Trump's tariffs were "stopped", global stock markets rose collectively, US dollar rose, gold plunged, US and Japanese bonds fell

Source: Wall Street News

Today, Trump's tariffs were "halted", and this sudden event instantly ignited an optimistic sentiment in global markets. Investors began to reverse their previous "sell - America" trading strategy. Besides the tariff news, the strong performance expectations of NVIDIA Corporation also boosted investor sentiment.

According to CCTV News, on the local time of May 28, the US Federal Court blocked the entry into force of the tariff policy announced by US President Trump on April 2 and ruled that Trump had overstepped his authority by imposing comprehensive tariffs on countries that export more to the US than they import.

Global markets reacted quickly. Risky assets rose, and safe - haven assets such as gold declined: US stock futures rebounded strongly, Asian stock markets rose collectively, the US dollar index climbed rapidly, and gold prices plunged. The yield on 10 - year US Treasuries rose by 2 basis points.

The "sell - America" trade reversed. Risky assets reacted positively, and safe - haven assets declined.

Specifically, US stock futures rebounded strongly. S&P 500 index futures and NASDAQ 100 futures soared by as much as 1.8% and 2.2% respectively.

Before the opening of the US stock market, star technology stocks generally rose. NVIDIA rose by more than 5%, and Apple rose by more than 3%. Most popular Chinese - concept stocks advanced. JD.com rose by more than 6%, and Alibaba rose by more than 3%.

Notably, Tesla rose by 3%, and Elon Musk officially announced his departure from the Department of Government Efficiency.

Asian stock markets generally rose, with Japanese and South Korean stocks leading the gains. The Nikkei 225 index closed up 1.9%, at 38,432.98 points. The TOPIX index closed up 1.5%. The South Korean KOSPI index closed up 1.9%.

European stock futures rose collectively. Futures of the German DAX index, the French CAC 40 index, and the Euro Stoxx 50 index all rose by more than 1%.

The US dollar index climbed to a high point in more than a week. Meanwhile, the Japanese yen depreciated by 0.8% against the US dollar.

Since its high point in February, the US dollar has fallen by more than 7%. The previous tariff policy had seriously damaged the market sentiment towards US assets and prompted investors to rethink the world's reliance on the US dollar. Mingze Wu, a currency trader at StoneX Financial Pte in Singapore, said:

The US dollar has fallen sharply due to tariffs, so it is reasonable to see the opposite situation now, as the trade outlook has become more positive on the margin.

Gold prices plunged accordingly, falling to the $3,270 level.

US Treasuries declined, and the yield on 10 - year US Treasuries rose by 2 basis points.

In addition, as Japan's ultra - long - term debt continued to fluctuate, the yield on 30 - year Japanese government bonds rose. The yield on 20 - year Japanese government bonds rose by 5 basis points to 2.445%. Previously, the auctions of 20 - year and 40 - year Japanese government bonds were weak, and a 30 - year government bond auction is scheduled for next week.

"Investors generally interpret any event that could hinder Trump's tariff agenda as good news," said Tim Waterer, chief market analyst at KCM Trade in Sydney. "Risky assets such as stocks are likely to react positively to this news."

Since Trump announced the highest - ever tariffs on April 2 to reshape the global trade order, global financial markets have experienced large - scale sell - offs. Trump's tariff plan, combined with tax cuts, has prompted investors to worry that the trade war will damage global economic growth, leading them to switch to the "sell - America" trade.

Billy Leung, a senior investment strategist at Global X ETFs in Australia, pointed out: "The tariff ruling is more regarded as a sentiment boost rather than a structural turning point. The court's decision has removed a tactical risk before the July tariff schedule - which is a key settlement event. But judging from the fund flows and sentiment indicators, investors are still trading cautiously."

NVIDIA's outstanding performance boosts technology stocks

Besides the tariff news, the strong performance expectations of NVIDIA Corporation also boosted investor sentiment.

NVIDIA's CEO, Jensen Huang, provided a solid sales forecast and said that the AI computing market is still in a stage of "exponential growth". After the news was announced, NVIDIA jumped nearly 5% in after - hours trading in New York.

However, the market is not all optimistic. HP Inc. fell about 8% after - hours, as its profit expectations missed and it lowered its full - year earnings forecast. Meanwhile, news of the Trump administration's chip restrictions caused the share prices of Cadence Design Systems and Synopsys to plummet.

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