Surprise Court Ruling Sparks Market Rally

A U.S. Court of International Trade decision striking down President Trump's tariffs as 'contrary to law' led to a surge in global markets early Thursday. The court's unanimous ruling by judges appointed by Trump, Obama, and Reagan surprised investors, leading to optimism about a calmer economic policy environment.

The White House swiftly announced plans to appeal the decision to the U.S. Court of Appeals for the Federal Circuit and potentially to the Supreme Court. However, it remains uncertain when a resolution will be reached, leaving many trade negotiations on hold.

Investors responded positively, with S&P 500 and Nasdaq futures rising significantly. As the tariffs' future becomes uncertain, the mixed implications on economic growth and inflation remain topics of discussion among Fed officials.

(With inputs from agencies.)