SPDR S&P 500 ETF Rises 0.72% as Tariffs Reversed; Small-Cap Momentum Fades
SPDR S&P 500 ETF Trust closed up 0.72% at $689.43 after a 6-3 Supreme Court vote struck down emergency-law tariffs, which Cathie Wood says will act as a growth catalyst by removing “tax increases.” The Russell 2000 is holding its 50-day moving average while momentum falls below that level, a signal that weakening small-cap leadership could slow the broader market recovery including the S&P 500.
1. Supreme Court Ruling Drives SPY Rally
A 6-3 Supreme Court decision invalidated emergency-law tariffs imposed under executive authority, prompting the SPDR S&P 500 ETF Trust to gain 0.72% and close at $689.43. Equity markets showed resilience, reflecting broad anticipation of the judicial check on tariff policy.
2. Wood Sees Tariffs as Growth Catalyst
Cathie Wood characterized the struck-down duties as “tax increases” that burdened consumers and corporations, arguing their removal is equivalent to a tax cut. She highlighted the weak 1.4% real GDP growth in Q4 as evidence that tariff relief should accelerate economic expansion over the coming months.
3. Small-Cap Signal Warns Market Leadership Shift
The Russell 2000 ETF is holding its 50-day moving average, but its momentum indicator has dipped below that trendline. With the S&P 500 ETF still struggling to reclaim its own 50-DMA, declining small-cap leadership could pose a headwind to broader market gains.