Court Declares Tariffs Unconstitutional, Market Surges After Hours


Late on Wednesday, a U.S. federal trade court ruled that President Trump's tariffs on multiple countries were unconstitutional, stating that he overstepped his authority by imposing them without congressional approval. The decision blocks several of Trump's "Liberation Day" tariffs, which included 10% duties on nearly all imports from nations with trade deficits with the U.S..The White House has already appealed, and the case may ultimately go to the Supreme Court. 

The Market reaction to this news was swift and positive.  As of 1:00 AM Eastern time, S&P 500 futures were up about 73 points (+1.3%) while Bitcoin was mostly unchanged at around $ 107,660 K.  

After-Hours Earnings Help Lift Stocks

Earnings reported after hours have also been positive.  

  • Abercrombie & Fitch (ANF) reported Q1 earnings of $1.59 per share, beating expectations by $0.20. The stock surged 28% pre-market.  
  • Macy’s (M) posted Q1 earnings of $0.16 per share, slightly above the expected $0.15, leading to a 2% stock increase.  
  • Nvidia (NVDA) reported Q1 2025 earnings per share (EPS) of $0.76, beating analyst expectations of $0.73. Despite the earnings beat, the stock's after-hours movement was mixed—initially jumping 3% to $138, but later pulling back slightly to $134.81. 
  • Dick’s Sporting Goods (DKS) exceeded estimates, causing its stock to jump 5%.
If we look at our indicators, we see that most indicators are positive, but the 1-hr slow stochastic indicators have both reset to negative.  

However, the Mean Reversion indicators are mostly positive, which suggests further upside.  

In addition, the 4-hr Engulfing Candle chart is showing a buy signal.

Hourly support for the S&P 500 is around 5,970, with resistance at around 6,000.  

CONCLUSION:  The Market should continue up through the end of the week.  







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