U.S. stocks closed a tumultuous week on a high note Friday as the Supreme Court delivered a landmark ruling striking down President Donald Trump's sweeping tariff policy, sending major indices higher and snapping the Nasdaq's longest losing streak in nearly four years.
Weekly Performance Summary
| Index | Weekly Change | Friday Close |
|---|---|---|
| S&P 500 | +1.1% | 6,909.51 |
| Nasdaq Composite | +1.5% | 22,886.07 |
| Dow Jones | +0.3% | 49,625.97 |
Supreme Court Strikes Down Trump Tariffs
In a decisive 6-3 ruling, the Supreme Court determined that the International Emergency Economic Powers Act “does not authorize the President to impose tariffs,” effectively invalidating Trump's emergency-based tariff policy. Chief Justice John Roberts delivered the majority opinion, with Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh dissenting.
The decision sent shockwaves through Washington and Wall Street. President Trump quickly responded, announcing plans to impose a new 10% “global tariff” through different legal authority. The ruling's immediate market impact was substantial, particularly benefiting companies with significant import exposure. Amazon, which sources up to 70% of its goods from China, jumped more than 2% following the announcement.
Nasdaq Snaps Historic Losing Streak
The technology-heavy Nasdaq Composite's 1.5% weekly gain marked a significant turning point, ending a five-week consecutive decline—its longest losing streak since May 2022. However, not all tech stocks participated in the rally. Cybersecurity companies faced pressure following Anthropic's announcement of its new Claude Code Security tool. CrowdStrike plunged 8%, Okta dropped 9.2%, and Zscaler declined 5.5%.
Economic Data Disappoints
Fourth-quarter GDP growth came in at just 1.4%, far below the 2.5% consensus forecast. The Commerce Department attributed much of the weakness to the record-breaking government shutdown. Core PCE inflation held steady at 3.0% in December, still well above the Fed's 2% target, reinforcing expectations that the Fed will maintain its pause on rate cuts.
The Tariff Refund Question
With an estimated $133.5 billion in tariff revenue potentially at stake, the question of refunds looms large. Wedbush analyst Dan Ives called the ruling “a net positive for tech” with potential refunds providing “financial relief for many companies while creating greater supply chain visibility.”
Looking Ahead
As markets head into a new week, investors face continued uncertainty. The Trump administration's promised new 10% global tariff raises questions about timing and scope. For investors, the week's events underscore the importance of diversification and patience. Companies with flexible supply chains and domestic production capabilities may be best positioned to navigate the evolving landscape.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly, and past performance does not guarantee future results. Always conduct your own research and consider consulting with a qualified financial advisor before making investment decisions.
