The Dow Jones, Nasdaq, and S&P 500 quickly rose on Friday after the Supreme Court ruled that President Donald Trump’s ‘Liberation Day’ tariffs are illegal. The top court said that the president lacked the authority to impose tariffs.
The S&P 500 and the Dow Jones Industrial Average both moved up 0.4% on Friday. The Nasdaq Composite rose 0.6% at the time of writing this story. This comes after the three averages had opened the day’s session in the red.
Meanwhile, the yields on benchmark US Treasuries rose, with that on 10-year notes up 2 basis points to 4.096%. The dollar index weakened slightly and was last down 0.2% at 97.67.
Follow LIVE: Trump tariff live updates: US Supreme Court strikes down Trump’s global tariffs, judge says ‘he cannot’
Supreme Court’s ruling on tariffs
The Supreme Court ruled that Trump exceeded his authority in imposing a swath of tariffs on dozens of countries. The conservative-majority high court ruled six-three in the judgment, saying the International Emergency Economic Powers Act (IEEPA) “does not authorize the President to impose tariffs.”
The court noted that “had Congress intended to convey the distinct and extraordinary power to impose tariffs” with IEEPA, “it would have done so expressly, as it consistently has in other tariff statutes.”
Read More: Why has US Supreme Court struck down Trump’s global trade tariffs? A four-point explainer
The ruling does not impact sector-specific duties that Trump has separately imposed on imports of steel, aluminum and various other goods. This comes months after a lower trade court had ruled that Trump overstepped his authority with across-the-board levies and blocked most of them from taking effect.
GDP data comes out
Earlier in the day, it was revealed that the US economy grew less than expected at the end of last year, dragged down by a record-long government shutdown, consumer spending, and trade. Inflation-adjusted gross domestic product increased an annualized 1.4% in the fourth quarter after rising 4.4% in the prior period, according to the government’s initial estimate out Friday. Overall, the economy expanded 2.2% last year, data from the Bureau of Economic Analysis showed.
“The Democrat Shutdown cost the U.S.A. at least two points in GDP. That’s why they are doing it, in mini form, again. No Shutdowns! Also, LOWER INTEREST RATES. “Two Late” Powell is the WORST!!! President DJT” President Trump reacted to the GDP data on Truth Social.