Court Ruling Lifts Tariffs, Trump Responds with 10% Global Duty: Wall Street Swings Amid New Trade Uncertainty

New York | EcoPulse24

U.S. stocks experienced a volatile session after the Supreme Court overturned reciprocal tariffs imposed by the Trump administration, a legal move that immediately reshaped trade risk perceptions. The ruling eased pressures on trade-sensitive sectors, but the White House rapidly issued an executive order imposing a 10% global tariff, reintroducing uncertainty and sparking a tug-of-war between immediate relief and potential escalation.

The S&P 500 rose 0.7%, the Nasdaq gained 0.9%, and the Dow Jones added 0.5% after rebounding from early losses. In after-hours trading, the S&P 500 held a 0.6% gain, the Nasdaq 0.8%, and the Dow 0.2%. The Nasdaq ended a five-week losing streak, led by strong tech performance. Amazon climbed 2% to 2.6% as import cost concerns eased, Alphabet rose 3.7% to 4%, and Home Depot advanced about 1%. In contrast, Newmont fell roughly 4% due to weaker production guidance.

The court found the administration had exceeded its authority under the International Emergency Economic Powers Act, prompting a wave of buying in trade-linked and supply chain sectors. However, the new 10% tariff revived fears of inflation and margin pressures. Economic data added complexity: Q4 GDP grew 1.4%, below forecasts, while core PCE inflation stayed at 3%, leaving the Fed data-dependent and cautious.

Trading was choppy, with liquidity shifting quickly between sectors. Tech and consumer goods stocks sensitive to tariffs benefited from the tariff removal, while precious metals stocks faced pressure on production news.

Investors estimated that removing the previous tariffs could lead to up to $175 billion in potential refunds, supporting shares of companies directly impacted by import costs. However, the 10% global tariff sets a new risk pricing framework, likely affecting input costs, product pricing, inflation, and stock valuations, especially amid slower economic growth.

The developments show the market caught between reassuring legal signals and new executive action reshaping trade rules. Tech stocks led the rebound as risk appetite improved, while industrials remained under scrutiny for potential tariff impacts. With core inflation steady at 3%, the Fed remains cautious, adding discipline to any stock rally.

EcoPulse24 Analysis:
The court decision removed an immediate source of uncertainty but did not end the tariff battle. The swift move to a 10% global tariff shifts risks from "full removal" to "recalibration." The market appears stuck between short-term legal relief and ongoing political uncertainty, keeping volatility high. Tech sector strength reflects investor sensitivity to lower import costs, while limited growth and inflation remain headwinds to sustained optimism.