Stocks rise as Supreme Court tariff ruling outweighs soft U.S. data

Macquarie Warrants Singapore
02-23 08:55

S&P 500: 6,909.51 (+0.7%)

Nasdaq-100: 25,012.62 (+0.9%) 

DJIA: 49,625.97 (+0.5%)

Eurostoxx: 6,131.31 (+1.2%)

U.S. crude futures: $66.48 (+0.1%)

U.S. equities finished higher on Friday as a landmark Supreme Court ruling unwinded much of President Donald Trump’s tariff regime, which lifted stocks and overshadowed softer macro data. All three indices had opened weaker but reversed after the Court ruled that Trump lacked authority to levy tariffs under a 1970s statute, effectively nullifying a large portion of existing duties. Although the president quickly vowed to implement new 10% global tariffs under alternative legal avenues, markets welcomed the temporary reprieve for trade‑exposed technology and consumer giants. The tariff-driven optimism helped offset a pair of disappointing economic releases. December Personal Consumption Expenditures (PCE) inflation accelerated to 3%, above expectations and well above the Federal Reserve’s 2% target, clouding prospects for near‑term rate cuts. Meanwhile, Q4 Gross Domestic Product (GDP) slowed sharply to 1.4%, partly due to the prolonged government shutdown. 

Tariffs Return After Supreme Court Ruling: Will Market Face Another Hit?
The Supreme Court struck down Trump’s IEEPA tariff framework (6–3), but within 48 hours the White House pivoted—invoking Section 122 to impose a 15% global tariff effective Feb 24. Markets reacted instantly: futures slipped as investors refocused on one variable—corporate costs. History suggests policy shocks trigger 1%–2% pullbacks, then stabilize if earnings stay intact. But this time tariffs are broader, and valuations are elevated Is this another short-term volatility spike—or the start of margin compression?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment