U.S. Assets and Asian Stocks Rise After Trump Tariff Freeze: U.S. assets rebounded Thursday after
The U.S. Court of International Trade ruled that President Donald Trump’s reciprocal tariffs were unlawful and suspended.
Strong earnings from Nvidia further boosted investor sentiment.

Contents:
Market Performance

Court Ruling

Eyes on the Supreme Court

U.S. Dollar

Nvidia

Tesla

Trump

Market Performance

Futures on the S&P 500 and Nasdaq 100 rose by 1.7% and 2.1%, respectively,
following the court ruling, which the Trump administration announced it would appeal.

Asian stocks also rose by 0.2%, with a 1.2% gain in Japanese shares.
Simultaneously, the U.S. dollar index climbed to its highest level in over a week,
the 10-year Treasury yield rose by two basis points, and the yen fell by 0.8% against the dollar.

In after-hours trading in New York, Nvidia shares jumped nearly 5%
After the company issued strong revenue guidance, boosting investor sentiment.

Court Ruling Offers Temporary Relief

The ruling gave investors a temporary breather after a wave of intense selling
triggered by Trump’s April 2 announcement of record-high tariffs to restructure the global trade system.

The move, along with Trump’s tax cut plans,
raised widespread concerns about the impact of a trade war on global growth.

Billy Leung, Chief Investment Strategist at Global X ETFs in Australia, said:

“The ruling is viewed more as a morale booster than a structural shift.”
It “removed a tactical risk ahead of the critical July deadline,
Though positioning data and sentiment indicators still reflect investor caution.”

Eyes Turn to the Supreme Court

Three judges from the U.S. Court of International Trade in Manhattan
ruled in favor of Democrat-led states and a group of small businesses,
arguing that Trump had misused emergency powers to justify specific tariffs.

The U.S. Supreme Court could hear the case, which could issue a final decision
ruling with far-reaching implications for trillions of dollars in global trade.

The ruling suspends most of Trump’s tariffs, including reciprocal tariffs imposed
on China and fentanyl-related tariffs on China, Canada, and Mexico.
However, it does not affect tariffs imposed under other authorities,
such as Section 232 and Section 301, which cover steel, aluminum, and automobiles.

Tim Waterer, Chief Analyst at KCM Trade in Sydney, commented:

“Any disruption to Trump’s tariff agenda is typically a positive sign for markets.”
“Risk assets like stocks are expected to respond to this development.”

Dollar Regains Some Momentum

The dollar rose by up to 0.4% during Thursday’s Asian trading.
It had dropped more than 7% from its February peak due to the trade war’s effect on investor confidence.

Mingzi Wu, a currency trader at StoneX Financial in Singapore, said:

“The dollar was heavily sold due to tariffs,
So even a slight improvement in the trade outlook justifies this rebound.”

Nvidia Lifts Markets, HP Drops

Nvidia CEO Jensen Huang reassured investors regarding the slowdown in China,
affirming that the AI-powered computing market is still set for “tremendous growth”,
backed by strong sales forecasts.

By contrast, shares of HP Inc. fell nearly 8% in extended trading after earnings forecasts missed expectations.
The company also lowered its annual guidance,
citing a weaker economy and continued U.S. tariffs on Chinese goods.

Tesla’s Robotaxi Launch and Chip Design Restrictions

Reports that the Trump administration plans to restrict chip design software exports
to China led to a sharp drop in Cadence Design Systems and Synopsys shares.

Meanwhile, reports indicated that Tesla plans to launch its self-driving “Robotaxi” service in Austin, Texas, on June 12.

Trump Defends His Strategy

Trump reacted angrily to claims that Wall Street believes
He has no intention of following through with his tariff threats, saying:

“That’s called negotiating,” explained, “I start with a very high number, then go lower as talks progress.”

U.S. Assets and Asian Stocks Rise After Trump Tariff Freeze

U.S. Assets and Asian Stocks Rise After Trump Tariff Freeze

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