Wall St gains after court blocks most Trump tariffs
Wall Street's main indexes have risen after a federal court ruled against most of US President Donald Trump's tariffs and AI bellwether Nvidia reported a 69 per cent surge in quarterly sales.
Nvidia jumped 5.0 per cent after reporting higher-than-expected quarterly sales growth, driven by customers stockpiling AI chips ahead of US export restrictions on China.
The company, however, warned that the new curbs are expected to cut $US8 billion ($A12 billion) from its current-quarter sales.
"We're in a secular growth trajectory here for AI, AI investment, and everything seems to be lining up for the next kind of multi-quarter expansion across AI," said David Russell, global head of market strategy at TradeStation.
The Philadelphia SE Semiconductor index rose in the wake of Nvidia's results, last up 1.4 per cent.
Eight of the 11 major S&P 500 sub-sectors rose, with information technology and consumer discretionary being the biggest gainers.
Global risk appetite was boosted after a US court invalidated with immediate effect most of Trump's sweeping levies imposed since January, but did not address some industry-specific tariffs on cars, steel and aluminium.
"Even if the ruling is upheld, the administration will have alternative routes to implement tariffs. But these will be slower and more targeted, as opposed to the current sweeping approach," said Lizzy Galbraith, senior political economist at Aberdeen.
Kevin Hassett, the White House economic adviser, said three trade deals were nearly done and he expected more despite the judgment.
In early trading on Thursday, the Dow Jones Industrial Average rose 51.16 points, or 0.12 per cent, to 42,149.86, the S&P 500 gained 32.60 points, or 0.55 per cent, to 5,921.01 and the Nasdaq Composite gained 173.41 points, or 0.91 per cent, to 19,273.71.
Dow component Salesforce weighed on the index, with its shares slumping 5.4 per cent even as the enterprise software provider raised its annual revenue and adjusted profit forecasts.
Apple, which Trump threatened with tariffs last week, rose nearly 1 per cent. Tesla rose 2.2 per cent and Amazon added 1.2 per cent among megacap and growth stocks.
The S&P 500 is currently about 3.0 per cent below an all-time high touched on February 19, rebounding from a nearly 19 per cent decline earlier in April on easing trade tensions, strong earnings and subdued inflation data that aided risk appetite.
May has been a solid month for equities, with both the S&P 500 and the Nasdaq on pace for their best monthly performances since November 2023.
A second reading from the Commerce Department showed gross domestic product contracted 0.2 per cent in the first quarter. Economists polled by Reuters had forecast a 0.3 per cent contraction.
At least five Fed policymakers including Fed Board Governor Adriana Kugler are scheduled to speak through the day.
In other earnings, Best Buy dropped 7.5 per cent after the electronics retailer lowered its annual comparable sales and profit forecasts amid concerns that US tariffs would weigh on consumer demand for big-ticket items.
Advancing issues outnumbered decliners by a 2.63-to-1 ratio on the NYSE and by a 1.73-to-1 ratio on the Nasdaq.
The S&P 500 posted five new 52-week highs and no new lows, while the Nasdaq Composite recorded 25 new highs and 23 new lows.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
SBS Australia
an hour ago
- SBS Australia
Why Elon Musk's White House farewell has people talking
Elon Musk's farewell at the White House, which marked the end of his short tenure as a special government employee, has been overshadowed by a black eye, problems at Tesla, and allegations of drug use. In a press conference with Donald Trump on Friday local time, the United States president praised Musk as "one of the greatest business leaders and innovators the world has ever produced". But it was an unusual briefing, with Musk dodging questions about his appearance, while receiving a present that Trump reserves for only "very special people". Musk told reporters the injury was from his 5-year-old son, after he told the boy: "'Go ahead, punch me in the face.' And he did". Musk also received a large golden key in a box, a gift from Trump acknowledging his "very great talents". So, if things appear amicable between Musk and Trump, why are they parting ways? Musk has not given a specific reason for his departure from the Trump administration. He announced on Wednesday that his "scheduled time" in the Trump administration had come to an end and thanked Trump for "the opportunity to reduce wasteful spending". Meanwhile, his electric vehicle company, Tesla, has been in trouble, with declining sales and stock prices falling 12 per cent this year. Tesla shareholders had written an open letter to Musk, describing the company as in "crisis" and demanding he return to work a standard 40-hour week. During the press conference, Musk was also asked about reports of extensive drug use, which the New York Times claimed involved ketamine, ecstasy, and psychedelic mushrooms. The Times reported on Friday that Musk had used these drugs while in office, citing White House insiders and people close to the billionaire. The DOGE leader developed what those sources described to the Times as a serious ketamine habit. Musk dismissed the claims outright, saying it was "fake news". "The New York Times? Is that the same publication that got a Pulitzer prize for false reporting on the Russiagate? "I think it is. That New York Times? Let's move on."
