“The decision removes one of Trump’s fastest tools for imposing broad tariffs,” said ING bank’s chief macro economist, Carsten Brzeski.
But he also warned “this ruling will not bring relief” for long, as the Trump administration has been preparing to use other legal tools.
The ruling also raises questions about whether trade deals the US has struck with partners will endure, with the European Union still not having ratified its agreement.
Bret Kenwell, US investment analyst at eToro, said the best-case outcome would be a framework that’s clearer and more consistent.
“If that’s what emerges, added certainty could be a net positive for risk assets, potentially giving investors room to lean back into a more risk-on posture,” he said.
Meanwhile, data showed the US economy grew 1.4% in the fourth quarter, well below the 2.5% analysts had forecast, while a price index for December rose to 2.9%, more than anticipated.
“While GDP growth appears to be cooling rather than rolling over, the headline figure is still a disappointment,” said Kenwell.
That data poured cold water on hopes that US growth was holding up, and inflation was contained despite Trump’s tariffs barrage, and complicated the outlook for more interest rate cuts by the Federal Reserve.
In Europe, a closely watched survey showed that business activity in the eurozone accelerated in February, indicating that the region’s economy is on a more stable footing.
British firms also boosted output in February, according to the purchasing managers’ index published by S&P Global.
London’s FTSE 100 stock index hit a fresh record high, as did the CAC 40 in Paris.
In Asia, Hong Kong fell as it reopened from a three-day break for the Lunar New Year, and Tokyo was also down.
Oil prices retreated after climbing to six-month highs this week on worries that nuclear talks between the United States and oil-rich Iran might not avert a conflict that could threaten supplies.
Trump had suggested on Thursday that “bad things” would happen if Tehran did not strike a deal within 10 days, which he subsequently extended to 15.
Asked by a reporter on Friday whether he was contemplating a limited military strike, Trump answered: “The most I can say – I am considering it.”
The US has deployed significant military forces to the Middle East region while also pursuing talks with Tehran.
“At its core, this looks like pressure and leverage rather than a prelude to invasion,” said City Index market analyst Matt Simpson.
Key figures at around 5.30am NZT
New York - Dow: UP 0.3% at 49,522.70 points
New York - S&P 500: UP 0.2% at 6,877.79
New York - Nasdaq: UP 0.5% at 22,805.71
London - FTSE 100: up 0.6 per cent at 10,686.89 (close)
Paris - CAC 40: up 1.4 per cent at 8,515.49 (close)
Frankfurt - DAX: up 0.9 per cent at 25,260.69 (close)
Tokyo - Nikkei 225: down 1.1 per cent at 56,825.70 (close)
Hong Kong - Hang Seng Index: down 1.1 per cent at 26,413.35 (close)
Shanghai - Composite: Closed for holiday
Euro/dollar: UP at $1.1781 from $1.1767 on Thursday
Pound/dollar: UP at $1.3492 from $1.3458
Euro/pound: DOWN at 87.32 pence from 87.43 pence
Dollar/yen: DOWN at 154.95 yen from 155.07 yen
Brent North Sea Crude: DOWN 0.6% at $71.23 per barrel
West Texas Intermediate: DOWN 0.6% at $66.03 per barrel
-Agence France-Presse
