US Stocks End Week Higher After Court Halts Trump Tariffs
European markets also reacted positively. The Euro Stoxx 50 climbed 1.2%, Germany’s DAX rose 0.9%, and France’s CAC 40 advanced 1.4%.
Quick overview
- The US Supreme Court ruled against the use of the International Emergency Economic Powers Act for imposing tariffs, positively impacting markets.
- Wall Street indexes rose following the ruling, with the S&P 500 up 0.7% and the Nasdaq Composite gaining 0.9%.
- European markets also saw gains, while Asian markets had mixed reactions after the court's decision.
- The ruling coincided with disappointing US economic data, including higher-than-expected inflation and lower GDP growth.
The ruling by the US Supreme Court invalidated the use of the International Emergency Economic Powers Act (IEEPA) to unilaterally impose sweeping tariffs — a development that was warmly welcomed by markets.
Wall Street’s main indexes advanced on Friday after the Supreme Court struck down a large portion of the tariffs imposed by US President Donald Trump. The decision came shortly after weaker-than-expected US economic data and signs of persistent inflation, adding further complexity to the macroeconomic backdrop.
In a 6–3 ruling, the Court upheld a lower-court decision that the president’s use of the International Emergency Economic Powers Act exceeded his executive authority, marking a significant legal setback for the administration’s trade strategy.
Following the ruling, the S&P 500 rose 0.7%, while the Nasdaq Composite gained 0.9%. The Dow Jones Industrial Average added 0.5%, while the Russell 2000 was flat, down just 0.01%.
European markets also reacted positively. The Euro Stoxx 50 climbed 1.2%, Germany’s DAX rose 0.9%, and France’s CAC 40 advanced 1.4%. In the UK, the FTSE 100 gained 0.6%.
Asian markets were mixed: Hong Kong’s Hang Seng fell 1.1%, South Korea’s Kospi surged 2.3%, and Japan’s Nikkei 225 declined 1.1%.
Weak data on inflation and growth
The court decision followed the release of two key US macroeconomic indicators that surprised investors. The Personal Consumption Expenditures (PCE) index — the Federal Reserve’s preferred inflation gauge — rose 2.9%, above expectations. At the same time, GDP growth for the final four months of last year came in at just 1.4%, roughly half of market forecasts and a sharp slowdown from the 4.4% recorded in the previous period.
Markets now largely expect the Federal Reserve to keep interest rates unchanged at its March policy meeting, with the first rate cuts not priced in until June, according to CME’s FedWatch tool.
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