From Yahoo Finance: 2025-05-29 17:09:00

Tariff confusion struck markets as a U.S. trade court ruled against most of Trump’s tariffs, only to have an appeals court reinstate them later. Wall Street rallied briefly, with benchmark indices up to 0.4%. Nvidia shares surged, and Asian markets saw gains. U.S. Treasury yields fell, and gold rose.

Investors face more uncertainty as a U.S. court ruling on Trump’s tariffs creates confusion. The administration may find other legal avenues to implement tariffs, affecting negotiations with trade partners. Tariff revenues were expected to increase, but the court ruling could cut them below $200 billion, impacting growth and trade retaliation.

Trump’s meeting with Fed Chair Powell highlighted disagreements on interest rates. The Fed remains cautious due to unprecedented uncertainty, while Trump believes rate cuts are necessary. Investors were also digesting Nvidia’s earnings and revised U.S. GDP data. More data releases are expected on Friday, including inflation snapshots and GDP readings.

High U.S. borrowing costs could bring the fiscal ‘precipice’ closer, with debt projected to rise to 117% of GDP. While a debt crisis may seem unlikely, increased fiscal gloom impacts markets. Economic assumptions and yield curve projections play a crucial role in debt sustainability, affecting interest payments and GDP growth dynamics.

Market-moving events on the horizon include economic data releases from Japan, India, Brazil, and Germany, as well as U.S. consumer sentiment and inflation expectations. Federal Reserve officials are scheduled to speak, adding to market volatility. Opinions expressed are the author’s own and do not reflect Reuters News views.

Read more: Trading Day: Courting confusion