The Advertiser
an hour ago
- The Advertiser
'Unjustified': tariff hike risks damaging Aussie steel
Australia risks becoming a dumping ground for cheap steel as pressure mounts for the prime minister to meet with Donald Trump following his "unjustified" doubling of tariffs on steel imports. Mr Trump on Saturday announced plans to increase tariffs on foreign imports of steel from 25 to 50 per cent to "further secure the steel industry in the United States". The decision could impact 100,000 Australian jobs, with the sector exporting more than $414 million worth of products to the US in 2024. Its peak body says it will continue to work with the federal government to push for an exemption from the Trump administration. "The subsequent disruptions to global steel trade could see Australia become a dumping ground for imported steel," Australian Steel Institute chief executive Mark Cain said. "And it could exacerbate the surge in imported low-priced steel that is damaging the industry." Trade Minister Don Farrell says the tariffs are unjustified and not the act of a friend. "They are an act of economic self-harm that will only hurt consumers and businesses who rely on free and fair trade," he said on Saturday. "We will continue to engage and advocate strongly for the removal of the tariffs." Opposition trade spokesman Kevin Hogan said the latest move was concerning for Australian jobs The coalition expected the US to honour its obligations under both nations' free trade agreement, he added. "The Albanese government needs to double its efforts to protect our steel industry and local jobs for our steel workers," Mr Hogan said in a statement. "This is why it is imperative that the Australian prime minister personally meets with President Trump ... to develop a personal rapport with the United States president and protect Australian industries." Labor has sought to temper expectations on whether it can land a deal with the US to remove the tariffs, like it did after nine months of lobbying in the first Trump administration. The US imported 289 product categories in 2024, costing $US147 billion ($A229 billion), with nearly two-thirds of those aluminium and one-third steel, according to Census Bureau data from the US International Trade Commission. The 25 per cent tariffs on steel and aluminium were among the earliest implemented following Mr Trump's return to the White House in January and came into effect in March. Australia will continue to push for Mr Trump to drop his tariffs after a US federal court blocked his Liberation Day taxes on imported goods from going into effect. Goods from Australia are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US face 25 per cent tariffs before Mr Trump's latest announcement. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. The administration launched an appeal, decrying "unelected judges" should not decide how to address a "national emergency". Australia risks becoming a dumping ground for cheap steel as pressure mounts for the prime minister to meet with Donald Trump following his "unjustified" doubling of tariffs on steel imports. Mr Trump on Saturday announced plans to increase tariffs on foreign imports of steel from 25 to 50 per cent to "further secure the steel industry in the United States". The decision could impact 100,000 Australian jobs, with the sector exporting more than $414 million worth of products to the US in 2024. Its peak body says it will continue to work with the federal government to push for an exemption from the Trump administration. "The subsequent disruptions to global steel trade could see Australia become a dumping ground for imported steel," Australian Steel Institute chief executive Mark Cain said. "And it could exacerbate the surge in imported low-priced steel that is damaging the industry." Trade Minister Don Farrell says the tariffs are unjustified and not the act of a friend. "They are an act of economic self-harm that will only hurt consumers and businesses who rely on free and fair trade," he said on Saturday. "We will continue to engage and advocate strongly for the removal of the tariffs." Opposition trade spokesman Kevin Hogan said the latest move was concerning for Australian jobs The coalition expected the US to honour its obligations under both nations' free trade agreement, he added. "The Albanese government needs to double its efforts to protect our steel industry and local jobs for our steel workers," Mr Hogan said in a statement. "This is why it is imperative that the Australian prime minister personally meets with President Trump ... to develop a personal rapport with the United States president and protect Australian industries." Labor has sought to temper expectations on