NEW YORK (AP) — The big rally started in Asia, the stock lost momentum after the U.S. and the U.S. swept Europe on Thursday, because uncertainty will happen after U.S. courts blocked a large number of tariffs from many President Donald Trump.
The S&P 500 rose 0.4%, which abandoned more than half of its early earnings. The Dow Jones industrial average rose 117 points, or 0.3%, while Nasdaq Comprehensive rose 0.4%.
It was a downshift after the stock initially jumped nearly 2% in Tokyo and Seoul, and the U.S. Court of International Trade had a chance to react to the ruling later Wednesday. The court said Trump pointed out that the 1977 International Emergency Economic Powers Act ordered a massive increase in taxes imported from around the world and did not authorize the use of tariffs.
The ruling first proposed in financial markets hopes that a troubled Trump will not be able to fall into a recession with his tariffs, which could cut global trade and raise prices for consumers who are already tired of high inflation. Trump said he wanted to bring manufacturing jobs back to the United States, warning that the process could cause some pain to American families.
But when the White House appealed the ruling, the tariffs remained, and the final result remained uncertain. The court's ruling also affects only some of Trump's tariffs, not foreign steel, aluminum and automobile tariffs, which are cited under different laws.
According to Ulrike Hoffmann-Burchardi, chief investment officer of Global Equity in UBS Global Wealth Management, Trump “still be able to impose significant and extensive tariffs in other ways for a long time.”
This uncertainty helps weaken the excitement of financial markets, as transactions enter the United States through Europe, where the move is much more modest than Asia. Nevertheless, the U.S. court action is seen as a positive for the financial market.
"The tariffs raised by President Trump," said Brian Jacobsen, chief economist at the Attachment Wealth Management.
“The market pricing is that it is a better uncertainty than we have since Liberation Day.”
After a slight decline of about 20% last month, the S&P 500 has an all-time high of about 3.8% of its all-time high.
On Wall Street, tech stocks came after NVIDIA once again surpassed analysts' expectations for profit and revenue in the latest quarter.
Thanks to the madness surrounding artificial intelligence technology, CHIP has grown into one of the largest and most influential stocks in the U.S. market, with a 3.2% rise being the strongest force, upping the S&P 500 so far.
AI application software company C3.AI reported profits higher than analysts' latest quarter, which rose 20.8%. It also said the Air Force increased the maximum value of its contract by $350 million to $450 million. The company's revenue last quarter totaled $108.7 million.
Elf Beauty is another big winner, up 23.6% after cosmetics companies made higher profits this quarter than analysts expected. It also said it agreed to buy Hailey Bieber’s Rhode Skincare brand in a $1 billion deal. Rhode had $212 million in net sales in 12 months in March.
Model, Bieber, wife of singer Justin Bieber, will serve as Chief Creative Officer, Head of Innovation for Rhode and strategic consultant for the merged company.
They helped offset Best Buy’s decline, even though it reported profits 7.3% higher than expected. Its revenue is insufficient for analysts' forecasts.
E-retailers also assume that “the tariffs remain at current levels for the rest of the year, and consumer behavior has not changed substantially from recent trends,” said Chief Financial Officer Matt Bilunas, who said Chief Financial Officer Matt Bilunas.
Many companies recently said the uncertainty arising from tariffs makes it too difficult to provide any financial forecasts in the coming year.
All in all, the S&P 500 rose 23.62 points to 5,912.17. The Dow Jones industrial average increased by 117.03 to 42,215.73, while Nasdaq Comprehensive gained 74.93 to 19,175.87.
In the bond market, treasury output has decreased after some mixed reports of the economy. Some say that in the first three months of the year, the U.S. economy may shrink less than previously estimated. Another said that American workers filed for unemployment benefits last week, far exceeding economists’ expectations.
The 10-year Treasury yield fell to 4.43% from 4.47% late Wednesday.
In foreign stock markets, Japan's Nikkei 225 jumped 1.9% to help lead the Asian market, while Hong Kong stocks rose 1.4% and Shanghai rose 0.7%. South Korea's Kospi rose 1.9% after South Korea's banks lowered their key interest rates to relieve pressure on the economy.
European stocks have been more gentle. Both the CAC 40 in France and the DAX in Germany have shifted from early gains to moderate losses.
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Associated Press business writers Matt Ott and Elaine Kurtenbach contributed.