US Stocks Rise After Supreme Court Blocks Trump’s Sweeping Tariffs
US stock markets climbed on Friday following a landmark Supreme Court ruling that invalidated President Donald Trump’s broad tariffs imposed under the International Emergency Economic Powers Act (IEEPA) of 1977. The court’s decision declared that the president overstepped his authority by applying duties without explicit Congressional approval, as the law is intended solely for genuine national emergencies.
The 6-3 ruling lifted investor sentiment, triggering gains particularly in transportation stocks and companies heavily exposed to tariffs, such as Nike and Abercrombie & Fitch. The US dollar weakened slightly while Treasury yields rose, according to a Wall Street Journal report.
Major indexes posted solid advances shortly after the announcement: the Dow Jones Industrial Average added 207.03 points, or 0.42%, to close at 49,602.19; the S&P 500 increased 33.44 points, or 0.52%, to 6,895.33; and the Nasdaq Composite rose 153.93 points, or 0.68%, to 22,836.66.
Overseas markets also reacted positively, with European automobile stocks and US-listed shares from countries including South Korea and India seeing notable gains. Benchmark US Treasury yields moved higher, with the 10-year note rising 2 basis points to 4.096%.
The tariffs were introduced by Trump in February 2005 under the 1977 sanctions law. His April 2 “Liberation Day” measures imposed a baseline 10% duty on all imports into the United States, along with additional tariffs ranging from 15% to 50% on imports from most countries, though many of these were subsequently renegotiated and reduced.