Wall Street stocks climbed Friday following a US Supreme Court ruling that struck down certain presidential tariff powers, a decision that overshadowed disappointing economic data. The S&P 500 closed up 0.7 percent after a volatile trading session.
The court ruled six-to-three that a 1977 law does not grant the president authority to impose tariffs. Analysts suggest this outcome was anticipated, leading to a muted market response. However, the long-term implications and potential for policy shifts continue to fuel market uncertainty.
Some experts predict the ruling could contribute to lower inflation, potentially bolstering expectations for Federal Reserve rate cuts. Others view the situation as fundamentally unpredictable. The administration has signaled its intent to offset any revenue loss from revoked tariffs.
Globally, Asian markets showed mixed performance, with Hong Kong and Tokyo declining while South Korea's Kospi index reached a record high. In Europe, eurozone business activity accelerated, and London and Paris stock indices hit new records.
Oil prices stabilized after recent surges linked to geopolitical tensions. Meanwhile, US economic growth for the fourth quarter was revised downward to a 1.4 percent annual rate, impacted by a government shutdown.