S&P 500 and Nasdaq Jumps After Supreme Court Blocks Trump Tariffs

This article first appeared on GuruFocus.

U.S. stocks rose on Friday after the Supreme Court ruled that most of the tariffs imposed by former President Trump were illegal.

The Nasdaq Composite gained about 1%, the S&P 500 climbed roughly 0.6%, and the Dow Jones Industrial Average edged up 0.2%. The moves followed a day of losses as oil prices reached six-month highs amid U.S.-Iran tensions.

The court found in a 6-3 ruling that Trump exceeded his authority under the International Emergency Economic Powers Act of 1977. Tariffs imposed under other laws, including steel and auto measures, remain in place.

Stocks in sectors exposed to tariffs jumped. Footwear makers Deckers Outdoor (NYSE:DECK), Birkenstock (BIRK), and Crocs (NASDAQ:CROX) rose more than 2%. Furniture stocks Wayfair (NYSE:W) and Floor & Decor (NYSE:FND) gained over 4%, while Williams Sonoma (NYSE:WSM) climbed nearly 2%.

Big tech mostly advanced. Alphabet (GOOG) rose 3%, Amazon (NASDAQ:AMZN) and Meta (NASDAQ:META) gained about 2%, Nvidia (NASDAQ:NVDA) and Apple (NASDAQ:AAPL) inched higher. Microsoft (MSFT) and Tesla (NASDAQ:TSLA) were marginally lower.