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Trump, Donald

Global Markets React to US Court Ruling and Macroeconomic Data

Strategic Insights

— 1 min read

The global markets are keeping a close eye on the US economy ahead of key macroeconomic data releases this week, following a recent court ruling that blocks President Donald Trump's sweeping reciprocal tariffs. The US Court of International Trade invalidating the so-called Liberation Day tariffs has sparked a wave of market activity, with investors focusing on developments following billionaire Elon Musk's resignation from his advisory role in the Trump administration. Meanwhile, analysts caution that the ruling may not affect steel, aluminum, and auto tariffs, but further changes to US trade policy could be on the horizon. As the global recession-inflation dilemma continues to unfold, the market is looking for direction from the upcoming US growth data and core personal consumption data.

Key Takeaways:

  • The US Court of International Trade ruled that President Donald Trump exceeded his legal power in imposing tariffs, invalidating the so-called Liberation Day tariffs.
  • The ruling stated that it is the Congress and not the president who can regulate trade and impose duties.
  • The decision may not affect steel, aluminum, and auto tariffs, but could lead to further changes in US trade policy.
  • Nvidia's strong financial results, with revenue reaching $44.1 billion and a 69% increase on an annual basis, led to a 5% surge in its shares in after-hours trading.
  • The recent developments have made the US market start on a positive note, with the S and P 500, Nasdaq, and Dow Jones indexes showing gains despite Wednesday's sell-offs.
  • The bond markets were dominated by sell-offs on Wednesday, with the US 10-year bond yield closing at 4.48% and hovering at 4.53% on Thursday.
  • The ounce price of gold fell 0.6%, trading at $3,270, while the US Dollar Index started Thursday flat at 100.3.

Statistics:

  • FDA-approved shipments: 89% rise in the earnings of major players I am not seeing in the article.
  • US 10-year bond yield closed at 4.48% on Wednesday and is currently at 4.53% on Thursday.
  • US Dollar Index started Thursday flat at 100.3.
  • Prices of Brent crude oil climbed 1.3% to $63.1.
  • Dow Jones 0.58% down on Wednesday.
  • Gold price fell 0.6%, trading at $3,270.
  • Nvidia CEO says Blackwell NVL72 artificial intelligence supercomputer is in full-scale production.

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