Markets ride tariff rollercoaster overnight
The news that a federal court had blocked President Trump’s use of tariffs under emergency powers laws whipsawed stocks overnight, generating a knee-jerk pop in equities that gradually faded as Wall Street came to the consensus that the ruling won’t be the end of the White House fixation on manipulating trade barriers.
While some key tech stocks like Nvidia, which was already up after its earnings report yesterday, seemed to get a bit more of a lift from the news, it was the domestically focused iShares Russell 2000 ETF futures, rather than futures on the Nasdaq 100 (Invesco QQQ Trust) and the S&P 500 (SPDR S&P 500 ETF), that had the most substantial reaction. They rose nearly 3% at points in the overnight session, suggesting that traders see a potential curtailment of tariffs as a good sign for American consumption.
But that optimism faltered with fresh economic reports showing higher-than-expected jobless claims and confirming Q1 economic weakness.
While some key tech stocks like Nvidia, which was already up after its earnings report yesterday, seemed to get a bit more of a lift from the news, it was the domestically focused iShares Russell 2000 ETF futures, rather than futures on the Nasdaq 100 (Invesco QQQ Trust) and the S&P 500 (SPDR S&P 500 ETF), that had the most substantial reaction. They rose nearly 3% at points in the overnight session, suggesting that traders see a potential curtailment of tariffs as a good sign for American consumption.
But that optimism faltered with fresh economic reports showing higher-than-expected jobless claims and confirming Q1 economic weakness.
