NEW YORK — Wall Street breathed a sigh of relief Thursday as a U.S. court dealt a significant blow to President Donald Trump’s aggressive tariff policies, sparking a surge in stocks — led by tech giant Nvidia. But while the market’s early enthusiasm was strong, gains cooled as the trading day moved from Asia to New York.

The S&P 500 climbed 0.6% in morning trading, closing in on its all-time high from earlier this year. This rebound is notable, especially after the index had tumbled about 20% below that peak just last month, amid fears that the trade war might tip the U.S. economy into recession.

The Dow Jones Industrial Average rose 80 points (0.2%), while the Nasdaq, home to many tech stocks, led the charge with a 0.9% gain.

Court Ruling Challenges Trump’s Tariffs — But Uncertainty Remains

The positive momentum kicked off in Asia, where markets were first to react to Wednesday night’s ruling by the U.S. Court of International Trade in New York. The court found that the law Trump relied on — the 1977 International Emergency Economic Powers Act — does not give him the authority to impose the sweeping tariffs he ordered on imports worldwide.

However, the White House quickly appealed the ruling, and the legal battle is far from over. The court’s decision only affects some of Trump’s tariffs; others on steel, aluminum, and autos, imposed under different laws, remain in place.

Ulrike Hoffmann-Burchardi, chief investment officer at UBS Global Wealth Management, summed up the situation: “Trump is still able to impose significant and wide-ranging tariffs over the longer-term through other means.”

This ongoing uncertainty helped temper investor enthusiasm as the day progressed, especially in Europe and the U.S. But most analysts still viewed the ruling as a positive sign.

Brian Jacobsen, chief economist at Annex Wealth Management, said, “The bar is raised for President Trump to resurrect his tariffs. Markets see this as a better type of uncertainty than the previous ‘all-in’ tariff threats.”

Tech Stocks Shine — Nvidia and AI Firms Lead the Rally

On Wall Street, tech stocks were the star performers. Nvidia, a major player in the chip industry and a key driver of the AI boom, soared 4.9% after once again exceeding profit and revenue expectations for the quarter. Its strong performance was the biggest factor pushing the S&P 500 higher.

Artificial intelligence software company C3.ai also surged, jumping 29% after reporting better-than-expected profits and revealing a $350 million increase in a U.S. Air Force contract. The company posted $108.7 million in revenue for the quarter.

Meanwhile, cosmetics company E.l.f. Beauty rose 27.8%, buoyed by a strong earnings report and news it would acquire Hailey Bieber’s skincare brand, Rhode, in a $1 billion deal. Bieber, the model and wife of singer Justin Bieber, will take on a leadership role as chief creative officer and strategic advisor for the combined brands. Rhode generated $212 million in net sales over the past year.

Mixed Results for Retail and Bonds

Not all stocks enjoyed the good news. Best Buy’s shares dropped 7.8% despite beating profit estimates, as revenue fell short and the company lowered its full-year forecast. CFO Matt Bilunas noted the outlook assumes tariffs will remain unchanged and consumer spending patterns will not shift significantly.

In the bond market, Treasury yields softened slightly following mixed economic signals. The U.S. economy may have contracted less than previously thought in the first quarter, while more workers filed for unemployment benefits than expected last week.

Yields on the 10-year Treasury slipped to 4.44% from 4.47%, and the two-year yield, which is sensitive to Federal Reserve interest rate expectations, eased to 3.94% from 3.96%.

Global Markets React: Asia Surges, Europe Holds Steady

Across the globe, Asian markets responded enthusiastically. Japan’s Nikkei 225 jumped 1.9%, helping lead gains in the region.

South Korea’s Kospi also rallied 1.9%, buoyed not only by the tariff news but by a key interest rate cut from the Bank of Korea aimed at supporting the economy.

European markets, however, saw more modest movement. France’s CAC 40 inched up 0.1%, while Germany’s DAX fluctuated — starting positive but ending with a slight 0.2% dip.

What This Means Going Forward

The court’s decision marks a milestone in the ongoing trade saga but doesn’t close the book on tariffs. Legal challenges will continue, and Trump retains other tools to impose tariffs. Still, the ruling has eased some of the market’s fears about an all-out trade war’s economic fallout.

For now, investors are celebrating relief and putting their money behind companies leading innovation and growth — especially in the booming tech and AI sectors — while keeping a wary eye on the evolving political and economic landscape.

Quick Summary

A recent U.S. court ruling blocking many of Trump’s tariffs sparked a rally led by tech stocks like Nvidia, lifting markets closer to their highs. While legal uncertainties linger, the decision eased fears of an escalating trade war, giving investors hope for steadier growth. Mixed corporate earnings and cautious bond market moves show the economy remains complex, but the enthusiasm for tech innovation and global market rebounds are clear signs of optimism — at least for now.

Source: AP News – Nvidia leads Wall Street higher after a US court blocks many of Trump’s tariffs

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As the clock ticks down on sweeping new tariffs announced by former President Donald Trump, American consumers are racing to lock in purchases before prices jump—especially on big-ticket items like electronics and vehicles.

John Gutierrez, a photographer in Austin, Texas, had been eyeing a high-performance laptop for months. He needed something faster, with more storage, for his growing workload. But it wasn’t until Trump’s announcement of a 32% tariff on imports from Taiwan that Gutierrez finally pulled the trigger.

