Stock Market Responds After Trump's Tariffs Blocked

Stock futures spiked Thursday (May 29) morning after the majority of President Donald Trump's tariffs were blocked by a federal three-judge panel on Wednesday (May 28), CBS News reports.

S&P 500 futures were up 67 points (1.1%) to 5,969 at 7:27 a.m. ET, while the Dow Jones Industrial Average increased by 0.5% and the Nasdaq Composite was up 1.6%.

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

The U.S. Court of International Trade panel ruled that Trump had exceeded his authority as the tariffs lacked "any identifiable limits" and that the Emergency Economic Powers Act, the federal law the president has cited in many of his executive orders, doesn't “delegate an unbounded tariff authority to the President.”

“We instead read IEEPA’s provisions to impose meaningful limits on any such authority it confers," the panel wrote via NBC News.

The tariffs blocked include the 10% rate applied to most U.S. trading partners and those on China, as well as ones levied on Canada and Mexico that Trump has claimed to be fentanyl-related. The judgment pertained to two lawsuits over the president's tariffs, which includes one by a group of states led by Arizona and Oregon and another led by several small business, both of which sued the administration and claimed Trump exceeded his authority.

"I will continue to fight for affordability for Arizonans and against President Trump’s illegal abuses of power,” said Democrat Arizona Attorney General Kris Mayes via NBC News.

The Trump administration had already moved to appeal the panel's decision in the U.S. Court of Appeals for the Federal Circuit shortly after it was reported on Wednesday.