Financial markets welcomed a U.S. court ruling that blocks President Donald Trump from imposing sweeping tariffs on imports under an emergency-powers law.

U.S. futures jumped early Thursday and oil prices rose more than $1. The U.S. dollar rose against the yen and euro.

The court found the 1977 International Emergency Economic Powers Act, which Trump has cited as his basis for ordering massive increases in import duties, does not authorize the use of tariffs.

The White House immediately appealed and it was unclear if Trump would abide by the ruling in the interim. The long term outcome of legal disputes over tariffs remains uncertain. But investors appeared to take heart after the months of turmoil brought on by Trump's trade war.

The future for the S&P 500 was up 1.5% while that for the Dow Jones Industrial Average gained 1.2%.

In early European trading, Germany's DAX gained 0.5% to 24,160.75. The CAC 40 in Paris jumped 0.9% to 7,860.67. Britain's FTSE was nearly unchanged at 8,722.63.

Japan's Nikkei 225 index jumped 1.9% to 38,432.98. American's largest ally in Asia has been appealing to Trump to cancel the tariffs he has ordered on imports from Japan and to also stop 25% tariffs on steel, aluminum and autos.
A U.S. Customs and Border Protection technician examines overseas parcels after they were scanned at the agency's overseas mail inspection facility at Chicago's O'Hare International Airport on Feb. 23, 2024.

The ruling also pushed the dollar sharply higher against the Japanese yen. It was trading at 145.40 yen early Thursday, up from 144.87 yen late Wednesday.

A three-judge panel ruled on several lawsuits arguing Trump exceeded his authority, casting doubt on trade policies that have jolted global financial markets, frustrated trade partners and raised uncertainty over the outlook for inflation and the global economy.

Many of Trump's double-digit tariff hikes are paused for up to 90 days to allow time for trade negotiations, but the uncertainty they cast over global commerce has stymied businesses and left consumers wary about what lies ahead.

"Just when traders thought they'd seen every twist in the tariff saga, the gavel dropped like a lightning bolt over the Pacific," Stephen Innes of SPI Asset Management said in a commentary.

The ruling was, at the least, "a brief respite before the next thunderclap," he said.

Elsewhere in Asia, Hong Kong's Hang Seng added 1.3% to 23,561.86, while the Shanghai Composite index gained 0.7% to 3,363.45.

Australia's S&P/ASX 200 gained 0.2% to 8,409.80.

In South Korea, which like Japan relies heavily on exports to the U.S., the Kospi surged 1.9% to 2,720.64. Shares also were helped by the Bank of Korea's decision to cut its key interest rate to 2.5% from 2.75%, to ease pressure on the economy.
Taiwan's Taiex edged 0.1% lower, and India's Sensex lost 0.2%.

On Wednesday, U.S. stocks cooled, with the S&P 500 down 0.6% but still within 4.2% of its record after charging higher amid hopes that the worst of the turmoil caused by Trump's trade war may have passed. It had been roughly 20% below the mark last month.

The Dow industrials lost 0.6% and the Nasdaq composite fell 0.5%.

Trading was relatively quiet ahead of a quarterly earnings release for Nvidia, which came after markets closed.

The bellwether for artificial intelligence overcame a wave of tariff-driven turbulence to deliver another quarter of robust growth thanks to feverish demand for its high-powered chips that are making computers seem more human. Nvidia's shares jumped 6.6% in afterhours trading.

Like Nvidia, Macy's stock also swung up and down through much of the day, even though it reported milder drops in revenue and profit for the latest quarter than analysts expected. Its stock ended the day down 0.3%.

The bond market showed relatively little reaction after the Federal Reserve released the minutes from its latest meeting earlier this month, when it left its benchmark lending rate alone for the third straight time. The central bank has been holding off on cuts to interest rates, which would give the economy a boost, amid worries about inflation staying higher than hoped because of Trump's sweeping tariffs.

Jurors began deliberating Thursday in the case of two men charged with cutting down the Sycamore Gap tree that once stood along the ancient Hadrian’s Wall in northern England.

Daniel Graham, 39, and Adam Carruthers, 32, have pleaded not guilty to two counts each of criminal damage. The former friends each testified that they were at their separate homes that night and not involved.

Justice Christina Lambert told jurors in Newcastle Crown Court to take as long as they need to reach unanimous verdicts in the trial that began April 28.

The tree was not Britain’s biggest or oldest, but it was prized for its picturesque setting along the ancient wall built by Emperor Hadrian in A.D. 122 to protect the northwest frontier of the Roman Empire.

