ISTANBUL 

All eyes in the global markets have turned to a recent court ruling to block US President Donald Trump’s sweeping reciprocal tariffs ahead of US macroeconomic data to be announced, while investors focus on developments following billionaire Elon Musk’s stepping down from his role within the administration.

The US growth data to be announced on Thursday and the core personal consumption data to be revealed on Friday will give some insight into the direction of the US economy amid the global recession-inflation dilemma.

The second Trump administration’s protectionist trade policies continue to reflect in macroeconomic data, in parallel with rising economic uncertainties.

The US Court of International Trade ruled that the International Emergency Economic Powers Act that Trump leveraged to impose tariffs did not enable him to do so, invalidating the so-called Liberation Day tariffs, as the court argued that Trump exceeded his legal power.

The ruling said that it is the Congress and not the president who can regulate trade and impose duties.

Analysts say that the ruling will not affect steel, aluminum, and auto tariffs but further changes to US trade policy may be on the horizon.

Meanwhile, minutes from the Fed’s latest meeting showed that Fed officials adopted a cautious approach until the impact of the changes in government policies became clearer. Officials agreed that the downside risks to employment and economic activity increased, while the upside risks to inflation rose, both due to tariffs.

At the same time, billionaire Elon Musk announced in a statement that he resigned from his advisory role in the second Trump administration on Wednesday.

American index futures rallied after chipmaker Nvidia announced its revenue reached $44.1 billion in the three-month period with an increase of 69% on an annual basis, above market estimates. The company’s revenue climbed 12% quarter-on-quarter, earning $26 billion.

Nvidia CEO Jensen Huang said the Blackwell NVL72 artificial intelligence (AI) supercomputer is in full-scale production.

Nvidia shares climbed 5% in after-hours with strong buying activity in its shares.

The S&P 500 completed Wednesday down 0.56%, the Nasdaq 0.51%, and the Dow Jones 0.58% but the recent developments have made the US market start on a positive note.

The bond markets were dominated by sell-offs on Wednesday, as the US 10-year bond yield closed the day at 4.48%, currently hovering at 4.53% on Thursday.

The ounce price of gold fell 0.6%, trading at $3,270, while the US Dollar Index started Thursday flat at 100.3 and the barrel price of Brent crude oil climbed 1.3% to $63.1.

In Europe, Bank of England Governor Andrew Bailey’s statements to be delivered are under the focus of investors.

Germany’s DAX 40 fell 0.78%, the UK’s FTSE 100 0.59%, and France’s CAC 40 0.49%, while Italy’s FTSE MIB 30 followed a horizontal course on Wednesday. European indexes started Thursday positively.

As for Asia, the US court’s overturn of Trump’s sweeping reciprocal tariffs and Nvidia’s financial results encouraged buyers.

South Korean and Japanese tech stocks rose on Nvidia’s better-than-expected results, while the tariff decision increased risk appetite.

Bank of Korea in South Korea cut its policy rate by 25 basis points to 2.5%, within estimates. The bank’s decision came in due to the expectations of slowing economic growth and relatively stable inflation.

Japan’s Nikkei 225 climbed 1.8%, South Korea’s Kospi Index 1.8%, China’s Shanghai Composite Index 0.8%, and the Hong Kong Special Administrative Region’s Hang Seng Index 1.2% near the close.