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CBS News
5 days ago
- Business
- CBS News
Stocks rise after U.S. trade court blocks Trump's emergency tariffs
Stocks are up on Thursday following an early morning boost after a U.S. court blocked many of President Donald Trump's sweeping tariffs. But the gains got less strong as trading progressed from Asia to New York. The S&P 500 rose 26 points, or 0.5% as of 1:03 p.m. EST. The Dow Jones Industrial Average was up 26 points, or 0.06%, the Nasdaq composite was .6% higher. "Investors are keeping their enthusiasm in check for a variety of reasons," Adam Crisafulli, head of Vital Knowledge, said in a research. "To start, the tariff drama isn't over – Trump has other legal avenues to pursue an aggressive tariff agenda, and investors expect he will utilize them. In addition, the popularity of the "TACO Trade" perspective has caused the tariff narrative to ease dramatically in the last couple of weeks, to the point where many people already assumed the overall burden won't be much worse than the 10% baseline when all is said and done," he said. Gains were bigger in Asia, where markets had the first chance to react to the ruling issued late on Wednesday by the U.S. Court of International Trade in New York. It said that the 1977 International Emergency Economic Powers Act that Trump cited for ordering massive increases in taxes on imports worldwide does not authorize the use of tariffs. Tariff threat still "very real" The White House immediately appealed, and the long-term outcome of legal disputes over tariffs remains uncertain. The court's ruling also affects only some of Trump's tariffs, not those on foreign steel, aluminum and autos, which were invoked under a different law. Trump "is still able to impose significant and wide-ranging tariffs over the longer-term through other means," according to Ulrike Hoffmann-Burchardi, chief investment officer of global equities at UBS Global Wealth Management. That uncertainty helped dampen the excitement in financial markets as trading headed through Europe into the United States, where the gains were more modest. "Yesterday's U.S. court ruling has added yet more uncertainty to the EU-US trade relationship and at face value has weakened President Trump's position. But the risk of tariffs remains very real," John Higgins, chief market economist with Capital Economics, said in a report. Until the appeal is resolved, there will also be some added level of uncertainty for U.S. businesses, some economists said on Thursday. The trade court's decision "to suspend newly imposed tariffs on China, Canada, and Mexico, along with the universal 10% duties, "offers potential short-term tariff relief," but also "introduces greater ambiguity around the future direction of U.S. trade policy, particularly as the ruling faces appeal," Gregory Daco, EY chief Economist, said in a research note. On Wall Street, tech stocks led the way after Nvidia once again topped analysts' expectations for profit and revenue in the latest quarter. The chip company has grown into one of the U.S. stock market's largest and most influential stocks because of the frenzy around artificial-intelligence technology, and its 5.9% rise was the strongest force by far moving the S&P 500 upward. C3ai, an AI application software company, jumped 25.6% after it reported stronger profit than analysts expected for its latest quarter, while also saying the U.S. Air Force increased the top end of the range for how much its contract could be worth by $350 million to $450 million. Its total revenue grew to $108.7 million last quarter. In the bond market, Treasury yields were holding relatively steady following some mixed reports on the economy. One said that the U.S. economy likely shrunk by less in the first three months of the year than earlier estimated. Another said slightly more U.S. workers applied for unemployment benefits last week than economists expected. The yield on the 10-year Treasury eased to 4.45% from 4.47% late Wednesday. The two-year Treasury yield, which moves more closely with expectations for where the Federal Reserve will take overnight interest rates, was holding at 3.96%, where it was late Wednesday. The moves in Europe were more muted. France's CAC 40 rose 0.3%, and Germany's DAX was close to flat. ___ AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
CNBC
22-05-2025
- Business
- CNBC
Earnings have been the biggest positive for the markets, says Vital Knowledge's Crisafulli
Adam Crisafulli, Vital Knowledge, and Nicole Webb, Wealth Enhancement Group, joins 'Closing Bell Overtime' to talk the day's market action.
