countries who did manage to score trade deals with the US in recent weeks, could be at a disadvantage if tariffs are reversed? This could be a short-term theme to watch,' said Kathleen Brooks, research director at XTB.
Britain was the first country to secure a trade deal with the U.S. and will hold talks with Washington next week to speed up the implementation of that deal, the Financial Times reported.
Earlier in Asia, Japan's Nikkei rose 1.9%, while South Korean shares climbed 1.9% to a nine-month high. Chinese blue chips firmed 0.6%.
The news of the court decision hit traditional safe-haven currencies, which have benefitted from tariff fears punishing the U.S. dollar.
The dollar gained nearly 1% against the Japanese yen . It later eased and but remained up 0.3%. The dollar was, meanwhile, up 0.4% against the Swiss franc.
Another beneficiary of dollar woes, the euro dropped as much as 0.7% and was last down 0.2% against the greenback.
U.S. Treasury yields rose, adding to the pressure on the market unnerved by Trump's hefty tax and spend bill, which passed the House of Representatives last week.
Yields on 10-year Treasuries, which move inversely with prices, were up 4 basis points to 4.52% and markets further shaved the chance of a Federal Reserve rate cut anytime soon.
Longer-dated, 30-year yields held above the closely-watched 5% level.
Minutes of the last Fed meeting showed 'almost all participants commented on the risk that inflation could prove to be more persistent than expected' due to Trump's tariffs.
A rate cut in July is now seen as around a 20% chance, while September has come in at around 60%, having been more than fully priced a month ago.
In commodity markets, gold was down 0.2% to $3,283 an ounce .
Oil prices extended a rally first begun on supply concerns as OPEC+ agreed to leave its output policy unchanged and the U.S. barred Chevron from exporting Venezuelan crude.
Brent rose $1 to $65.9 a barrel, while U.S. crude rose similarly to $62.84 per barrel.
Reuters
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBC
an hour ago
- CBC
How victory gardens crop up during times of crisis
Amid high grocery prices and U.S. tariff threats, Bill Belsey is fighting back with seeds and soil in his small "victory garden." "When Trump announced … what at least I interpreted as sort of economic warfare against Canada, it took me back to my parents' generation," Belsey told CBC Radio's Cost of Living from his home in Cochrane, Alta. His father served in the Second World War, and his mother, like many Canadians left behind, contributed to the war effort by starting a victory garden. "There was a sort of communal kind of feeling like, yes, we're in this together. And so they started planting, even though they weren't really farmers or gardeners," said Belsey. "And I got thinking about that a little bit and it dawned on me that, look, I can't change world events, but there are things I could do, and this is one of those." Victory gardens, promoted as a way to ease food shortages during the world wars, always crop up again in times of crisis, according to Debi Goodwin, author of A Victory Garden for Trying Times. For some, they're now emerging as a tool to fight against U.S. President Donald Trump's tariffs and threats to Canada's sovereignty. "People have started them whenever they've seen something that scares them," said Goodwin. Food as a 'way of fighting against your enemy' The roots of the victory garden can be traced back to the First World War, when Britain encouraged citizens to turn their flower gardens into vegetable gardens in an effort to stave off food shortages. But it was in the U.S. that "victory gardens really took off," Goodwin said. American businessman Charles Lathrop Pack was key in promoting victory gardens, pushing the importance of self-sustainability of food supplies in the country and helping ship food to its allies. After the war, the gardens largely disappeared until the Second World War led to their revival. At the time, an estimated 200,000 victory gardens were growing in Canada, according to Goodwin. Governments gave people seeds, tools and instructions on how to yield plentiful crops. "Food was seen as a way of fighting against your enemy," Goodwin said. "It was creating a supply of food that would last a family of five through the summer and also carry you through the fall, if not the whole winter." 