US assets got a boost Thursday after a vast majority of President Donald Trump’s global tariffs were deemed illegal and blocked by the US trade court. Upbeat earnings from Nvidia Corp. also lifted investor sentiment. Contracts for the S&P 500 and Nasdaq 100 gained 1.6% and 2% after the ruling, which the Trump administration will appeal. Asian shares gained 0.7%, with Japanese and South Korean stocks rising 1.7%. The yen weakened and the dollar strengthened, with a gauge of the greenback rising to the highest level in more than a week. The yield on the 10-year US Treasuries rose 2 basis points. Nvidia surged almost 5% in post-market trading in New York after the chipmaker delivered a solid revenue forecast. While investors sought more clarity on the impact from the court decision, the ruling provided a temporary reprieve after global financial markets were hit by a sweeping selloff from Trump’s April 2 announcement of the levies. The century-high tariffs and the president’s plans to cut taxes spooked investors, who caught on to a “Sell America” trade on concerns the trade war will hurt global growth. A panel of three judges at the US Court of International Trade in Manhattan issued a ruling Wednesday siding with Democratic-led states and a group of small businesses that argued Trump had wrongfully invoked an emergency law to justify some of his levies. The US Supreme Court may ultimately have the final say in the high-stakes case that could impact trillions of dollars in global trade. The order suspends the vast majority of Trump’s tariffs — his global flat tariff, elevated rates on China and others, and his fentanyl-related tariffs on China, Canada and Mexico are all suspended by the ruling. Other tariffs imposed under different powers, like so-called Section 232 and Section 301 levies, are unaffected, and include levies on steel, aluminum and automobiles. The greenback strengthened as much as 0.4% Thursday. The dollar has tumbled more than 7% since a February high as the trade war badly hurt sentiment on US assets and fueled a re-think on the world’s reliance on the US currency. Spreads on Asian investment-grade dollar bonds tightened about 1 basis point on Thursday, according to traders. The yield premiums had already compressed to a two-month low earlier on Wednesday, mirroring a move in global peers, as fears about a global trade war eased. Separately, Nvidia Chief Executive Officer Jensen Huang soothed investor fears about a China slowdown by delivering a solid sales forecast, saying that the AI computing market is still poised for “exponential growth.” While Nvidia boosted optimism, HP Inc. dropped about 8% in extended trading after the company’s profit outlook fell short of estimates and it cut the annual earnings forecast, pointing toward a weaker economy and continuing costs from US tariffs on goods from China. News reports that the Trump administration is moving to restrict the sale of chip design software to China spurred a plunge in Cadence Design Systems Inc. and Synopsys Inc. Meantime, Tesla Inc. was said to begin its robotaxi service in Austin on June 12. Nvidia’s outlook sent chip stocks and suppliers in Asia higher, including Advantest Corp., SK Hynix Inc. and Foxconn Industrial. The advances in South Korea sent the local index to the highest level in nine months. China’s chip software stocks jumped after the Trump administration told some US semiconductor design application makers to stop shipments to the country. The Commerce Department’s Bureau of Industry and Security sent letters to at least some of the leading providers of electronic design automation (EDA) products Friday telling them to halt shipments to Chinese customers, people familiar with the matter said. US After Hours NVDA +5%, VEEV +15.7%, AI +10.7% higher on earnings; HPQ -13.3%, S -12.2%, PSTG -3.7% lower on earnings
Nikkei +1.82% Hang Seng +1.09% CSI +0.66% Shanghai +0.73% Shenzen +1.38%
Eur$ 1.1247 CNH 7.1984 CNY 7.1992 JPY 145.75 GBP 1.3438 CHF 0.8321 RUB 79.8876 TRY 39.1080 WTI$ 62.72 +1.42% Gold 3,272 -0.50% BTC 107,600 +0.25% ETH 2,731 +3.63%
S&P +1.67% Nasdaq +2.01% EuroStoxx +1.23% FTSE +0.80% Dax +1.05% SMI
Macro :
- EU to Cut Carbon Auction Volume by 276 Million Allowances
- Greenlight Capital’s Einhorn Is Net Long Europe, Neutral on US
- China Credit Getting Fired Up as Government Bonds Lose Mojo
Keep an eye on :
Keep an eye on :
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