Daily Fundamental Analysis: Global Markets Decline After Trump’s Tariffs are Reinstated

Stock futures edged lower Thursday night amid volatile global trade developments. The Dow futures fell 0.1%, S&P 500 futures dropped 0.2%, and Nasdaq-100 futures slipped 0.3%.

Markets were choppy Thursday after the Court of International Trade temporarily halted Trump’s tariffs before allowing them to continue until next week. This adds to existing market uncertainty around trade policy and recession fears.

Despite this, May has been strong for US markets – the S&P 500 is up 6%, Nasdaq is up 10%, and Dow gained 4% this month.

U.S.-China trade talks are stalled and need direct leadership involvement, Treasury Secretary Scott Bessent said on Thursday, anticipating more talks in coming weeks.

Asia-Pacific markets fell Friday due to U.S. economic concerns and uncertainty over Trump’s tariff judicial developments. The U.S. Court of International Trade initially blocked Trump’s “reciprocal” tariffs, but an appeals court reinstated them. The administration may seek Supreme Court intervention.

Major indices declined across the region: Japan’s Nikkei 225 fell 1.37%, South Korea’s Kospi dropped 0.72%, and Hong Kong’s Hang Seng Index lost 1.48%. China’s CSI 300 declined 0.33%, while India’s indices and Australia’s S&P/ASX 200 remained relatively flat.

Tokyo’s core inflation reached 3.6% in April, its highest since January 2023. Traders and investors are waiting the Fed’s PCE inflation data today.

In the Forex market, the US dollar reversed course yesterday and declined against major currencies. The dollar index fell to $98.74 yesterday. EURUSD was up 76 points yesterday to 1.1367. GBPUSD gained 22 points and closed at 1.3492