Yahoo
20-05-2025
- Business
- Yahoo
China urges U.S. to act 'responsibly' after Moody's downgrade
-- China has urged the United States to adopt responsible economic policies in the wake of Moody's decision to strip the U.S. of its last triple-A credit rating. Speaking at a press briefing Monday, a spokesperson for China's foreign ministry called on Washington to take responsible policy measures to maintain the stability of the international financial and economic system and safeguard the interests of investors, Reuters reported. The comments come after Moody's downgraded the U.S. from 'AAA' to 'Aa1', citing mounting fiscal deficits and rising interest costs. The agency warned that continued political gridlock and a lack of fiscal discipline pose long-term risks to the country's financial stability. 'The first thought to come to mind is: what took you so long?' analysts at Vital Knowledge wrote, noting that Fitch made a similar downgrade in 2023 and S&P acted as far back as 2011. They pointed to the growing U.S. deficit—now unusually high for a full-employment, peacetime economy—as a key justification. Moody's had maintained a perfect rating on U.S. debt since 1917, making the downgrade historically significant. While the impact on Treasury markets may be limited in the short term, the symbolic loss of credibility raises fresh questions about U.S. fiscal governance. U.S. stock futures fell early Monday as investors reacted to Moody's decision to downgrade the nation's credit rating. As of 04:00 ET (08:00 GMT), Dow Jones Futures futures were down 398 points, or 0.9%. S&P 500 Futures dropped 70 points, or 1.2%, while Nasdaq 100 Futures slid 306 points, or 1.4%. Related articles China urges U.S. to act 'responsibly' after Moody's downgrade 'From Tariff Man to Global Salesman' Moody's downgrades U.S. Sovereign Credit Rating amid fiscal pressures Sign in to access your portfolio
CBS News
19-05-2025
- Business
- CBS News
Stock futures fall after Moody's downgrades the U.S. credit rating
Stock futures declined before the opening bell Monday after the U.S. credit rating was downgraded by Moody's Ratings on Friday. As of 8:30 a.m. EST, S&P 500 futures had shed 65 points, or 1.1%, while Dow Jones Industrial Average futures declined 252 points or 0.6%. The tech-heavy Nasdaq Composite futures dropped 1.5%. The U.S. dollar also weakened, while Treasury yields rose. News of a 90-day pause in high tariff rates between the U.S. and China bolstered investor confidence last week, leading to a rally on Wall Street. But Moody's announcement of a credit downgrade late Friday threatened take some wind out of investors' sails. In cutting its U.S. credit rating from Aaa to Aa1, Moody's forecast that federal deficits will widen to almost 9% of the U.S. economy by 2035, up from 6.4% in 2024, driven mostly by higher interest payments on debt, growing entitlement spending and low revenue generation from taxes. Moody's was the last of the three major credit rating agencies to downgrade the nation's government debt. Moody's decision was "hardly surprising," said Adam Crisafulli, equities analyst and head of Vital Knowledge, in a research note. "But it did serve to remind markets, which had become quite complacent and expensive in the last few weeks, that there is a serious fiscal problem that needs to be reckoned with (in addition to the existing tariff problem)," he added. In addition to reflecting tariff concerns, Moody's downgrade also highlighted apprehension that the reconciliation bill in Congress, dubbed the "big, beautiful bill" by President Trump, could further fuel U.S. debt, said Oxford Economics analyst John Canavan in a research note. The bill is likely to increase the statutory debt limit by $4 trillion, according to the Bipartisan Policy Center. Concerns over debt come as consumer confidence continues to slip. The University of Michigan's consumer sentiment index released last week showed consumer confidence dipped again in May as Americans fret over the trade war's impact on inflation. Mary Cunningham Mary Cunningham is a reporter for CBS MoneyWatch. Before joining the business and finance vertical, she worked at "60 Minutes," and CBS News 24/7 as part of the CBS News Associate Program. contributed to this report.
CNBC
15-05-2025
- Business
- CNBC
Here's why Vital Knowledge's Crisafulli doesn't see this week's market rally as a buying opportunity
Adam Crisafulli, Vital Knowledge founder, joins 'Closing Bell Overtime' to discuss the day's market action, whether this week's rally is a buying opportunity, and more.
