The S&P 500 index experienced a notable increase of 0.69%, closing at 6,909.51, propelled by a Supreme Court ruling regarding tariffs that prompted a widespread relief rally. The Nasdaq Composite saw a 0.90% rise, ending at 22,886.07, while the Dow Jones Industrial Average climbed 0.47% to 49,625.97. This upward momentum came despite a mixed bag of macroeconomic data highlighting persistent economic challenges.
Tariff beneficiaries saw impressive gains, particularly in the e-commerce sector. Companies like Wayfair, Amazon, eBay, and Etsy reported significant stock price increases, with Etsy surging 8.39% to finish at $52.18 after exceeding earnings expectations for the fourth quarter. Other tech giants also experienced upward movement, with Alphabet climbing over 4% and Micron Technology gaining traction amid optimism surrounding artificial intelligence and memory technologies.
The day’s trading was marked by volatility following the Supreme Court’s decision, which concluded that the government had overstepped its authority by utilizing federal emergency powers to impose tariffs. In response to the ruling, former President Trump announced an alternative strategy that would implement a 10% global tariff using a different trade law. This news caused the dollar to weaken while stock prices rebounded from earlier dips. The major stock indices closed the week on a positive note, despite underlying economic concerns.
Meanwhile, major companies such as Costco and Toyota are preparing to seek reimbursement for approximately $170 billion in tariffs they have already incurred. This anticipation comes in the wake of the Supreme Court’s ruling, which has cast a shadow over ongoing efforts to navigate the complexities of tariff policies.
In contrast to the market’s positive momentum, the Bureau of Economic Analysis released disappointing economic data, revealing that GDP growth for the fourth quarter of 2025 was only 1.4% year over year. This figure was below expectations and significantly lower than the 4.4% growth reported in the previous quarter, with the prolonged government shutdown impacting economic performance.
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