The major U.S. index futures on the Dow Jones, S&P and Nasdaq are currently pointing to a higher open on Thursday, with stocks likely to move back to the upside after ending yesterday’s choppy trading session mostly lower.
Early buying interest is likely to be generated in reaction to news that a federal court blocked President Donald Trump’s “reciprocal tariffs” on imports from U.S. trade partners from going into effect.
The Court Of International Trade ruled Trump overstepped his authority to impose the tariffs by invoking emergency economic powers.
“The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,” the three-judge panel wrote.
The judges also said tariffs on Canada, Mexico and China related to drug trafficking “fail because they do not deal with the threats set forth in those orders.”
The Trump administration immediately appealed the ruling, which could end up being decided by the U.S. Supreme Court.
A positive reaction to earnings news from Nvidia (NASDAQ:NVDA) may also contribute to initial strength on Wall Street, with the AI darling surging by 5.3 percent in pre-market trading.
The jump by shares of Nvidia comes after the company reported fiscal first quarter results that exceeded analyst estimates on both the top and bottom lines.
After showing a lack of direction throughout much of the session, stocks moved to the downside in the latter part of the trading day on Wednesday.
The major averages all moved lower late in the day partly offsetting the strong gains posted in the previous session.
The Dow declined 244.95 points or 0.6 percent to 42,098.70, the Nasdaq fell 98.23 points or 0.5 percent to 19,100.94 and the S&P 500 slid 32.99 points or 0.6 percent to 5,888.55.
The choppy trading seen for most of the day came as traders seemed reluctant to make significant moves ahead of the release of earnings news from Nvidia.
Lingering uncertainty about President Donald Trump’s trade policies may also have kept some traders on the sidelines following recent volatility.
Trump’s threat to impose 50 percent tariffs on imports from the European Union triggered a steep drop by stocks last Friday only for his decision to delay the proposed tariffs to spark the rally on Tuesday.
Housing stocks turned in some of the market’s worst performances on the day, dragging the Philadelphia Housing Sector Index down by 2.4 percent.
Considerable weakness also emerged among utilities stocks, as reflected by the 1.6 percent loss posted by the Dow Jones Utility Average.
Steel, oil producer and transportation stocks also moved to the downside, while gold stocks moved higher despite a modest decrease by the price of the precious metal.
Dow Jones, S&P, Nasdaq, Trump Tariff Block By Federal Court May Generate Early Buying Interest
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