Following the landmark decision by the U.S. Supreme Court to invalidate most of President Donald Trump’s signature tariffs, financial markets reacted positively, with major indices posting gains.
After the 6–3 ruling, the S&P 500 climbed 0.6%, while the Nasdaq advanced 1%. Global markets also responded favorably, with European shares, as well as markets in South Korea and India, recording gains.
Companies with significant exposure to tariffs saw the strongest benefits. Amazon rose 2%, reflecting investor optimism as the company sources nearly 70% of its goods from China.
Footwear manufacturers Deckers Outdoor, Birkenstock, and Crocs each gained more than 2%. Furniture retailers Wayfair and Floor & Decor posted even stronger performances, rising by approximately 4%.
Despite the market rally, uncertainty remains. The court did not directly address whether businesses would be able to reclaim billions of dollars already paid in tariffs.
Justice Brett Kavanaugh noted that the ruling “says nothing about whether, and how, if so, the Government should go about returning the billions of dollars that it has collected.”
Concerns also emerged about the potential fiscal impact of any large-scale refunds. Treasury yields edged higher amid fears that repayments could widen the federal deficit, with the 10-year yield rising 2 basis points to 4.096%. The U.S. dollar weakened slightly.
The decision comes at a time of softer-than-expected economic data. Gross domestic product expanded at an annualized rate of 1.4% in the fourth quarter, below forecasts and partly attributed to the government shutdown.
Meanwhile, core inflation remained elevated at 3%, still above the Federal Reserve’s 2% target.
