Stocks Waver as Wall Street Digests Trump Tariff Uncertainty

New York (CNN) – U.S. stocks wavered on Thursday as Wall Street navigated the latest developments in President Donald Trump’s contentious tariff agenda, which was thrown into question following a federal court ruling that blocked the bulk of the administration’s sweeping trade measures.

The Dow Jones Industrial Average ended the day with a 117-point gain, or 0.28%, while the S&P 500 rose 0.4% and the tech-focused Nasdaq Composite added 0.39%. Stocks had rallied in early trading but lost momentum as uncertainty over the fate of Trump’s tariffs lingered.

A federal court decision late Wednesday declared that Trump overstepped his authority in imposing sweeping tariffs, sparking initial optimism among investors. However, the White House swiftly appealed the decision, and a federal appeals court temporarily paused the ruling. Analysts suggested that the administration might pivot to reclassifying some tariffs under alternative statutes, such as Section 232, which were not addressed in the court ruling.

“The Trump administration has other authorities it can use to impose tariffs similar to those the court struck down,” explained Alec Phillips, managing director at Goldman Sachs.

Wall Street’s cautious response came despite Wednesday’s strong earnings report from Nvidia and a rebound in stocks heavily affected by trade tensions, including Apple, Target, Nike, and Crocs. However, these gains were tempered by broader market concerns.

“There is still plenty of uncertainty about future tariffs,” observed John Higgins, chief markets economist at Capital Economics.

Traditional safe-haven assets such as U.S. Treasury bonds and gold attracted investors on Thursday, reflecting a risk-off sentiment amid the murky outlook. Meanwhile, the dollar and U.S. crude oil prices fell.

Kurt Reiman, head of fixed income for the Americas at UBS Global Wealth Management, warned of potential further disruptions: “While Wednesday’s ruling may lift markets and the spirits of businesses and consumers concerned about the negative effects of tariffs, the uncertainty that’s starting to weigh on the economy isn’t going away.”

Analysts caution that near-term market gains could be limited, and volatility is likely to persist as the White House pursues an appeal and potentially new tariff measures targeting industries like pharmaceuticals, critical minerals, and semiconductors.

Explore: NBCPalmSprings.com, where we are connecting the Valley.