German Stock Market buoyed by Nvidia's Strong Results and US Tariff Court Ruling
Potential rise anticipated for Dax following American judgment
Robust business figures from artificial intelligence titan Nvidia and a legal setback for the Trump administration's harsh trade policies have buoyed sentiment on the German stock market today. The Dax rose by 0.8% in the opening minutes to 24,224 points, although it fell short of setting a new record, which remains at the near 24,326 points reached yesterday. In 2025, the German benchmark index is still up around 22%. The MDax rose by 0.7% on the holiday of Ascension Day to 30,847 points. The Euro Stoxx 50 saw a 1% increase.
According to portfolio manager Thomas Altmann of wealth manager QC Partners, markets are celebrating Donald Trump's defeat at the US trade court. Despite an immediate appeal by the White House, the ruling raises doubts about the validity of the tariffs imposed. If upheld, these tariffs may be withdrawn, potentially reshaping global financial markets.
A US federal court in New York has ruled that President Trump does not have the authority to impose sweeping tariffs under an emergency law. The court ruling vacates and permanently prohibits the application of the tariffs. This marks a temporary halt to the Trump administration's controversial trade policy that has previously rattled global markets and caused turmoil.
Investors were initially apprehensive about Nvidia's financial results, given the tech giant's sizable impact on market sentiment beyond its sector. However, the company's impressive revenue growth eased investor concerns. Experts view Nvidia as resilient, agile, and the undisputed cornerstone of the AI megatrend, with Infineon's shares also seeing a 3.4% increase as a result.
Sportswear manufacturers Adidas and Puma particularly profited from the court's decision on tariffs. Adidas shares, the largest Dax gainer, rose by 3.8%, while Puma shares increased by 2.3%. The stocks had previously suffered significantly due to US announcements, with drastic tariffs set to take effect in Vietnam, a key production hub for the footwear and apparel industry, as early as July.
[Enrichment Data: The tariffs imposed under President Trump's administration, as of May 2025, have been partially suspended or delayed. Reduced rates (from 34% down to 10%) have been temporarily implemented to maintain a trade baseline. Some pre-existing and emergency-related tariffs remain active. This strategic move aims to balance trade negotiations and protect American industry amid ongoing trade tensions.]
- The ruling at the US trade court, which vacates and permanently prohibits the application of tariffs, could positively impact various sectors, including sports, as seen by the rise in Adidas and Puma shares.
- Moreover, the strong financial performance of tech giant Nvidia, seen as resilient and the undisputed cornerstone of the AI megatrend, has also boosted sentiments in the finance and technology sectors, as well as other businesses.