whether it can land a deal with the US to remove the tariffs, like it did after nine months of lobbying in the first Trump administration. The US imported 289 product categories in 2024, costing $US147 billion ($A229 billion), with nearly two-thirds of those aluminium and one-third steel, according to Census Bureau data from the US International Trade Commission. The 25 per cent tariffs on steel and aluminium were among the earliest implemented following Mr Trump's return to the White House in January and came into effect in March. Australia will continue to push for Mr Trump to drop his tariffs after a US federal court blocked his Liberation Day taxes on imported goods from going into effect. Goods from Australia are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US face 25 per cent tariffs before Mr Trump's latest announcement. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. The administration launched an appeal, decrying "unelected judges" should not decide how to address a "national emergency". Australia risks becoming a dumping ground for cheap steel as pressure mounts for the prime minister to meet with Donald Trump following his "unjustified" doubling of tariffs on steel imports. Mr Trump on Saturday announced plans to increase tariffs on foreign imports of steel from 25 to 50 per cent to "further secure the steel industry in the United States". The decision could impact 100,000 Australian jobs, with the sector exporting more than $414 million worth of products to the US in 2024. Its peak body says it will continue to work with the federal government to push for an exemption from the Trump administration. "The subsequent disruptions to global steel trade could see Australia become a dumping ground for imported steel," Australian Steel Institute chief executive Mark Cain said. "And it could exacerbate the surge in imported low-priced steel that is damaging the industry." Trade Minister Don Farrell says the tariffs are unjustified and not the act of a friend. "They are an act of economic self-harm that will only hurt consumers and businesses who rely on free and fair trade," he said on Saturday. "We will continue to engage and advocate strongly for the removal of the tariffs." Opposition trade spokesman Kevin Hogan said the latest move was concerning for Australian jobs The coalition expected the US to honour its obligations under both nations' free trade agreement, he added. "The Albanese government needs to double its efforts to protect our steel industry and local jobs for our steel workers," Mr Hogan said in a statement. "This is why it is imperative that the Australian prime minister personally meets with President Trump ... to develop a personal rapport with the United States president and protect Australian industries." Labor has sought to temper expectations on whether it can land a deal with the US to remove the tariffs, like it did after nine months of lobbying in the first Trump administration. The US imported 289 product categories in 2024, costing $US147 billion ($A229 billion), with nearly two-thirds of those aluminium and one-third steel, according to Census Bureau data from the US International Trade Commission. The 25 per cent tariffs on steel and aluminium were among the earliest implemented following Mr Trump's return to the White House in January and came into effect in March. Australia will continue to push for Mr Trump to drop his tariffs after a US federal court blocked his Liberation Day taxes on imported goods from going into effect. Goods from Australia are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US face 25 per cent tariffs before Mr Trump's latest announcement. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. The administration launched an appeal, decrying "unelected judges" should not decide how to address a "national emergency". Australia risks becoming a dumping ground for cheap steel as pressure mounts for the prime minister to meet with Donald Trump following his "unjustified" doubling of tariffs on steel imports. Mr Trump on Saturday announced plans to increase tariffs on foreign imports of steel from 25 to 50 per cent to "further secure the steel industry in the United States". The decision could impact 100,000 Australian jobs, with the sector exporting more than $414 million worth of products to the US in 2024. Its peak body says it will continue to work with the federal government to push for an exemption from the Trump administration. "The subsequent disruptions to global steel trade could see Australia become a dumping ground for imported steel," Australian Steel Institute chief executive Mark Cain said. "And it could exacerbate the surge in imported low-priced steel that is damaging the