Markets Rally as Federal Court Strikes Down Trump’s Tariff Policies, Nasdaq 100 Futures Climb 2%

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Futures Rally on Court Ruling

US equity futures rose sharply on Thursday following a decision by the US Court of International Trade that invalidated President Donald Trump’s reciprocal tariffs. The court found that the administration exceeded its authority under the International Emergency Economic Powers Act when it levied the tariffs and ordered the measures to be vacated and permanently enjoined.

Following the ruling, futures connected to the S&P 500 climbed 1.66%, while Nasdaq 100 contracts advanced 2% to 21,812. Dow Jones Industrial Average e-minis rose by over 500 basis points, equivalent to a 1.38% gain. This momentum is being attributed to investor optimism that the policy reversal could ease inflation fears and restore confidence in the trade outlook. Today’s rally follows Wednesday’s sluggish close, when the S&P 500, Nasdaq Composite, and Dow ended the session with losses.

White House spokesperson Kush Desai criticized the court’s decision, stating that trade imbalances had created a national emergency. Desai asserted that unelected judges should not be the ones determining how to effectively tackle a national crisis.

Tariff Uncertainty Continues to Hang Over Markets

The recent court ruling comes amid anxiety over the direction of US trade policy. The US tariff program, which was revealed by US President Donald Trump at the beginning of April, has been the source of widespread confusion and concern. Some companies lowered their earnings projections due to the rising cost of consumer goods and supply chain disruption caused by the duties. One of the latest decisions to rock markets was a 50% tariff set to affect EU goods, which was postponed to July 9th from its initial deadline of June 1st.

Despite this backdrop of uncertainty, all major indexes are on pace to end both the week and the month higher. Week-to-date, the Nasdaq has climbed by nearly 2%, while its monthly performance indicates a surge of 9.5% thanks to AI enthusiasm. The S&P 500 and the Dow are expected to end the week by rising over 1%, while their monthly gains should reach 5.7% and 3.5%, respectively.