Stock markets soar as US court blocks Trump tariffs & Nvidia beats estimates
There was yet more good news for investors last night as Nvidia beat forecasts in its latest earnings, while a US court struck down Trump’s sweeping tariffs.
Markets soar as US judges block tariffs
One of the less well noticed aspects of this US administration has been how many of its signature policies have been blocked by the courts. Donald’s Trump’s 2nd of April tariffs have become the most high-profile of these measures to be struck down by judges.
The US Court of International Trade has ruled that the president exceeded his authority in imposing sweeping tariffs. It means that the flagship tariff policy, which saw huge levies imposed on trading partners, was derailed for the time being.
It is important to note that the ruling doesn’t mean that the threat of tariffs has receded entirely. There are other ways that charges can be imposed, and the sector tariffs on cars and steel remain in place. The US administration is bound to appeal the decision too, which means investors aren’t completely free of worry yet.
But for markets, the news has been taken in a positive light. US futures rallied after hours, and Asian markets made gains too. European markets have opened higher, though they trimmed their initial gains.
US markets are expected to open firmly higher this afternoon. Given the outflow of funds from US markets in April, we can expect further upside in American stocks for the time being, as the news provides a further reason for investors to continue to allocate capital back to the US.
Nvidia soars after earnings
Jensen Huang has done it again. Another beat from Nvidia on revenue and earnings delivered even more positive news for the US stock market. Even the restrictions on exports to China failed to put more than a dent the company’s progress overall.
Artificial intelligence (AI) demand remains strong, and this is the cornerstone of the bullish narrative for Nvidia. The stock is up more than 30% from its April lows, but last night’s earnings and the court ruling appear to provide the foundation for further gains.
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