U.S. stock futures are higher after the Federal Court of International Trade blocked President Donald Trump’s reciprocal tariffs.
Trump has overstepped in invoking the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs, the court said. Trump also was wrong to use trade deficits as a justification for declaring a national emergency, it said.
The Justice Department quickly filed an appeal. Ultimately, the Supreme Court could end up deciding the case.
AT 6:55 a.m. ET, futures tied to the blue-chip Dow added 0.55%, while broad S&P 500 futures rose 1.15% and tech-heavy Nasdaq futures jumped 1.67%.
“The ruling will obviously throw into disarray the administration’s push to quickly seal trade ‘deals’ during the 90-day pause from tariffs that have now been declared to be illegal,” wrote Paul Ashworth, chief North America economist at Capital Economics, in a note. “Other countries will wait and see whether a higher court is willing to reverse this ruling.”
Nvidia impresses
Nvidia’s results from the first three months of its fiscal year topped analysts’ estimates, even with U.S. export curbs on China.
“In our view, Nvidia remains the premier artificial intelligence stock and the dominant leader in GPUs.” said Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report.
GPUs, or graphics processing units, are processors that handle complex calculations needed to render images and videos, especially those with 3D graphics.
Corporate news
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C3.ai’s results in the last three months of its fiscal year topped analysts’ forecasts.
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Salesforce topped Street predictions for fiscal first-quarter results. The sales and customer service software maker also boosted its full-year outlook.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
This article originally appeared on USA TODAY: Stock futures higher after court blocks Trump’s reciprocal tariffs
