Markets Rally on May 29 as US Court Blocks Trump Tariffs

Markets Rise as U.S. Court Invalidates Trump’s Broad Tariff Measures

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: May 29, 2025

Summary: Global markets surged after a US court halted Trump's tariff powers, boosting investor sentiment and lifting Asian indices.

On May 29, 2025, worldwide financial markets surged following a US federal court decision to overturn former President Donald Trump's right to impose sweeping tariffs using emergency powers. This decision calmed investor concerns about rising trade tensions and potential inflationary pressures.

Asian Markets:

Asian stock indices have reacted positively to the news:

Japan's Nikkei 225: Increased by 1.63%
South Korea's KOSPI: Rose by 1.72%
China's Shanghai Composite: Advanced by 0.57%
Hong Kong's Hang Seng: Gained 0.52%

US Futures:

US stock futures also reflected the optimistic sentiment:

S&P 500 Futures: Up by 1.5%
Nasdaq 100 Futures: Surged by 1.7%
Dow Jones Futures: Increased by 1.1%

US Markets:

Despite the positive outlook, US markets closed on May 28 as investors took in the Federal Reserve's meeting minutes, and chip designer stocks fell. Nvidia's shares surged 5% after the company reported quarterly sales that beat expectations; however, its forecast for the coming quarter fell short.

Indian Markets:

In India, the NIFTY Futures traded at Gift City climbed 0.43% (107 points) to 24,844, indicating a positive start for the home markets, aided by the global surge.

Stocks in Focus:

Schaeffler India: The company plans a ₹1,700 crore investment over three years to enhance its capabilities. This involves the opening of a new production facility in Tamil Nadu dedicated to engine and chassis components.

ITC: British American Tobacco (BAT) cut its interest in ITC by 2.5%, resulting in a ₹12,941 crore disposal.

The court's decision to limit presidential tariff powers has boosted global markets, giving investors hope for more stable international trade relations in the future.