That same day, he placed a $2,400 order for the Taiwanese-made machine from a New York retailer.

“I thought I’d bite the bullet, buy it now, and that way I’ll have the latest tech without the tariff headaches,” Gutierrez said.

He’s not alone.

Across the country in Arlington, Virginia, Rob Blackwell and his wife were facing their own decision: replace their aging electric vehicle before tariffs impacted the cost—or risk paying more later. Their son needed a reliable ride for trips to college, and their daughter was about to start driving.

Blackwell had been tracking tariff news closely and had his eye on the new General Motors Optiq—an American brand, but manufactured in Mexico. That’s a potential target for new supply chain-related tariffs.

The couple moved fast, locking in a lease before the tariffs took effect.

“Suddenly it flips from a buyer’s market to a seller’s market very quickly,” Blackwell said. “It was just a simple rational decision. If this is what the government’s going to do, I need to get my act together.”

On the West Coast, Lee Wochner, CEO of a Burbank-based marketing firm, was also feeling the pressure. He wanted a more polished vehicle for client meetings but had kept pushing it off—until the tariff news hit.

That Thursday, he called his car broker with an urgent message:

“Ed, I need a car pronto and it’s got to happen by Sunday.”

By the weekend, Wochner had a brand-new Audi Q3 in his driveway. Acting quickly paid off—he estimates he saved about $4,300 by signing before the tariffs took effect.

“Some dealerships were already tearing up existing deals and trying to renegotiate, fearing they wouldn’t get enough new inventory at prices people could afford,” he noted.

Wochner believes this is just the beginning.

“If you need a new car and can still get a pre-tariff deal—go get it,” he warned. “Because who knows what next Wednesday might be like.”

Economists are warning that these tariffs could push up prices on a wide range of products—not just cars and laptops. Everyday goods from affected countries may see a significant price hike, which could slow down U.S. consumer spending and put pressure on the economy.

So for consumers still on the fence about a major purchase? The window might be closing fast.

Source: AP News – US consumers rush to buy big-ticket items before Trump’s tariffs kick in

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NEW YORK (AP) — U.S. stocks ended with mixed results on Wednesday as a recent inflation report raised expectations of an interest rate cut by the Federal Reserve next month.

The S&P 500 was nearly flat, inching up less than 0.1%, following its first decline since last week’s post-Election Day rally. Meanwhile, the Dow Jones Industrial Average gained 47 points, or 0.1%, and the Nasdaq composite slipped by 0.3%.

Bond Market Reaction and Rate-Cut Expectations

The bond market also showed mixed results. Consumer inflation increased from 2.4% to 2.6%, as economists expected. However, “core inflation” (which excludes volatile categories like food and energy) remained steady, an indicator of long-term trends that economists say is more predictive. This stability strengthened expectations for a December rate cut.

“Bang in-line core inflation leaves the Fed on track to cut rates in December,” said Lindsay Rosner, head of multi-sector fixed income at Goldman Sachs Asset Management.

Since September, the Federal Reserve has gradually reduced interest rates from a two-decade high to support the job market and bring inflation near its 2% target. After the last rate cut in October, traders now see an 80% chance of a third cut in December, according to CME Group data.

Following the inflation report, the yield on the two-year Treasury fell to 4.27% from 4.34% on Tuesday. The 10-year Treasury yield, influenced by long-term growth expectations, initially dropped but eventually rose slightly to 4.45%.

Uncertainty for 2025 and Potential Economic Changes

Looking forward, questions remain regarding the Fed’s plans for 2025. Previous Fed forecasts indicated potential further rate cuts into next year, but Donald Trump’s recent election victory may change that trajectory. Trump’s support for lower taxes, higher tariffs, and reduced regulation could lead to increased government debt, higher inflation, and accelerated economic growth, potentially altering rate cut plans.

“While lower rates can boost the economy and stock prices, they can also fuel inflation,” noted Scott Wren, senior global market strategist at Wells Fargo Investment Institute. “The market may be at an inflection point, with inflation potentially turning upward.”

Stock Highlights

On Wall Street, Rivian Automotive surged 13.7% after it shared more details about its joint venture with Volkswagen Group, which could reach a total size of $5.8 billion, exceeding prior estimates.

In contrast, Spirit Airlines stock fell 59.3% after the company filed for debt renegotiation, which, if successful, could affect shareholder equity but protect employees and customers.

By the end of trading, the S&P 500 rose 1.39 points to close at 5,985.38. The Dow gained 47.21 points, reaching 43,958.19, while the Nasdaq declined by 50.66 points to finish at 19,230.74.

Global Markets and Cryptocurrency Movements

Internationally, Japan’s Nikkei 225 dropped 1.7% following a surge in wholesale inflation to its highest level since July 2022. South Korea’s Kospi fell 2.6%, affected by a significant decline in Samsung Electronics shares.

In the cryptocurrency space, Bitcoin crossed above $93,000 before pulling back below $90,000. President Trump has embraced cryptocurrencies, pledging to make the U.S. the global crypto capital. Meanwhile, Dogecoin (favored by Tesla’s Elon Musk) also pared earlier gains after Trump appointed Musk to head the “Department of Government Efficiency,” or “DOGE” for short.

Source

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