industry." Trade Minister Don Farrell says the tariffs are unjustified and not the act of a friend. "They are an act of economic self-harm that will only hurt consumers and businesses who rely on free and fair trade," he said on Saturday. "We will continue to engage and advocate strongly for the removal of the tariffs." Opposition trade spokesman Kevin Hogan said the latest move was concerning for Australian jobs The coalition expected the US to honour its obligations under both nations' free trade agreement, he added. "The Albanese government needs to double its efforts to protect our steel industry and local jobs for our steel workers," Mr Hogan said in a statement. "This is why it is imperative that the Australian prime minister personally meets with President Trump ... to develop a personal rapport with the United States president and protect Australian industries." Labor has sought to temper expectations on whether it can land a deal with the US to remove the tariffs, like it did after nine months of lobbying in the first Trump administration. The US imported 289 product categories in 2024, costing $US147 billion ($A229 billion), with nearly two-thirds of those aluminium and one-third steel, according to Census Bureau data from the US International Trade Commission. The 25 per cent tariffs on steel and aluminium were among the earliest implemented following Mr Trump's return to the White House in January and came into effect in March. Australia will continue to push for Mr Trump to drop his tariffs after a US federal court blocked his Liberation Day taxes on imported goods from going into effect. Goods from Australia are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US face 25 per cent tariffs before Mr Trump's latest announcement. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. The administration launched an appeal, decrying "unelected judges" should not decide how to address a "national emergency".
7NEWS
2 hours ago
- 7NEWS
'Unjustified': Donald Trump's tariff hike risks damaging Aussie steel
Australia risks becoming a dumping ground for cheap steel as pressure mounts for the prime minister to meet with Donald Trump following his 'unjustified' doubling of tariffs on steel imports. Trump on Saturday announced plans to increase tariffs on foreign imports of steel from 25 to 50 per cent to 'further secure the steel industry in the United States'. The decision could impact 100,000 Australian jobs, with the sector exporting more than $414 million worth of products to the US in 2024. Its peak body says it will continue to work with the federal government to push for an exemption from the Trump administration. 'The subsequent disruptions to global steel trade could see Australia become a dumping ground for imported steel,' Australian Steel Institute chief executive Mark Cain said. 'And it could exacerbate the surge in imported low-priced steel that is damaging the industry.' Trade Minister Don Farrell said the tariffs are unjustified and not the act of a friend. 'They are an act of economic self-harm that will only hurt consumers and businesses who rely on free and fair trade,' he said on Saturday. 'We will continue to engage and advocate strongly for the removal of the tariffs.' Opposition trade spokesman Kevin Hogan said the latest move was concerning for Australian jobs. The Coalition expected the US to honour its obligations under both nations' free trade agreement, he added. 'The Albanese government needs to double its efforts to protect our steel industry and local jobs for our steel workers,' Mr Hogan said in a statement. 'This is why it is imperative that the Australian prime minister personally meets with President Trump ... to develop a personal rapport with the United States president and protect Australian industries.' Labor has sought to temper expectations on whether it can land a deal with the US to remove the tariffs, like it did after nine months of lobbying in the first Trump administration. The US imported 289 product categories in 2024, costing $US147 billion ($A229 billion), with nearly two-thirds of those aluminium and one-third steel, according to Census Bureau data from the US International Trade Commission. The 25 per cent tariffs on steel and aluminium were among the earliest implemented following Mr Trump's return to the White House in January and came into effect in March. Australia will continue to push for Mr Trump to drop his tariffs after a US federal court blocked his Liberation Day taxes on imported goods from going into effect. Goods from Australia are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US face 25 per cent tariffs before Mr Trump's latest announcement. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs.
