Stock Market Performance Following Judicial Ruling on Trump Tariffs
On Thursday, major U.S. stock indices closed slightly higher due to NVIDIA’s post-earnings surge, as investors absorbed a late-afternoon judicial ruling that reinstated President Donald Trump’s most extreme tariffs.
However, Wall Street futures shifted direction and opened lower in electronic trading following a federal appeals court’s decision that overturned a trade court order to immediately block the tariffs. Despite this, a provisional reinstatement of Trump’s tariffs was upheld by another court.
As a result, Dow Jones futures fell 0.16%, S&P 500 futures dropped 0.27%, and Nasdaq futures decreased by 0.36%.
“Trump has already withdrawn most of these tariffs anyway, so these judicial rulings are just news,” said Adam Sarhan, CEO of 50 Park Investments.
- S&P 500: Gained 0.40%, closing at 5,912.17 points.
- Nasdaq Composite: Increased 0.39%, closing at 19,175.87 units.
- Dow Jones Industrial Average: Rose 0.28%, closing at 42,215.73 points.
Gold Rises Amidst Jobless Claims and Trump Tariff Legal Challenge
Gold prices surged during a volatile Thursday session, supported by weaker-than-expected jobless claims data and a judicial ruling that blocked most of President Donald Trump’s tariffs.
Spot gold’s price climbed 0.9% to $1,318.69 per ounce after hitting its lowest since May 20 earlier in the session.
U.S. gold futures also rose 0.6% to $1,343.90 per ounce, but fell 0.30% to $1,333.95 in electronic trading.
Weekly initial jobless claims in the U.S. increased more than anticipated, which did not please the market.
“Gold is rising due to the increase in initial jobless claims, which could signal a weakening labor market, prompting the Fed to cut interest rates more aggressively,” explained Tai Wong, an independent metals trader.
Gold is viewed as a hedge against uncertainty and inflation, often performing well in low-interest-rate environments as it does not produce interest.
Copper Trades Stable Following Federal Court’s Block on Trump Tariffs
Copper prices remained stable on Thursday, backed by market optimism after a federal court halted President Donald Trump’s plan to impose broad tariffs on most of the U.S.’s trading partners’ imports.
Ewa Manthey, ING’s metals analyst, stated that copper was supported as the court ruling boosted risk appetite, though she expects markets to remain volatile as the government challenges the decision.
- Copper three-month futures on the London Metal Exchange (LME) traded with little change at $9,567 per tonne.
- Since hitting a 17-month low of $8,105 in April after Trump imposed his reciprocal tariffs, copper has rebounded nearly 19%.
Key Questions and Answers
- What impacted the U.S. stock market on Thursday? NVIDIA’s post-earnings surge helped major indices close slightly higher, while investors absorbed a judicial ruling that reinstated Trump’s tariffs.
- Why did gold prices rise? Weaker-than-expected jobless claims data and a judicial ruling that blocked most of Trump’s tariffs supported gold’s price increase.
- How did copper perform amidst the legal challenge to Trump’s tariffs? Copper traded stably, backed by market optimism following the federal court’s decision to halt Trump’s broad tariffs on imports.
