Global markets rally as U.S. court blocks Trump-era tariffs; AI earnings also boost sentiment
A U.S. federal court ruled that Donald Trump did not have the authority to set tariffs unilaterally, effectively blocking the so-called 'Liberation Day' tariffs introduced during his presidency. The Trump administration has already appealed the decision. The White House issued a sharp response, stating, 'It's not for unelected judges to decide how to properly address a national emergency.'
This legal development was interpreted by markets as a rollback of protectionist trade policies, leading to a relief rally in equities. U.S. stock index futures surged in response: Dow Futures jumped 500 points (+1.19%) to 42,599
Nasdaq Futures gained 400 points (+1.88%) to 21,718
Russell 2000 Futures rose 41 points (+1.98%) to 2,109
The positive momentum spilled over into global markets: Germany's DAX Futures were up 190 points (+0.79%)
UK's FTSE Futures added 62 points (+0.70%)
Japan's Nikkei Index gained 529 points (+1.40%) to 38,252
South Korea's KOSPI rose 30 points (+1.14%)
Taiwan's Taiex Futures climbed 141 points (+0.67%)
India's GIFT Nifty was up 57 points (+0.23%) at 24,820 (adjusted). However, Hang Seng Futures in Hong Kong edged slightly lower by 24 points (-0.10%).
This rebound comes after a slightly negative close on Wall Street on the previous day: Dow Jones closed at 42,099, down 245 points (-0.58%)
Nasdaq ended at 19,101, lower by 98 points (-0.51%)
Analysts noted that the combination of strong AI earnings and legal checks on unilateral tariff powers has infused fresh optimism across equity markets globally.
News desk at BusinessUpturn.com
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