U.S. and European stocks advanced, and Treasury yields rose, as markets reacted to the Supreme Court striking down President Trump's tariffs. The ruling has significant implications for the global economy.
Analysts suggest the tariffs may have harmed the economy, a sentiment echoed by recent weak GDP reports. The Supreme Court's 6-3 decision invalidated tariffs enacted under emergency law, a move expected to benefit corporate earnings.
Economic data released Friday showed U.S. fourth-quarter GDP growth decelerated sharply to 1.4 percent. Inflation, measured by the Federal Reserve's favored PCE price index, also showed an uptick in December.
Major U.S. stock indexes saw immediate gains following the ruling. The Dow Jones Industrial Average rose, the S&P 500 climbed, and the Nasdaq Composite posted solid gains. European stocks, including the STOXX 600, also extended their advances.
Gold prices experienced volatility, initially paring gains from safe-haven demand driven by geopolitical tensions and economic data. U.S. Treasury yields increased across benchmarks, including the 10-year and 30-year notes.
The dollar weakened slightly after the tariff decision but remained on track for its largest weekly gain since October. In cryptocurrencies, Bitcoin and Ethereum saw modest gains. Crude oil prices eased but were poised for a weekly gain amid rising U.S.-Iran tensions.