S&P Rockets After Court Blocks Trump Tariffs

Stock futures advanced on early Thursday after a federal court knocked down President Donald Trump’s “reciprocal” tariffs. Solid earnings from artificial intelligence heavyweight Nvidia also buoyed the market.

Futures for the 30-stock index leaped 154 points, or 0.4%, to 42,325

Futures for the S&P 500 index gathered 52 points 5,954.75.

Futures for the NASDAQ sprinted 289.25 points, or 1.4%, to 21,670.25.

The U.S. Court of International Trade ruled on Wednesday night that Trump overstepped his authority when he imposed his “reciprocal” tariffs. The court ordered that the challenged tariff orders be vacated.

The April 2 announcement of Trump’s duties, the president’s changing approach toward trade policy, as well as inflation fears fueled by the prospect of the tariffs, roiled markets last month.

Some companies have also highlighted the levies and dialed back their forecasts, pointing to uncertainty around trade policy and the impact on the consumer.

For now, the judges’ decision appears to have allayed investors’ worries. However, this development can also raise concerns that U.S. trade negotiations with foreign countries could be drawn out into later in the year than previously anticipated.

Elsewhere, Nvidia shares jumped more than 5% in after-hours trading. The chipmaker exceeded expectations on the top and bottom lines in the first quarter, as its data center business recorded year-over-year growth of 73%.

In Japan, the Nikkei 225 index spiked 1.2% Thursday, while in Hong Kong, the Hang Seng jumped 1.4%.

Oil prices acquired 24 cents to $62.08 U.S. a barrel.

Gold prices picked up $4.40 to $3,299.30 U.S. an ounce.