US stocks advanced on Friday, with the S&P 500 climbing 0.7% and the Nasdaq gaining 1%, after the Supreme Court struck down President Trump’s reciprocal tariffs. The Dow rose 200 points, reversing early losses despite a soft 1.4% GDP reading, which was dragged lower by the government shutdown.
The Court ruled that the administration lacked authority under the International Emergency Economic Powers Act (IEEPA) to impose such broad-based duties. In response, Trump moved quickly to announce a new 10% global tariff via executive order, setting the stage for fresh trade uncertainty.
Amazon and Home Depot each advanced about 2% as investors weighed the potential for roughly $175 billion in tariff refunds against the risk posed by the newly announced levies. Strength in big-cap technology helped the Nasdaq break a five-week losing streak, even as core PCE inflation remained stubborn at 3%, keeping the Federal Reserve cautious about the policy outlook.
Traders now face a renewed tug-of-war: the clearing away of the original tariff overhang is being offset by the threat of fresh protectionist measures and a more forceful stance from the White House. Market action remains highly volatile as investors digest the combination of legal setbacks for the administration and a new round of trade mandates.
