Wall Street advanced sharply after the US Supreme Court struck down President Donald Trump’s global tariff regime, a ruling that investors interpreted as a significant easing of policy uncertainty and a potential reset in US trade relations. Major indices ended higher as markets welcomed the prospect of lower import costs, reduced inflationary pressure and a diminished risk of retaliatory trade measures from key partners.
US markets traded higher following the ruling, with the Dow Jones Industrial Average up about 0.4 per cent near 49,600, the S&P 500 rising around 0.5 per cent to about 6,900, and the Nasdaq Composite gaining roughly 0.7 per cent to hover around 22,800.
The rally reflected relief across sectors that had been most exposed to tariff-related disruptions over the past years. Manufacturing firms, retailers and technology companies with complex global supply chains saw strong gains, as the court’s decision removed the legal foundation for sweeping duties that had weighed on margins and complicated sourcing strategies. Shares of import-dependent companies rose on expectations that costs would stabilise and that pricing pressures could ease in the months ahead.
US reports, quoting market participants, on Friday said the ruling made positive for the broader macroeconomic outlook. By curbing the executive’s ability to impose wide-ranging tariffs without congressional approval, the decision reduces the likelihood of sudden policy shocks that can roil markets. Analysts said the judgment brings greater predictability to US trade policy, an important consideration for investors already navigating uncertainty around interest rates, growth and geopolitics.
Bond markets reflected a similar sentiment, with yields easing modestly on expectations that reduced tariff-related inflation could give the Federal Reserve more room to manoeuvre on monetary policy. A rollback of broad-based duties is seen as lowering the risk of imported inflation, even if prices do not immediately return to pre-tariff levels. The dollar was mixed, as traders weighed improved trade prospects against shifting expectations for US economic policy.
Beyond the immediate market reaction, the ruling carries deeper implications for investors. The Supreme Court’s decision reinforces congressional primacy over trade and taxation, signalling that future administrations may face tighter legal constraints when attempting to use emergency powers to reshape economic policy. For markets, this judicial check is seen as a stabilising force that limits abrupt, unilateral actions with large economic consequences.
Internationally, the verdict raised hopes of a calmer trade environment. Investors expect the decision to reduce the risk of retaliatory tariffs and trade disputes that had previously clouded the outlook for global growth. Asian and European markets also edged higher, tracking Wall Street’s gains and reacting to the prospect of a more predictable US trade stance.
However, analysts cautioned that the ruling does not eliminate all trade frictions. Some sector-specific and country-specific tariffs imposed under other laws remain in place, and broader questions around industrial policy, supply chain security and strategic competition are far from settled. As a result, while the court’s decision removes a major overhang, it does not signal an immediate return to unfettered free trade.
Wall Street’s rise underscored how closely markets had tied Trump’s tariff regime to economic risk. By striking down the global duties, the Supreme Court not only reshaped the legal boundaries of US trade policy but also delivered a confidence boost to investors, who see the ruling as a step towards greater policy clarity and a more stable environment for business and investment, said analysts spoke to US financial media.