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
22 minutes ago
- SBS Australia
'We will determine our defence budget': PM defies US calls to increase defence spending
'We will determine our defence budget': PM defies US calls to increase defence spending Published 2 June 2025, 3:25 am Prime Minister Anthony Albanese has resisted calls made by US Defence Secretary Pete Hegseth in Singapore to boost Australia's defence spending, ahead of his highly anticipated first face-to-face meeting with US President Donald Trump later this month. It comes amid backlash against the US doubling tariffs on steel and aluminium imports.
The Advertiser
31 minutes ago
- The Advertiser
Call for local steel mandate in face of Trump's tariffs
Australia is being urged to mandate the use of local steel in projects to protect the nation's workers and industry from Donald Trump's tariffs. The US president has announced a plan to double levies on foreign steel from 25 per cent to 50 per cent in coming days. Australian goods exported to the US are already subject to a 10 per cent baseline tariff. Australia must adopt strong domestic protections, says union secretary Arthur Rorris, whose South Coast Labour Council includes workers from BlueScope's Port Kembla Steelworks. "If we don't mandate the use of our steel for our own uses, we will become the path of least resistance for the glut of global steel," he told AAP. "If you don't defend your own markets, others will take them." Labor could not just talk about a future made in Australia but had to provide the funds to back it, Mr Rorris said. He said the government needed to understand the transactional nature of the Trump administration and use whatever leverage it had to get a better deal. Treasurer Jim Chalmers in February said quotas for Australian steel were under consideration. Australian Steel Association chief executive David Buchanan said he was yet to see dumping of cheap foreign steel into Australia. "We do have a very strong system to protect the industry from dumped materials," he told ABC radio. Mr Buchanan said the US president's decision would not have a major impact on Australian industry, but would result in increased prices for American consumers. Prime Minister Anthony Albanese branded the move an act of "economic self-harm" and is expected to sit down with the American leader on the sidelines of the G7 summit in Canada later in June. Mr Trump's deepening trade war is considered destabilising to the framework that has benefited middle powers such as Australia. Announcing the steel and aluminium tariffs earlier this year, Mr Trump committed to imposing them "without exceptions or exemptions" in a bid to help shield domestic industries. The Albanese government has ruled out retaliatory tariffs against the US as it tries to secure an exemption for Australian goods. But Australia could take the US to the World Trade Organisation, as it did with China over punitive trade sanctions imposed during the COVID-19 pandemic as diplomatic relations hit a low. Trade Minister Don Farrell has said the government would continue to "coolly and calmly" argue its case for the removal of the tariffs. Canada has taken the US to the umpire, which determines global trade rules. Senator Farrell is travelling to France, leading Australia's delegation to the OECD Ministerial Council Meeting. On the sidelines of that meeting, Australia will host an informal meeting of World Trade Organisation ministers to discuss the importance of an open, rules-based global trading system. In Mr Trump's first term, the US president gave Australia exemptions on the argument the US has a trade surplus with its ally. Australia is being urged to mandate the use of local steel in projects to protect the nation's workers and industry from Donald Trump's tariffs. The US president has announced a plan to double levies on foreign steel from 25 per cent to 50 per cent in coming days. Australian goods exported to the US are already subject to a 10 per cent baseline tariff. Australia must adopt strong domestic protections, says union secretary Arthur Rorris, whose South Coast Labour Council includes workers from BlueScope's Port Kembla Steelworks. "If we don't mandate the use of our steel for our own uses, we will become the path of least resistance for the glut of global steel," he told AAP. "If you don't defend your own markets, others will take them." Labor could not just talk about a future made in Australia but had to provide the funds to back it, Mr Rorris said. He said the government needed to understand the transactional nature of the Trump administration and use whatever leverage it had to get a better deal. Treasurer Jim Chalmers in February said quotas for Australian steel were under consideration. Australian Steel Association chief executive David Buchanan said he was yet to see dumping of cheap foreign steel into Australia. "We do have a very strong system to protect the industry from dumped materials," he told ABC radio. Mr Buchanan said the US president's decision would not have a major impact on Australian industry, but would result in increased prices for American consumers. Prime Minister Anthony Albanese branded the move an act of "economic self-harm" and is expected to sit down with the American leader on the sidelines of the G7 summit in Canada later in June. Mr Trump's deepening trade war is considered destabilising to the framework that has benefited middle powers such as Australia. Announcing the steel and aluminium tariffs earlier this year, Mr Trump committed to imposing them "without exceptions or exemptions" in a bid to help shield domestic industries. The Albanese government has ruled out retaliatory tariffs against the US as it tries to secure an exemption for Australian goods. But Australia could take the US to the World Trade Organisation, as it did with China over punitive trade sanctions imposed during the COVID-19 pandemic as diplomatic relations hit a low. Trade Minister Don Farrell has said the government would continue to "coolly and calmly" argue its case for the removal of the tariffs. Canada has taken the US to the umpire, which determines global trade rules. Senator Farrell is travelling to France, leading Australia's delegation to the OECD Ministerial Council Meeting. On the sidelines of that meeting, Australia will host an informal meeting of World Trade Organisation ministers to discuss the importance of an open, rules-based global trading system. In Mr Trump's