The major stock indexes rose sharply in the minutes after the decision
The Supreme Court ruled Friday that President Donald Trump could not impose sweeping tariffs under the International Economic Emergency Powers Act, immediately triggering a U.S. stock surge.
The U.S. dollar jumped against other currencies, such as British sterling, the Euro and Japan’s yen, a signal that investors view the Supreme Court decision favorably. The dollar’s strength can often mean trust in U.S. assets and stability.
The tech-heavy Nasdaq Composite Index rose about 1% in late-morning trading. The S&P 500, the broadest and most-watched index, leapt almost 0.7%, while the Dow Jones Industrial Average rose 0.2%.
The yields on U.S. Treasury bonds jumped across maturities. Yields on the 10-year bond, which mortgage rates often track closely, rose to 4.09%. The 30-year Treasury yield rose to 4.74%.
The 6-3 decision from the conservative court was its first major ruling against Trump’s controversial expansive use of presidential power.
Trump reportedly called the supreme court’s decision a “disgrace” at a White House breakfast meeting with US governors, CNN reported.
Republican Senator Rand Paul welcomed the supreme court’s ruling.
“The Supreme Court makes plain what should have been obvious: ‘The power to impose tariffs is ‘very clearly a branch of the power to tax’,” he wrote on social media, referring to the court’s decision that Trump could not use the IEEPA and side-step Congress to implement the sweeping global tariffs.
Companies whose businesses are heavily exposed to tariffs, such as retailers and appliance makers, immediately became some of the best performing stocks of the day
Apple, Ford, Coca-Cola and Target were some of the companies that saw an immediate surge after the ruling.
