Judges Check Trump’s Trade Authority
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Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning. Today is Thursday, May 29th. I'm Julie Morgan. Trump's tariffs fall flat, Elon Musk bows out, and NVIDIA powers on.

A federal trade court has struck down the reciprocal tariffs that President Trump imposed on what he called Liberation Day. The ruling puts an immediate stop to the collection of a sweeping set of levies that the president imposed. The three-judge panel on the U.S. Court of International Trade ruled that President Trump exceeded his authority on the April 2nd tariffs placed on more than 180 countries and territories.

The court wrote in a summary judgment that the Constitution assigns Congress the exclusive powers to lay and collect taxes, duties, imposts, and excises, and to regulate commerce with foreign nations. The Trump administration will appeal the ruling, but considering that the suing plaintiffs sought narrow relief, tariff collection will stop immediately, barring an emergency stay.

Elon Musk is stepping down from his role as a senior advisor to President Trump. In a post on his social media platform, X, Musk thanked Trump for the opportunity to lead the Department of Government Efficiency, commonly referred to as DOGE. He wrote that the department's mission will only strengthen over time as it becomes a way of life throughout the government.

Since the start of Trump's second term in January, Musk has headed the Department of Government Efficiency, where he was charged with significantly reducing the size of the federal government. However, the Tesla and SpaceX CEO's exit comes after he criticized Trump's big, beautiful budget bill, the legislative centerpiece of the president's agenda.

In an interview that will be aired this Sunday, June 1st, on CBS Sunday Morning, Musk said the Big Beautiful Bill will not help the nation's finances. In a clip, he goes on to say that the bill undermines the work that the Doge team is doing.

NVIDIA's CEO said Wednesday that Chinese AI companies are stepping in to fill the gap left by the exit of U.S. firms from the market, and their technologies are rapidly gaining strength. Jensen Wang said in an interview with Bloomberg Television that the Chinese competitors have evolved.

Huawei Technologies, a Chinese company blacklisted by the U.S. government, has become quite formidable, he said. U.S. export restrictions to China have effectively shut NVIDIA out of the world's largest chip market, and the company now expects to forfeit around $8 billion in sales as a result in the second quarter.

However, NVIDIA is up 5% in pre-market action after the company reported fiscal first quarter results and guidance that topped expectations, despite the impact of added export control curbs to China. Now, I'd like to point out three other articles that are trending on Seeking Alpha. The U.S. pauses exports of airplane engine tech to China, according to a report.

Google starts direct online sales in India of Pixel smartphones. And Tesla eyes June 12th as the launch date for its robo-taxi service in Austin. Our Catalyst watch for the day is pretty light. Ashland will hold its Innovation Day for analysts and investors at the company's New Jersey facility. The event will showcase the enhanced capabilities and expanded applications of Ashland's scalable technology platforms.

On Wall Street today at this early hour, Dow, S&P and Nasdaq futures are in the green, up in the range of 1 to 2 percent. Crude oil is up 1.2 percent at 62 dollars a barrel. Bitcoin is up 0.6 percent at 108,000. Gold is down 0.2 percent at 3,279 dollars.

The FTSE 100 is flat, the same as this time yesterday, and the DAX is up 0.5%. HP is on our list of the biggest movers of the day pre-market. HPQ is down 8% after the company reported mixed fiscal Q2 results and issued disappointing guidance, sparking investor concern.

It's a busy economic calendar for today. At 8:30 a.m., GDP. Also at 8:30 a.m., the Fed's Thomas Barkin will participate in a fireside chat before the Housing Partnership Network. At 10 a.m., the pending Home Sales Index.

At 1040 a.m., the Fed's Austin Goolsbee will participate in a moderated Q&A session hosted by the Detroit Regional Chamber. At noon, the EIA Petroleum Status Report. And at 4 p.m., the Fed's Mary Daly will participate in a fireside chat before the Oakland Rotary Club.

That's it for today's Wall Street Breakfast. Thanks for listening. To take full advantage of Seeking Alpha, join the highest quality community of real investors discussing stocks and ETFs at seekingalpha.com slash subscriptions. I'm your host, Julie Morgan. Go out and make it a great day.