'A sense of control' Manish Kushwaha, who owns Gaia Organic Seeds in Ottawa, has noticed a jump in sales and renewed interest from people looking to grow their own food. He says gardeners are usually done buying seeds in March, but he's had consistent orders since then. "I correlate that 100 per cent to the tariffs." WATCH | Local seed seller seeing a 'boom' in sales in wake of trade war: This local seed seller says he's seeing a 'boom' in sales in wake of trade war 2 months ago Duration 1:53 Manish Kushwaha, the owner of Gaia Organic Seeds in Riverside South, says March is usually when seed sales die off. But this year, his business has seen such an influx of orders they cannot keep up. He has seen this before: "COVID happened, and my sales skyrocketed." It's moments of uncertainty like that when people turn back to victory gardens, Goodwin said. During the OPEC crisis of 1973, people tended their backyards and created public gardens, she said, also pointing to the first summer of the COVID-19 pandemic, when seed companies couldn't keep up with the demand. "It's not only a chance to beat the cost of rising food — which were both elements in those times — but it gives people a sense of control over their lives," Goodwin said. "I think any time anybody has anxiety, they can look to their garden to create beauty or grow food." Since the U.S. announced tariffs on Canadian goods, two of Canada's biggest packet seed companies, Ontario Seed and West Coast Seeds, told CBC they have seen a 20 per cent increase in sales compared to the same period last year. In an email to Cost of Living, West Coast Seeds said, "Many of our customers are expressing their preference to buy from Canadian-owned and operated companies in response to the tariffs. Back in Cochrane, Belsey is growing lettuce, radishes and carrots in his planter box. "You can get a lot of food out of a little space," he said. "So much happens in the world, and we don't really know what we as individuals can do." "It's one small [thing] that we as individuals, as Canadians, can do at a time when we're feeling really under the gun."
Globe and Mail
an hour ago
- Globe and Mail
Tesla Stock or Palantir Stock? The Best Growth Stock to Buy Now.
Tesla (NASDAQ: TSLA) and Palantir (NASDAQ: PLTR) are two of the most popular growth stocks on the global market. *Stock prices used were the afternoon prices of May 28, 2025. The video was published on May 30, 2025. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $360,955!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $37,958!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $638,985!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of May 19, 2025 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies and Tesla. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
CBC
an hour ago
- CBC
Can Mark Carney defeat Canadian populism?
Speaking to reporters after the speech from the throne on Tuesday, Conservative Leader Pierre Poilievre struck a decidedly institutionalist tone. "We joined today in thanking His Majesty for coming to Canada and delivering the throne speech, reinforcing our ancient, great British liberties," he said. "A parliamentary system that goes back 800 years. A system that has served Canada well and has been the foundation of what I love to call the Canadian promise." A Conservative praising the monarch might not seem unusual. Former foreign affairs minister John Baird, a close ally of Poilievre's, once demanded that his department hang a portrait of the Queen in the foyer of its headquarters. But support for the monarchy among Conservative voters seems to have slipped in recent years. Pollara recently found Conservatives are evenly split on Canada remaining a constitutional monarchy and the Angus Reid Institute says the share of Conservatives supporting the monarchy has fallen from 53 per cent in 2016 to 30 per cent now. More than that, Poilievre has enthusiastically embraced the modern style of populism. He has thrived on conflict and for the last three years has held himself out as a politician ready to do battle with the system — aligning himself with the self-styled "freedom convoy," vowing to fire the governor of the Bank of Canada and do battle with "elites," "gatekeepers" "liberal media" and "woke ideology" on behalf of the "common people." WATCH | Poilievre on the throne speech: Poilievre says King's throne speech reaffirmed Canada's traditions 4 days ago Duration 1:17 Following the throne speech, Conservative Leader Pierre Poilievre emphasized the importance of strengthening Canada's relationship with the U.K. and reminding the world of the countries' shared traditions. Given the willingness of Poilievre and other Conservatives to challenge the Speaker and push the limits of acceptable behaviour in the House of Commons, it's also interesting to see Poilievre praising the parliamentary system. But is it possible that the visit of King Charles — in addition to asserting Canada's sovereignty and reminding Canadians of the unique history and enduring institutions that underpin this country's democracy — also marked the end of Canada's brief populist moment? It is, of course, far