The tree was long known to locals but achieved international fame in Kevin Costner’s 1991 film “Robin Hood: Prince Of Thieves.” It sat symmetrically between two hills along the historic wall and was a draw for tourists, landscape photographers and those taking selfies for social media.

Prosecutors said the tree’s value exceeded 620,000 pounds ($830,000) and damage to the wall, which is a UNESCO World Heritage Site, was assessed at 1,100 pounds. Andrew Gurney, a lawyer for Carruthers, said Graham’s story didn’t add up and he was projecting his guilt on his former friend.

“Is that a plausible chain of events or is that the desperate story of a man caught out?” Gurney said.

Wright mocked the duo’s defense, saying common sense and a trail of evidence should lead jurors to convict them for their “moronic mission.”

Prosecutors showed grainy video from Graham’s phone of the tree being cut down — a video sent shortly afterward to Carruthers’ phone. Metadata showed it was taken at the tree’s location in Northumberland National Park. Data showed Graham’s Range Rover had traveled there.

Wright said he couldn’t say who cut the tree and who held the phone, but the two were the only people in the world who had the video on their devices.

Text and voice messages exchanged the following day between Carruthers and Graham captured their excitement as the story went viral.

The federal government says it’s freezing more than $2.2 billion in grants and $60 million in contracts to Harvard University, after the institution said it would defy the Trump administration’s demands to limit activism on campus.

The hold on Harvard’s funding marks the seventh time President Donald Trump’s administration has taken the step at one of the nation’s most elite colleges, in an attempt to force compliance with Trump’s political agenda. Six of the seven schools are in the Ivy League.

It sets the stage for a showdown between the federal government and America’s oldest and wealthiest university. With an endowment of more than $50 billion, Harvard is perhaps the best positioned university to push back on the administration’s pressure campaign.

In a letter to Harvard Friday, Trump’s administration had called for broad government and leadership reforms at the university, as well as changes to its admissions policies. It also demanded the university audit views of diversity on campus, and stop recognizing some student clubs.

The federal government said almost $9 billion in grants and contracts in total were at risk if Harvard did not comply.

On Monday, Harvard President Alan Garber said the university would not bend to the government’s demands.

“The University will not surrender its independence or relinquish its constitutional rights,” Garber said in a letter to the Harvard community. “No government — regardless of which party is in power — should dictate what private universities can teach, whom they can admit and hire, and which areas of study and inquiry they can pursue.”

Hours later, the government froze billions in Harvard’s federal funding.

The first university targeted by the Trump administration was Columbia, which acquiesced to the government’s demands under the threat of billions of dollars in cuts. The administration also has paused federal funding for the University of Pennsylvania, Brown, Princeton, Cornell and Northwestern.

Trump’s administration has normalized the extraordinary step of withholding federal money to pressure major academic institutions to comply with the president’s political agenda and to influence campus policy. The administration has argued universities allowed antisemitism to go unchecked at campus protests last year against Israel’s war in Gaza.

Harvard, Garber said, already has made extensive reforms to address antisemitism. He said many of the government’s demands don’t relate to antisemitism, but instead are an attempt to regulate the “intellectual conditions” at Harvard.

Withholding federal funding from Harvard, one of the nation’s top research universities in science and medicine, “risks not only the health and well-being of millions of individuals but also the economic security and vitality of our nation.” It also violates the university’s First Amendment rights and exceeds the government’s authority under Title VI, which prohibits discrimination against students based on their race, color or national origin, Garber said.

The government’s demands included that Harvard institute what it called “merit-based” admissions and hiring policies and conduct an audit of the study body, faculty and leadership on their views about diversity. The administration also called for a ban on face masks at Harvard — an apparent target of pro-Palestinian campus protesters — and pressured the university to stop recognizing or funding “any student group or club that endorses or promotes criminal activity, illegal violence, or illegal harassment.”

Harvard’s defiance, the federal antisemitism task force said Monday, “reinforces the troubling entitlement mindset that is endemic in our nation’s most prestigious universities and colleges — that federal investment does not come with the responsibility to uphold civil rights laws.

John Gutierrez had been thinking about buying a new laptop for the past year. The Austin, Texas, resident needed a computer with faster processing and increased storage for his photography work and had his sights set on a product from a Taiwanese brand.

Then President Donald Trump announced expansive new import tariffs Wednesday, including a 32% tax on imports from Taiwan. That same day, Gutierrez ordered the laptop, with a base price of $2,400, from a retailer in New York specializing in photo and video gear.

