Stock Market Today Updates: Dow Jones jumps 130 points, S&P 500 and Nasdaq surge after Supreme Court strikes down Trump's global tariffs in 6-3 ruling, overcoming weak GDP and inflation data.
US Stock Market Today
US Stock Market Today Updates: US stocks rallied sharply on Friday, erasing early losses, after the Supreme Court delivered a landmark 6-3 ruling striking down President Donald Trump's sweeping global tariffs imposed under a 1977 emergency law. The decision provided immediate relief to thousands of import-dependent companies, helping the major averages recover from pressure following disappointing fourth-quarter GDP growth and higher-than-expected inflation data released earlier in the session.
The Dow Jones Industrial Average gained 130.43 points, or 0.26%, to close at 49,525.59 after falling more than 200 points earlier. The S&P 500 rose 0.66% to 6,907.34, while the tech-heavy Nasdaq Composite surged 1.11% to 22,935.19, led by gains in major technology and e-commerce names.
Markets turned broadly higher after the midday ruling, with advancers outpacing decliners as tariff-sensitive sectors led the rebound.
| Index | Close | Change | % Change |
|---|---|---|---|
| Dow Jones | 49,525.59 | +130.43 | +0.26% |
| Nasdaq | 22,935.19 | +252.46 | +1.11% |
| S&P 500 | 6,907.34 | +45.45 | +0.66% |
| NYSE | 23,371.34 | +13.07 | +0.06% |
The Dow climbed 0.26% to 49,525.59, recovering from a 200-point intraday deficit, with gains in retail and industrial names that benefit from lower import costs. Home Depot and Caterpillar turned positive following the ruling, while Walmart, which reported strong quarterly earnings Thursday, added 0.4% after earlier weakness.
The Nasdaq jumped 1.11% to 22,935.19, ending a five-week losing streak, as megacap technology stocks rallied. Amazon surged more than 2%, Alphabet gained nearly 4%, and Meta advanced 2% as investors priced in reduced cost pressures from the tariff reversal. Semiconductor stocks were mixed, with AMD rising 1.1% while Intel fell 1.9%.
The S&P 500 gained 0.66% to 6,907.34, with nine of 11 sectors finishing higher. Consumer discretionary led the advance, rising 1.8%, followed by technology and communication services. Energy stocks also gained as oil prices climbed on Iran tensions. Defensive sectors like utilities and consumer staples lagged.
The NYSE Composite edged up 0.06% to 23,371.34, reflecting broad-based but modest gains as volume remained elevated following the court decision. Small-cap stocks, which are more sensitive to domestic economic conditions, outperformed with the Russell 2000 rising 1.2%.
The Supreme Court ruled 6-3 that President Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) of 1977 to impose sweeping global tariffs. Chief Justice John Roberts authored the majority opinion, joined by conservative Justices Neil Gorsuch and Amy Coney Barrett—both Trump appointees—along with the court's three liberal justices.
"Based on two words separated by 16 others in Section 1702(a)(1)(B) of IEEPA—'regulate' and 'importation'—the President asserts the independent power to impose tariffs on imports from any country, of any product, at any rate, for any amount of time," Roberts wrote. "Those words cannot bear such weight."
The ruling applies to tariffs imposed under IEEPA beginning in February 2025, including levies on China, Canada and Mexico tied to fentanyl trafficking, and the broader "Liberation Day" reciprocal tariffs announced April 2, 2025, covering more than 100 countries. The decision does not affect tariffs imposed under other laws, such as Section 232 of the Trade Expansion Act of 1962 covering steel, aluminum, lumber and automobiles.
Earlier in the session, stocks faced pressure after the Commerce Department reported that fourth-quarter GDP grew at an annualized rate of just 1.4%, well below the 2.5% forecast by economists polled by Dow Jones. The department attributed approximately one percentage point of the shortfall to the record-breaking 43-day government shutdown that occurred during the quarter.
The third-quarter GDP advance had been a robust 4.4%, making the sharp deceleration particularly concerning for investors already worried about the economic outlook.
The Federal Reserve's preferred inflation measure, the Personal Consumption Expenditures (PCE) price index, revealed that core prices (apart from food and energy) increased by 0.4% in December, raising the annual rate to 3.0%, further compounding the mixed economic picture. Although expected, this number is still far higher than the Fed's 2% target, which heightens worries about ongoing inflationary pressures.
The report keeps the Federal Reserve in a difficult position as policymakers balance concerns about slowing growth against the need to contain inflation.
WTI crude rose 2.2% to above $66 per barrel, while Brent climbed to $71.60, up 11% monthly, as US-Iran nuclear tensions intensified following messaging from President Trump. Supply fears centered on the Strait of Hormuz, through which approximately 20 million barrels per day transit, supported energy prices despite the broader market's tariff-driven rally.
The December goods and services trade deficit jumped 33% to $70.3 billion, the second consecutive monthly record and well above the $55.5 billion forecast. The full-year 2025 deficit stood at $901.5 billion, unchanged year-over-year, with goods imports reaching a record $1.24 trillion, up 2.1% despite the tariff regime that was in place.
Walmart reported fourth-quarter net income of $5.25 billion (65 cents per share) with sales growth of 5.6% to $190.7 billion, but issued weak full-year guidance. Amazon's full-year 2025 revenue of $716.9 billion edged out Walmart's $713.5 billion, with e-commerce growth of 24% and advertising growth of 37% powering the online retailer past its brick-and-mortar rival.
MCX gold futures rose marginally by 0.05% to Rs 1,55,835 per 10 grams, while silver futures fell 0.98% to Rs 2,41,883 per kg. IBJA evening rates showed gold futures up 1.82% to Rs 1,54,735 per 10 grams and silver futures up 3.37% to Rs 2,44,772 per kg. Internationally, Comex gold futures fell 0.14% to $5,002.50 per ounce amid mixed market sentiments following the Fed's hawkish stance.
January cryptocurrency volumes reached $5.95 trillion, up 2.43% month-over-month, with spot volumes at $1.55 trillion. Bitcoin traded at $66,456, down 1.53% from the previous day and 30% lower than its $95,000 high, with 19.99 million BTC in circulation.
The afternoon reversal was mostly caused by the Supreme Court's tariff decision, which overshadowed the dismal GDP and inflation numbers from the morning. The ruling relieves thousands of businesses of a substantial financial burden and may result in the return of over $175 billion in previously collected tariffs, which could stimulate the economy. Following the decision, the VIX volatility index dropped 5% as uncertainty subsided.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice. TSG suggests that readers consult with a certified financial advisor before making any investment or money-related decisions. The stock market involves significant risk.
