Court Blocks Trump's Tariffs, Markets React with Caution

A U.S. federal court's decision to block President Donald Trump's 'Liberation Day' tariffs sparked cautious reactions from Wall Street on Thursday. The move led to modest gains in the S&P 500 while the U.S. dollar retreated against the yen and Swiss franc, reflecting heightened market uncertainty.

Kathleen Brooks, Research Director at XTB, emphasized that the ruling did not eliminate tariff-related uncertainties and predicted that it would be unlikely to significantly boost consumer sentiment or business confidence. Meanwhile, Brad Bechtel from Jefferies noted the court's narrow focus on emergency authorization in the tariff plan, which allowed for other presidential actions on tariffs.

Market analysts underscore that the lingering uncertainty could lead to delays in investment and hiring, with the situation potentially escalating to a Supreme Court appeal. The fluctuating market conditions highlight the ongoing volatility and complexity facing investors amid global trade tensions.

(With inputs from agencies.)