“I thought I’d bite the bullet, buy it now, and then that way I’ll have the latest technology on my laptop and don’t have to worry about the tariffs,” he said.

Gutierrez was among the U.S. consumers rushing to buy big-ticket items before the tariffs take effect. Economists say the tariffs are expected to increase prices for everyday items, warning of potentially weakened U.S. economic growth.

The White House hopes the tariffs prod countries to open their economies to more American exports, leading to negotiations that could reduce tariffs, or that companies increase their production in the U.S. to avoid higher import taxes.

Rob Blackwell and his wife needed a new car that could handle long drives from Arlington, Virginia, to their son’s college. Their current electric vehicle is older with a limited range, and it will soon be used by his daughter, who is on the verge of getting her driver’s license.

“I have been telling my wife that for some time we were going to need to do it,” he said, “and I was watching to see what the president did with tariffs.”

Blackwell wanted another EV, but said leasing made more economic sense because the technology is ever-changing. He had his eye on the new General Motors Optiq; it’s an American car but made in Mexico, which could be subject to tariffs on supply chains that might increase the cost.

After hearing that tariffs would be announced, they made plans the weekend before to lease the car. He said the dealership honored the agreement they worked out before the tariffs were finalized. And although he said the salespeople were a pleasure to deal with, Blackwell sensed a shift in their stance.

A court formally arrested the mayor of Istanbul, a key rival to President Recep Tayyip Erdogan, on Sunday and ordered him jailed pending the outcome of a trial on corruption charges.

Mayor Ekrem Imamoglu was detained following a raid on his residence earlier this week, sparking the largest wave of street demonstrations in Turkey in more than a decade. It also deepened concerns over democracy and rule of law in Turkey.

His imprisonment is widely regarded as a political move to remove a major contender from the next presidential race, currently scheduled for 2028. Government officials reject the accusations and insist that Turkey’s courts operate independently.

The prosecutor’s office said the court decided to jail Imamoglu on suspicion of running a criminal organization, accepting bribes, extortion, illegally recording personal data and bid-rigging. A request for him to be imprisoned on terror-related charges was rejected although he still faces prosecution. Following the court’s ruling, Imamoglu was transferred to Silivri prison, west of Istanbul.

The Interior Ministry later announced that Imamoglu had been suspended from duty as a “temporary measure.” The municipality had previously appointed an acting mayor from its governing council.

Alongside Imamoglu, 47 other people were also jailed pending trial, including a key aide and two district mayors from Istanbul, one of whom was replaced with a government appointee. A further 44 suspects were released under judicial control.

Interior Minister Ali Yerlikaya said Sunday that 323 people were detained the previous evening over disturbances at protests.

Largely peaceful protests across Turkey have seen hundreds of thousands come out in support of Imamoglu. However, there has been some violence, with police deploying water cannons, tear gas, pepper spray and firing plastic pellets at protesters in Istanbul, Ankara and Izmir, some of whom hurled stones, fireworks and other missiles at riot police.

The formal arrest came as more than 1.5 million members of the opposition Republican People’s Party, or CHP, began holding a primary presidential election to endorse Imamoglu, the sole candidate.

The party has also set up symbolic ballot boxes nationwide to allow people who are not party members to express their support for the mayor. Large crowds gathered early Sunday to cast a “solidarity ballot.”

“This is no longer just a problem of the Republican People’s Party, but a problem of Turkish democracy,” Fusun Erben, 69, said at a polling station in Istanbul’s Kadikoy district. “We do not accept our rights being so easily usurped. We will fight until the end.”

Speaking at a polling station in Bodrum, western Turkey, engineer Mehmet Dayanc, 38, said he feared that “in the end we’ll be like Russia, a country without an opposition, where only a single man participates in elections.”

In a message posted on social media, Imamoglu called on people to show “their struggle for democracy and justice to the entire world” at the ballot box. He warned Erdogan that he would be defeated by “our righteousness, our courage, our humility, our smiling face.”

“Honestly, we are embarrassed in the name of our legal system,” Ankara Mayor Mansur Yavas, a fellow member of Imamoglu’s CHP, told reporters after casting his vote, criticizing the lack of confidentiality in the proceedings.

CHP leader Ozgur Ozel said Imamoglu’s imprisonment was reminiscent of “Italian mafia methods.” Speaking at Istanbul City Hall, he added: “Imamoglu is on the one hand in prison and on the other hand on the way to the presidency.”

The Council of Europe, which focuses on promoting human rights and democracy, slammed the decision and demanded Imamoglu’s immediate release.