Global markets surged heavily, on Thursday, following a U.S. court blocked sweeping tariffs proposed under former President Donald Trump’s trade strategy, easing fears of escalating protectionism. Investor sentiment was further lifted by strong earnings from chipmaker Nvidia, which helped power a broad rally in technology stocks.
The decision from the U.S. Court of International Trade came after legal challenges by businesses and several state governments. The court found that the proposed tariffs violated the constitutional provision that grants spending and taxation authority to Congress. Though the White House moved to appeal the ruling, investors welcomed the immediate pause in what had been seen as a renewed risk to global trade.
Major export-oriented Asian economies saw the strongest gains. Markets in Japan and South Korea, both of which faced direct exposure to the proposed tariffs, surged more than one percent. Technology and automotive stocks led the advances, buoyed by expectations that trade disruptions would now be less severe. The rally in Seoul was further supported by a surprise interest rate cut by South Korea’s central bank, aimed at boosting domestic demand and investment.
Positive momentum carried through to other regional markets, with Hong Kong, Shanghai, Sydney, Taipei, and Manila all ending the day in positive territory. U.S. stock futures also climbed, with futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq each gaining over one percent, suggesting a strong open on Wall Street.
The relief over trade policy was reinforced by Nvidia’s latest earnings report, which exceeded market expectations. The semiconductor giant reported a quarterly profit of $18.8 billion on $44.1 billion in revenue, citing continued strong demand for chips used in artificial intelligence applications. The company also issued an optimistic forecast for the current quarter, despite headwinds from tightened U.S. export controls on advanced chip technologies.
Nvidia’s results renewed investor confidence in the tech sector, which has recently come under pressure amid regulatory scrutiny and global supply concerns. The earnings report helped drive a broad-based rally in technology shares, contributing significantly to the global equity surge.
Thursday’s gains followed weeks of volatile market behavior, driven by fears of a new phase in the U.S.-led trade war. The court’s ruling provided a measure of stability and was widely interpreted as a signal that unilateral executive actions on trade may face increasing legal constraints. Investors saw the decision as reinforcing the role of institutional checks and balances in shaping economic policy.
The broader implications of the court’s intervention were also felt in other asset classes. Gold, typically a safe-haven during periods of uncertainty, declined as risk appetite returned.
The Japanese yen weakened against the U.S. dollar, reflecting a move by traders away from defensive positions. These shifts indicated growing market confidence that the worst-case trade scenarios might be avoided. Oil prices continued to rise, extending gains from the previous session. The climb was driven partly by expectations ahead of an upcoming OPEC meeting, where production levels are set to be discussed. Geopolitical tensions involving Russia and Iran added further momentum to oil markets, which have remained sensitive to signs of potential supply disruptions. While the ruling against the tariffs offered immediate relief, analysts cautioned that risks remain. The White House appeal means uncertainty over trade policy could resurface, and the global economic outlook continues to depend on developments in both fiscal and geopolitical arenas. Still, the market response on Thursday underscored the influence of institutional decisions and corporate performance in shaping investor behavior.
The alignment of a judicial check on executive authority and upbeat corporate earnings provided a rare moment of clarity in an otherwise turbulent period. Market participants appeared to recalibrate their strategies around themes of legal oversight, stable policy frameworks, and the continued strength of sectors like artificial intelligence and advanced manufacturing. As equities regained ground, Thursday’s rally offered a snapshot of how swiftly investor mood can shift when regulatory clarity emerges alongside resilient economic signals. With macroeconomic headwinds still in play, markets are likely to remain sensitive to new developments. However, the events of the day suggested that institutional guardrails and strong fundamentals can still inspire confidence amid ongoing global uncertainty.
