Wall Street Futures rise on court ruling against Trump tariffs and Nvidia Q1 cheer

Wall Street Futures aoar as Trump-Era tariffs ruled ‘Illegal’

Wall Street futures rallied sharply on May 29 following US trade court's ruling that declared President Trump’s sweeping global tariffs as 'illegal', triggering a risk on sentiment. The ruling, which blocks the imposition of reciprocal tariffs can still be appealed by the Trump administration in a federal court.

As of 5:30 pm, the Dow futures had climbed 250 points, while S&P 500 and Nasdaq futures jumped 70 points and 350 points, respectively. The move comes alongside a surge in chipmaker Nvidia’s stock, which rose 5% in extended trade after the company’s quarterly earnings beat Street estimates and met guidance expectations despite ongoing US export restrictions to China.

The twin tailwinds - judicial pushback against protectionist trade policies and robust tech earnings - lifted investor mood across asset classes. Asian markets too were higher while oil prices gained, helped by a softer Dollar Index near 100.

Gold, meanwhile, extended its losing streak into a fourth day as safe-haven demand waned.

The rally is also underpinned by the Federal Reserve’s latest meeting minutes, which reaffirmed policymakers’ cautious stance. Fed officials emphasized the need to observe incoming data before altering the current policy stance, keeping rate-cut expectations tempered but alive.

However, geopolitical tensions simmered in the backdrop. In a fresh escalation of US-China ties, Secretary of State Marco Rubio announced plans to 'aggressively' revoke visas of Chinese students, particularly those linked to the Chinese Communist Party or pursuing sensitive fields. The crackdown may strain educational and diplomatic exchanges further, especially given that Chinese students were the second-largest international student group in the US in 2024, just behind India.

Even so, for now, market participants appear focused on the bullish catalysts: a weakening case for trade protectionism, resilient US corporate earnings, and central bank prudence. Focus is on how the Trump administration responds to the tariff ruling — and how long the rally can last.