Wall Street Turns Bullish as Court Blocks Trump’s Tariffs

Published: May 29, 2025 by Omor IE

Key Points

The Trump administration’s recent tariffs were blocked.
This could derail their economic plans, as tariffs would have raised enough revenue to possibly offset the tax bill.
Macroeconomic data have remained resilient so far.
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A recent ruling by the U.S. Court of International Trade has thrown a significant portion of the Trump administration’s signature tariffs into question. The court blocked the implementation of sweeping tariffs that President Donald Trump implemented two months earlier. The decision of the court targets tariffs that were enacted under the International Emergency Economic Powers Act (IEEPA) law, which grants Trump the authority to regulate international commerce during a national emergency.

However, the judges say that the Trump administration did not validly use IEEPA. The stock market has turned bullish on the news, though the tariffs on steel and aluminum are not going to be affected by the court’s blockage. The U.S. government will be appealing the court’s decision, and it could make its way to the Supreme Court, where the Trump administration could end up winning after all.

You should keep in mind that the bullishness could turn into bearishness very quickly, as this ruling could muddy the waters for the plans of the current administration. It will likely hinder trade talks. Not only that, the tax bill that just went to the Senate was likely supposed to be offset by revenue from these tariffs. Without them, things are going to get very messy for this administration’s plans.

Here’s a market update as of 10:00 AM (ET) today.

The S&P 500 is up 35.65 points, or 0.61%.
The Nasdaq Composite is up 170.4 points, or 0.89%.
The Dow Jones Industrial Average is up 88.1 points, or 0.21%.

Macros

Despite the jobless claims print coming in a bit higher, the macros are still solid. There’s plenty of uncertainty with trade, tariffs, and the constantly changing sentiment. The GDP seems to be holding stronger than expected, and inflation is also in moderate territory.

U.S. Initial Jobless Claims came in at 240,000 vs. the 230,000 forecast.
U.S. GDP quarter-over-quarter came in at -0.2% vs. the -0.3% forecast.
U.S. Continued Jobless Claims came in at 1.919 million vs. the 1.893 million forecast.
U.S. Core PCE Prices Preliminary at 3.4% vs. the 3.5% forecast.