Stocks Rise Anew, Bonds Fall on Trump Tariff Talk: Markets Wrap

(Bloomberg) — Stocks advanced while bonds held losses along with the dollar after President Donald Trump pledged to defend his tariff program after the Supreme Court struck it down.

About 320 shares in the S&P 500 rose. Trump, rebuked by justices earlier in his bid to impose far-reaching tariffs, said he’ll sign an order imposing a 10% global levy on trading partners, and claimed that various categories of his existing program will remain in place. Still, uncertainties about any potential budget shortfall kept a lid on the greenback and Treasuries.

“The Supreme Court did not overrule tariffs, they merely overruled a particular use of IEEPA tariffs,” Trump told reporters at the White House on Friday, referencing the emergency authorities that the high court found illegal. “Now I’m going to go in a different direction, probably the direction that I should have gone the first time.”

Asked if he would go to Congress, Trump said “I don’t need to” because the authorities he is seeking are already approved. The president said if he did ask Congress for additional tariff authority, he believed he would probably get it.

Ahead of the ruling, Trump warned that curtailing his tariffing power would unleash an economic crisis akin to the 1929 crash. He said it would mean forgoing trillions of dollars that could help pay off America’s huge public debt.

Thousands of companies and importers are set to launch what could be a prolonged battle to try to recoup as much as $170 billion in tariffs they’ve already paid to the US government. The top court was silent on the topic of refunds when it ruled Friday that Trump didn’t have legal authority to impose the duties under an emergency law.

“We are not revising our US economic outlook as we expect tariffs to remain through other avenues,” said TD Securities strategists.

The S&P 500 rose 0.6%. The yield on 10-year Treasuries advanced two basis points to 4.08%. The dollar fell 0.2%, snapping a four-day advance. An ETF tracking emerging markets jumped toward a record.

“The market is uncertain about how to react given the lack of clarity on the exact details of the forthcoming executive order,” said Gennadiy Goldberg at TD Securities.

Neil Dutta at Renaissance Macro Research says there’s a vast legal architecture that Trump can draw from to prosecute the court ruling.

“The issue is if he does not dial the tariff threat back on, he basically looks like a ‘lame duck’,” Dutta said. “If Trump turns the trade knob back on, we get more uncertainty. If he decides to give in, then he is basically cooked politically.”

For now, Glen Smith at GDS Wealth Management and James Athey at Marlborough Investment Management said they would not be making any changes in reaction to the court decision.

In general, investor interest in both the Supreme Court review and tariffs overall appear to have waned in recent months, noted Michael Bailey at FBB Capital Partners.

Looking ahead, tariff policy is more likely to be recalibrated than repealed, according to Bret Kenwell at eToro.

“The best-case outcome is a framework that’s clearer and more consistent — and therefore less prone to headline-driven whiplash. If that’s what emerges, added certainty could be a net positive for risk assets, potentially giving investors room to lean back into a more risk-on posture,” he said.

On the economic front, inflation-adjusted gross domestic product increased an annualized 1.4% in the fourth quarter after rising 4.4% in the prior period. Overall, the economy expanded 2.2% last year. Separately, data showed the Fed’s preferred measure of underlying inflation — the core personal consumption expenditures price index — rose 0.4% in December, the most in nearly a year. On an annual basis, the core PCE climbed 3%.

Today’s economic data delivered a “messy message” of both hotter-than-expected inflation, and slower-than-anticipated growth, according to Art Hogan at B. Riley Wealth.

“The confusing message from today’s data confirms the current Fed bias to take their time with monetary policy,” he said.

Corporate Highlights:

Paramount Skydance Corp. said it has “no statutory impediment” in the US for closing its proposed $77.9 billion acquisition of Warner Bros. Discovery Inc., after it cleared a US antitrust hurdle. A Securities and Exchange Commission probe involving mobile advertising technology company AppLovin Corp. is “still active and ongoing,” the regulator said Friday. The US Federal Aviation Administration’s oversight of United Airlines Holdings Inc.’s maintenance practices suffers from a lack of resources, meaning some safety risks remain, a government watchdog said. Lucid Group Inc. is slashing its workforce following a difficult 2025 for the electric vehicle maker, which struggled to boost production in a volatile auto market. The biggest US troop deployment in the Middle East since the Iraq War is sending the black market price for Elon Musk’s Starlink terminals soaring in Iran, where people fear a war would trigger another countrywide internet shutdown. Akamai Technologies Inc. gave an outlook for adjusted earnings that is weaker than expected for both the first quarter and the full year. Newmont Corp. — the world’s biggest gold miner — expects to churn out less bullion this year, partly due to planned upgrades at some of its managed mines and lower production at two ventures jointly owned with Barrick Mining Corp. The Missouri judge overseeing Bayer AG’s effort to resolve current and future Roundup lawsuits through a class-action case is known as a no-nonsense jurist who will closely scrutinize the proposed $7.25 billion settlement. Some of the main moves in markets:

Stocks

The S&P 500 rose 0.6% as of 2:15 p.m. New York time The Nasdaq 100 rose 0.8% The Dow Jones Industrial Average rose 0.3% The MSCI World Index rose 0.5% Bloomberg Magnificent 7 Total Return Index rose 1.5% Philadelphia Stock Exchange Semiconductor Index rose 0.9% IShares Expanded Tech-Software Sector ETF fell 0.7% The Russell 2000 Index was little changed S&P 500 Equal Weighted Index rose 0.3% Currencies

The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.1% to $1.1785 The British pound rose 0.2% to $1.3492 The Japanese yen was little changed at 154.98 per dollar Cryptocurrencies

Bitcoin rose 1.2% to $67,729.26 Ether rose 1% to $1,967.3 Bonds

The yield on 10-year Treasuries advanced two basis points to 4.08% Germany’s 10-year yield was little changed at 2.74% Britain’s 10-year yield declined one basis point to 4.35% The yield on 2-year Treasuries advanced two basis points to 3.48% The yield on 30-year Treasuries advanced three basis points to 4.73% Commodities

West Texas Intermediate crude fell 0.1% to $66.36 a barrel Spot gold rose 1.5% to $5,069.74 an ounce –With assistance from Denitsa Tsekova, Vildana Hajric and Chris Nagi.

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