The ruling added to uncertainty facing companies and consumers, but investors were encouraged that it could slow momentum for a trade war that threatened economic and corporate growth.
Stocks were unsteady on Thursday, beginning the day with a gain before sliding into the afternoon, after Wall Street’s initially upbeat reaction to a ruling against President Trump’s trade policy quickly gave way to doubts about the long-term impact of the decision.
On Wednesday, a panel of U.S. judges had blocked Mr. Trump from imposing some of his steepest tariffs, which have threatened to squeeze consumers, snarl supply chains and dent corporate earnings.
The ruling is a setback to Mr. Trump’s plans to use tariffs as a cudgel, as his administration negotiates new trade deals with dozens of countries, but the White House rushed to ask the court to stay the decision, leaving investors, as well as businesses leaders and consumers, in limbo. Trump administration officials also said that the ruling would not dissuade the administration and that they had other avenues for pursuing tariffs. “Nothing’s really changed,” Peter Navarro, trade adviser to the president, told Bloomberg.
The S&P 500 index had risen as much as 2 percent in overnight trading before the gains faded. By midday, the index was slightly lower.
“While the decision offers potential short-term tariff relief, it introduces greater ambiguity around the future direction of US trade policy, particularly as the ruling faces appeal,” said Gregory Daco, chief economist at EY.
Stocks in Hong Kong, Japan and South Korea all rose more than 1 percent. But in Europe, the response was more muted, with benchmarks across the region mixed between small gains and losses.