too early to draw any such conclusion — not least because Poilievre's Conservatives are still just a month removed from winning 41 per cent of the popular vote. One way or another, the ultimate fate of the populist appeal in Canada may really depend on what His Majesty's government does next. Can Carney show the system works? Mark Carney might seem like exactly the wrong sort of character to battle populism. When he was first rumoured as a potential successor to Justin Trudeau, it was easy to imagine that Poilievre would have a relatively easy time running an anti-elite campaign against a former Goldman Sachs banker. The return of Donald Trump and his threats against Canada obviously changed the electoral calculus for at least a plurality of voters. But before the Trump question came to dominate his campaign, Carney seemed to understand that he was facing an electorate that was disenchanted with the way things worked — or rather, didn't work. "The system, it's not working as it should and it's not working as it could," Carney said in Edmonton when he declared his candidacy for leadership of the Liberal Party. "People are anxious. And no wonder. Too many are falling behind. Too many young people can't afford a home. Too many people can't find a doctor." Carney noted that technological change, climate change and now Trump were adding to the sense of uncertainty. But he also drew a line between himself and Poilievre's contention that Canada was "broken" — comparing Poilievre to the United Kingdom's Conservatives. "Conservatives don't run around saying Canada is broken because they want to fix it," Carney said. "They want a license to demolish and destroy, including many of the things on which we all depend. Because populists don't understand how our economy and our society actually works." WATCH | Tariff uncertainty continues: At Issue | Canada caught in Trump tariff uncertainty 1 day ago Duration 22:04 One way Carney could make the case against demolition and destruction is by demonstrating that the system can work better. And the most tangible way to do that might be to address the concerns of those young people who can't afford a home. In this spring's election, Carney's Liberals effectively battled Poilievre's Conservatives to a draw on housing, at least limiting the advantage that the Conservatives could have had on the issue. And Liberal re-election hopes may hinge on their ability to show real progress toward solving the housing crisis — a crisis that Carney has promised to meet with speed and force. But even if the Carney government is able to make good on his promise to rapidly increase construction and reduce the cost of housing, would successfully addressing that issue — and others like it — be enough to turn back the populist wave that seemed, until a few months ago, to be washing over Canadian politics? Will Trump discredit populism? As populist parties and politicians have made advances globally — in places like the United States and the United Kingdom — there has been debate about whether their supporters are driven by economic frustrations or cultural issues. The answer might ultimately prove to be some combination of the two. But at the very least, addressing issues like housing might weaken the underlying appeal or logic of populism. Beyond housing, it might help the anti-populist cause if Carney can find ways to reinforce trust in government or demonstrably work across party lines (at least at the provincial level). Whether inspired by their reverence for the monarchy or not, Conservatives themselves could also decide to move away from some of its populist elements. But could Donald Trump actually now prove to be the greatest force working against populism in Canada? Trump's unavoidable presence and glaring example could conceivably have two impacts on Canadian politics. First, it might discredit — or harden opposition against — the populist style of politics in the eyes of many Canadians. At the very least, we have already seen Poilievre forced to grapple with accusations that he is too much like Trump — with non-Conservative voters largely coalescing behind Carney and the Liberals. Second, the direct threat Trump poses to Canada and the wider instability he is causing may be changing what Canadian voters want. After last month's election result, David Coletto of Abacus Data argued that the predominant mood in Canada had shifted from anger to seeking stability — and speculated that the "age of rage" may have given way to the "age of reassurance." But whatever the Trump effect turns out to be, a lot may still depend on how well non-populist governments and leaders make the case against populism. Trump may have reset Canadian politics, but if reassurance doesn't come, rage may be harder to hold back.
