S&P 500 rises in volatile trading after Supreme Court knocks down Trump’s emergency tariffs

Stocks swung wildly on Friday after the U.S. Supreme Court struck down President Donald Trump’s tariffs, raising uncertainty around Trump administration’s next course of action and what the ruling means for the impacted businesses.

The S&P 500 moved up 0.4%, while the Nasdaq Composite rose 0.6%. The Dow Jones Industrial Average traded around the flatline.

The Supreme Court ruled against most of Trump’s sweeping tariff policy under the International Emergency Economic Powers Act, with the majority ruling that that law “does not authorize the President to impose tariffs.”

Equities surged on the announcement, as investors viewed the decision as potentially providing relief for companies burdened by higher costs from the duties. It also eased concern about sticky inflation still plaguing the U.S. economy. The S&P 500 gained 0.7% at its peak, while the Nasdaq advanced 1.2% and the 30-stock Dow climbed more than 300 points, or 0.6%.

Shares of “Magnificent Seven” member Amazon — a company that sources up to 70% of its goods from China, per Wedbush Securities, and that has already begun to see tariffs impact the price of certain items — jumped 2% following the ruling. Others such as Home Depot were higher as well.

“In the case of Amazon specifically, a lot of their stuff is imported from China, so tariffs are going to make the prices on Amazon go up for customers, and when prices go up, people buy fewer of those things,” said Jed Ellerbroek, portfolio manager at Argent Capital Management. “No longer facing that problem is the source of excitement, I think.”