first term, the US president gave Australia exemptions on the argument the US has a trade surplus with its ally. Australia is being urged to mandate the use of local steel in projects to protect the nation's workers and industry from Donald Trump's tariffs. The US president has announced a plan to double levies on foreign steel from 25 per cent to 50 per cent in coming days. Australian goods exported to the US are already subject to a 10 per cent baseline tariff. Australia must adopt strong domestic protections, says union secretary Arthur Rorris, whose South Coast Labour Council includes workers from BlueScope's Port Kembla Steelworks. "If we don't mandate the use of our steel for our own uses, we will become the path of least resistance for the glut of global steel," he told AAP. "If you don't defend your own markets, others will take them." Labor could not just talk about a future made in Australia but had to provide the funds to back it, Mr Rorris said. He said the government needed to understand the transactional nature of the Trump administration and use whatever leverage it had to get a better deal. Treasurer Jim Chalmers in February said quotas for Australian steel were under consideration. Australian Steel Association chief executive David Buchanan said he was yet to see dumping of cheap foreign steel into Australia. "We do have a very strong system to protect the industry from dumped materials," he told ABC radio. Mr Buchanan said the US president's decision would not have a major impact on Australian industry, but would result in increased prices for American consumers. Prime Minister Anthony Albanese branded the move an act of "economic self-harm" and is expected to sit down with the American leader on the sidelines of the G7 summit in Canada later in June. Mr Trump's deepening trade war is considered destabilising to the framework that has benefited middle powers such as Australia. Announcing the steel and aluminium tariffs earlier this year, Mr Trump committed to imposing them "without exceptions or exemptions" in a bid to help shield domestic industries. The Albanese government has ruled out retaliatory tariffs against the US as it tries to secure an exemption for Australian goods. But Australia could take the US to the World Trade Organisation, as it did with China over punitive trade sanctions imposed during the COVID-19 pandemic as diplomatic relations hit a low. Trade Minister Don Farrell has said the government would continue to "coolly and calmly" argue its case for the removal of the tariffs. Canada has taken the US to the umpire, which determines global trade rules. Senator Farrell is travelling to France, leading Australia's delegation to the OECD Ministerial Council Meeting. On the sidelines of that meeting, Australia will host an informal meeting of World Trade Organisation ministers to discuss the importance of an open, rules-based global trading system. In Mr Trump's first term, the US president gave Australia exemptions on the argument the US has a trade surplus with its ally. Australia is being urged to mandate the use of local steel in projects to protect the nation's workers and industry from Donald Trump's tariffs. The US president has announced a plan to double levies on foreign steel from 25 per cent to 50 per cent in coming days. Australian goods exported to the US are already subject to a 10 per cent baseline tariff. Australia must adopt strong domestic protections, says union secretary Arthur Rorris, whose South Coast Labour Council includes workers from BlueScope's Port Kembla Steelworks. "If we don't mandate the use of our steel for our own uses, we will become the path of least resistance for the glut of global steel," he told AAP. "If you don't defend your own markets, others will take them." Labor could not just talk about a future made in Australia but had to provide the funds to back it, Mr Rorris said. He said the government needed to understand the transactional nature of the Trump administration and use whatever leverage it had to get a better deal. Treasurer Jim Chalmers in February said quotas for Australian steel were under consideration. Australian Steel Association chief executive David Buchanan said he was yet to see dumping of cheap foreign steel into Australia. "We do have a very strong system to protect the industry from dumped materials," he told ABC radio. Mr Buchanan said the US president's decision would not have a major impact on Australian industry, but would result in increased prices for American consumers. Prime Minister Anthony Albanese branded the move an act of "economic self-harm" and is expected to sit down with the American leader on the sidelines of the G7 summit in Canada later in June. Mr Trump's deepening trade war is considered destabilising to the framework that has benefited middle powers such as Australia. Announcing the steel and aluminium tariffs earlier this year, Mr Trump committed to imposing them "without exceptions or exemptions" in a bid to help shield domestic industries. The Albanese government has ruled out retaliatory tariffs against the US as it tries to secure an exemption for Australian goods. But Australia could take the US to the World Trade Organisation, as it did with China over punitive trade sanctions imposed during the COVID-19 pandemic as diplomatic relations hit a low. Trade Minister Don Farrell has said the government would continue to "coolly and calmly" argue its case for the removal of the tariffs. Canada has taken the US to the umpire, which determines global trade rules. Senator Farrell is travelling to France, leading Australia's delegation to the OECD Ministerial Council Meeting. On the sidelines of that meeting, Australia will host an informal meeting of World Trade Organisation ministers to discuss the importance of an open, rules-based global trading system. In Mr Trump's first term, the US president gave Australia exemptions on the argument the US has a trade surplus with its ally.
Sky News AU
34 minutes ago
- Sky News AU
Trump administration urges allies to ‘spend more money' on defence
USSC Foreign Policy & Defence Director Professor Peter Dean discusses the Trump administration's view that its allies should 'spend more money' on defence. Prime Minister Anthony Albanese has rejected America's push for Australia to raise its defence spending. US Defence Secretary Pete Hegseth is pushing the Australian federal government to increase spending on defence to 3.5 per cent of GDP.
