US stocks rally after Supreme Court strikes down Trump's global tariffs. Dow jumps 207 points, Nike and Abercrombie surge, dollar slips and Treasury yields rise.
S&P 500 Nasdaq Jump 0.5-0.7% as Supreme Court Strikes Down Trump's Global Import Duties (Image: File)
US stocks surged Friday following the Supreme Court's 6-3 decision to strike down President Donald Trump's sweeping Liberation Day tariffs under the 1977 International Emergency Economic Powers Act. Major indexes like the Dow, S&P 500, and Nasdaq climbed as investors cheered relief for tariff-battered retailers and transportation firms.
The Dow Jones Industrial Average jumped 207.03 points, or 0.42%, to close at 49,602.19, rebounding from early dips tied to weak GDP data. The S&P 500 rose 33.44 points, or 0.52%, to 6,895.33, while the Nasdaq Composite gained 153.93 points, or 0.68%, to 22,836.66.
Transportation and retail stocks led, with tariff-exposed names like Nike and Abercrombie & Fitch posting strong gains. European autos and Asian-listed shares from South Korea to India followed suit. Broader relief hit importers facing higher costs.
Retailers rallied sharply: Nike climbed amid lower import cost hopes, Abercrombie & Fitch surged, alongside Floor & Decor, RH, and Wayfair. The Street SPDR S&P Retail ETF hit session highs up 1.8% before pulling back.
Transportation firms benefited from eased global trade fears. Tech heavyweights in Nasdaq added fuel, with megacaps like Amazon up over 2% and Alphabet nearing 4%. Industrials like Caterpillar and Home Depot turned positive.
Benchmark 10-year Treasury yields edged up 2 basis points to 4.096%, with 30-year notes climbing to 4.753% from 4.704%. Investors eyed potential federal revenue hits from lost tariffs. The US dollar depreciated versus key currencies, benefiting exporters. This alleviated inflation concerns based on recent data. Yields moved inversely to prices amid shifting trade outlooks.
Declared "Liberation Day" on April 2, 2025, the tariffs imposed by IEEPA will be 10% on all imports and 15-50% on most countries. Trump declared trade deficits a national emergency, starting in February 2025. Thousands of companies sued for refunds; many rates got renegotiated lower. The court ruled no clear congressional nod, voiding them. Other non-IEEPA tariffs remain.
A: Dow +0.42% to 49,602.19; S&P 500 +0.52% to 6,895.33; Nasdaq +0.68% to 22,836.66.
A: Nike, Abercrombie & Fitch, Floor & Decor, RH, Wayfair led gains.
A: 10-year up to 4.096%; 30-year to 4.753%.
A: Slipped against major currencies.
A: April 2, 2025, under IEEPA with 10% baseline plus higher rates.
Disclaimer: This article is based on official agency reports, market data, and statements from involved parties as of February 20, 2026. Further developments may occur regarding refund processes and alternative tariff actions.
