New York (CNN) — Stocks were mixed Thursday after a federal court ruled late Wednesday that President Donald Trump overstepped his authority to impose sweeping tariffs, throwing into chaos the administration’s core trade policy that has threatened to raise prices for businesses and slow the economy.

Investors initially cheered, but not overwhelmingly — and a morning rally lost steam on Thursday as investors assessed the potential outcome for Trump’s tariffs.

The Dow was down 240 points, or 0.58%, Thursday midday. The S&P 500 slid 0.2% and the tech-heavy Nasdaq Composite hovered around the flatline. Stocks received a boost from Nvidia’s strong earnings Wednesday, but the rally faded amid trade war uncertainty.

Gains were muted because the fate of Trump’s tariffs remains unclear .

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