The Supreme Court struck down President Trump's sweeping tariffs, leading to a calm but positive reaction on Wall Street as stocks ticked higher. However, Trump quickly vowed to implement new tariffs through alternative methods, keeping the trade landscape uncertain. Meanwhile, mixed economic reports and company-specific news also influenced market movements.
Wall Street remained calm and stocks rose slightly on Friday after the Supreme Court struck down President Donald Trump's major tariffs, a ruling many investors had anticipated. The Dow Jones Industrial Average gained 0.5%, and the Nasdaq composite rose 0.9%. Despite the ruling, President Trump quickly announced his intention to impose new tariffs through other avenues, including an executive order for a 10% global tariff for 150 days and investigations via the Commerce Department, ensuring tariffs would not disappear. Market reactions were tentative, with Treasury yields edging slightly higher, and the U.S. dollar weakening against other currencies. Ralph Lauren's stock saw fluctuations but ultimately closed up 2.2%, while gold briefly dipped before recovering. Elsewhere, discouraging reports on slowing U.S. economic growth and accelerating inflation had a muted impact, with traders still expecting the Federal Reserve to cut interest rates at least twice this year, though potentially later in the summer. Company-specific news also moved markets; Akamai Technologies fell 14.1% on a weak profit forecast linked to AI boom-driven memory shortages, while Comfort Systems surged 6.5% after reporting strong profits and 'unprecedented demand.' European stock indexes added to gains, while Asian markets were mixed, with South Korea's Kospi reaching a record high.
