Dow Gains 0.44% After Tariffs Blocked; Q4 GDP at 1.4%
Supreme Court ruled most of President Trump's proposed tariffs would not be implemented, sending the Dow up 0.44% on Friday and finishing the week positive alongside the S&P 500 and Nasdaq. GDP data showed Q4 growth at 1.4%, missing the 2.5% forecast, while Trump announced a 10% global tariff threat.
1. Supreme Court Blocks Most Tariffs
The U.S. Supreme Court ruled that the majority of the administration’s proposed tariffs cannot be implemented, removing a key overhang for equity markets. This decision directly boosted investor confidence, driving the Dow up 0.44% on Friday and securing a weekly advance.
2. Weekly Market Performance
The Dow, S&P 500 and Nasdaq all posted weekly gains following the ruling, overcoming earlier volatility tied to geopolitical concerns. Broad strength in industrials and consumer discretionary stocks underpinned the turnaround after a choppy trading week.
3. Q4 GDP Misses Expectations
Fourth-quarter GDP came in at 1.4%, well below the consensus forecast of 2.5%, reflecting slower consumer spending and business investment. Investors largely shrugged off the growth shortfall given the bullish tariff news.
4. President Announces 10% Global Tariff
In response to the court’s decision, President Trump vowed to impose a 10% tariff on all imports, signaling further escalation in trade policy. Markets will watch closely for details and potential sector impacts as negotiations unfold.