Stocks Open Higher After Court Ruling Halts Trump-Era Tariffs; Nasdaq Leads Early Gains

U.S. stocks opened higher Thursday, with major indexes extending early gains as investors reacted to a favorable court ruling on import tariffs and economic data offering mixed signals on growth and inflation.

At the opening bell, the Nasdaq Composite surged 268.40 points, or 1.41%, to 19,369.3, leading the broader market higher. The S&P 500 gained 46.50 points, or 0.79%, to 5,935.05, while the Dow Jones Industrial Average added 54.86 points, or 0.13%, to 42,153.6.

Markets opened firmly in the green after the U.S. Court of International Trade late Wednesday ruled that President Donald Trump exceeded his legal authority when imposing sweeping tariffs under the International Emergency Economic Powers Act. The decision invalidates a wide swath of import duties, including the baseline 10% tariff and reciprocal levies targeting major trading partners such as China, Mexico, and Canada.

The ruling spurred premarket optimism, particularly among technology and multinational firms expected to benefit from reduced input costs. Equities had rallied in overnight futures trading, with chipmakers and exporters in focus. However, gains moderated slightly as investors digested the White House's immediate appeal, which could delay any tariff relief and prolong uncertainty.

The macroeconomic backdrop added further complexity. Initial jobless claims rose to 240,000, exceeding the 230,000 estimate, suggesting some softening in the labor market. Continued claims also came in higher than forecast at 1.919 million, raising concerns about labor market momentum. Meanwhile, the second estimate for first-quarter GDP showed a 0.2% contraction—better than the expected -0.3%—but still marking the second straight quarterly decline. Core PCE prices, the Fed’s preferred inflation gauge, cooled slightly to 3.4%, offering modest reassurance on inflation trends.

Shares of Best Buy were under pressure at the open, sliding roughly 6% after the company lowered its full-year guidance despite posting a modest earnings beat. The electronics retailer cited persistent tariff-related cost pressures and soft demand in big-ticket categories like appliances and home theaters. CEO Corie Barry said that while the company had reduced its dependence on Chinese imports, about 30–35% of its COGS still originate there, many of which remain subject to tariffs. “Raising prices remains a last resort,” she emphasized, noting mitigation efforts through sourcing shifts and cost negotiations.

Best Buy’s revised guidance now sees FY26 revenue between $41.1 billion and $41.9 billion, below prior forecasts, and EPS of $6.15 to $6.30. The guidance cut underscores the continued impact of trade policy volatility, even amid legal shifts that may eventually reduce cost burdens.

As trading resumes, investors are watching for signs of how quickly the administration will pursue alternative legal avenues to reimpose tariffs and whether upcoming court decisions—including a possible Supreme Court review—might change the outlook for U.S. trade policy.

For now, the morning rally reflects a tentative sigh of relief. But with appeals underway and macro data flashing caution, markets remain on alert.