Asian shares and Wall Street futures rallied Thursday after a U.S. court blocked President Donald Trump’s proposed "Liberation Day" tariffs, boosting market sentiment and sending the dollar higher against safe haven currencies. The Court of International Trade in Manhattan ruled that Trump exceeded his constitutional authority by imposing broad tariffs on countries with trade surpluses against the U.S., sparking optimism among investors.
The White House quickly appealed the ruling, with potential escalation to the Supreme Court. Despite uncertainty, markets responded positively. Japan’s Nikkei jumped 1%, while South Korea’s Kospi rose 0.8%. MSCI’s Asia-Pacific index excluding Japan also edged higher as Chinese markets awaited opening.
S&P 500 futures climbed 1.5%, and Nasdaq futures gained 1.8%, supported by strong earnings from Nvidia (NASDAQ:NVDA). The chipmaker surpassed sales expectations and projected strong future revenues, pushing its shares up 4.4% in after-hours trading.
However, tension with China continued to mount. The Financial Times reported the U.S. ordered a halt to semiconductor design software sales to Chinese firms, while the New York Times noted Washington suspended sales of certain critical technologies, including jet engines and advanced chemicals.
The dollar surged, rising 0.8% against the Swiss franc to 0.336 and 0.6% against the yen to 145.76. The euro dipped 0.5% to $1.1230. Treasury yields rose, with the 10-year yield reaching 4.51%, as investors further pushed back expectations for a Federal Reserve rate cut. July odds fell to 22%, with September now at 60%.
Gold slipped 0.9% to $3,259 an ounce. Oil prices extended gains as OPEC+ maintained output levels and the U.S. restricted Chevron (NYSE:CVX) from exporting Venezuelan crude, lifting U.S. crude to $62.31 per barrel.


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