Stock futures surged early Thursday morning after a federal trade court struck down a broad array of tariffs imposed during President Donald Trump’s administration, fueling optimism on Wall Street and sending tech stocks higher.
S&P 500 futures rose roughly 1%, while the Nasdaq-100 saw even sharper gains following a strong earnings report from Nvidia, whose booming chip sales helped reinforce investor confidence. Dow futures posted a more modest 0.5% gain.
The rally came on the heels of a late-Wednesday decision by the US Court of International Trade, which ruled that Trump lacked the legal authority under the International Emergency Economic Powers Act (IEEPA) of 1977 to enact a sweeping series of trade penalties.
The ruling voids many of the tariffs that triggered global retaliation and unsettled markets over the past several years.
The Trump administration said it plans to appeal the decision. “We are reviewing the court’s opinion and preparing our response,” a White House spokesperson said.
The case now heads to the US Court of Appeals for the Federal Circuit, and potentially the Supreme Court.
The decision represents a significant blow to one of Trump’s most aggressive uses of executive power and throws into disarray recent trade talks with key allies.
It also casts uncertainty over deals already reached with nations such as the UK and China.
Nvidia’s earnings added fuel to the rally, showing continued momentum despite the company being barred from selling certain products to China.
Investors took that as a sign that US tech firms remain resilient even amid trade headwinds.
In the bond market, US Treasury yields climbed, with the 10-year yield jumping above 4.5% — its highest level in over a week — as investors sold off safer assets in favor of stocks.
The court’s ruling covers a wide range of tariffs, including levies on fentanyl-related goods from Canada, Mexico and China, as well as reciprocal tariffs that had impacted nearly every major US trading partner.
However, it leaves intact duties implemented under other laws, including tariffs on autos, steel and aluminum imposed under Section 232 of the Trade Expansion Act of 1962, which permits actions on national-security grounds.
China praised the ruling and urged the US to permanently abandon the tariffs.
“We call on the United States to correct its mistake and lift all unilateral tariffs,” a Chinese Foreign Ministry spokesperson said.
International markets also moved higher, with notable gains in Japanese and South Korean stocks. European shares rose in early trading, while global bond prices fell.
Analysts say the court’s decision could give the US leverage in resetting stalled negotiations — or at least remove a key obstacle.
“We believe one reason bilateral negotiations had stalled was that US trading partners may have anticipated this outcome,” wrote Aniket Shah, a strategist at Jefferies.
Meanwhile, crypto markets rallied as well, with bitcoin rising to around $108,000. Vice President JD Vance reiterated Wednesday that the administration would continue to pursue crypto-friendly policies.
