In one of the biggest Breaking News updates of the week, U.S. stock markets ended higher after the Supreme Court of the United States struck down the sweeping tariffs imposed last year by Donald Trump. The ruling was seen as a major setback for Trump’s trade policy, but investors welcomed the decision.
The market rally quickly became part of the Latest News and top Daily news highlights, as traders reacted positively to the court’s 6–3 decision. The justices ruled that the president had exceeded his authority by using emergency powers to place broad import taxes on most U.S. trading partners.
Stock Market Ends the Week Strong
Friday brought a wave of buying across major indexes:
- The Nasdaq Composite rose 0.9% on Friday. For the week, it gained 1.5% and ended a five-week losing streak.
- The S&P 500 climbed 0.7% on the day and finished the week up 1.1%.
- The Dow Jones Industrial Average increased 0.5%, posting a small weekly gain of 0.3%.
Investors were relieved that the court limited the president’s tariff powers. Many believe fewer trade restrictions could help businesses and lower uncertainty in the global economy.
However, the week was not smooth from start to finish. Just a day earlier, markets had fallen as oil prices hit a six-month high due to rising tensions in the Middle East.
Oil Prices and Middle East Tensions
Oil remained a major concern for investors. West Texas Intermediate crude ended the week near $66.50 a barrel. Even though prices were steady on Friday, they were up nearly 6% for the week.
The rise came as U.S. officials signaled they may take military action to stop Iran from developing nuclear weapons. There has been a large buildup of U.S. air and naval forces in the region. Experts warn that any conflict with Iran could disrupt shipping in the Strait of Hormuz, through which about 20% of the world’s oil passes.
Higher oil prices often increase inflation and create pressure on the US economy.
Inflation Data Raises Concerns
On the same day as the court ruling, new inflation data showed prices are still rising faster than expected.
The Personal Consumption Expenditures (PCE) index, which is closely watched by the Federal Reserve, rose 2.9% in December compared to a year earlier. Core inflation, which excludes food and energy, rose 3%.
The Federal Reserve uses core PCE as its main measure to decide interest rate policy. Its target is 2%, but inflation has stayed above that level for several years.
The inflation report was delayed due to last year’s government shutdown. Economists say the higher numbers could make the Fed more cautious about cutting interest rates.
Slower Economic Growth
Adding to the mixed signals, new data showed that the U.S. economy grew at a slower pace in the fourth quarter.
Gross Domestic Product (GDP) increased at an annual rate of 1.4%. This was much weaker than expected and sharply lower than the 4.4% growth seen in the third quarter.
Other economic updates showed:
- New home sales were stronger than expected.
- Consumer sentiment improved slightly.
- Manufacturing and services activity slowed down.
These reports show the economy is facing both positive and negative forces at the same time.
Big Tech and Individual Stocks
Technology stocks helped lead the market higher. Shares of Alphabet rose nearly 4%, while Amazon gained about 2.5%. Nvidia, Apple, and Meta each climbed more than 1%.
Meanwhile, Microsoft edged slightly lower, and Tesla ended flat.
Other notable stock moves included:
- AppLovin rose after reports it is working on launching its own social media platform.
- Grail plunged 50% after disappointing cancer trial results.
- Akamai Technologies dropped 14% due to weak guidance.
These sharp moves show how individual company news can strongly affect share prices.
Gold, Silver, and Bitcoin
Investors also turned to safe-haven assets. Gold futures jumped 2.5% to around $5,125 an ounce, while silver surged 9%.
Bitcoin was trading near $67,800 in the afternoon, slightly below its earlier high. The U.S. dollar index slipped 0.2%.
The rise in gold and silver reflects concerns about inflation and possible geopolitical risks.
What Comes Next?
The Supreme Court ruling has reduced uncertainty around tariffs, at least for now. Investors appear hopeful that fewer trade barriers could support economic stability.
However, several big questions remain:
- Will inflation stay elevated?
- Will the Federal Reserve adjust interest rates soon?
- Could rising tensions with Iran push oil prices even higher?
These factors will likely keep markets volatile in the weeks ahead.
For now, though, Wall Street has ended the week on a positive note. The Nasdaq breaking its five-week losing streak has boosted confidence, especially among tech investors.
As this story continues to develop, it remains firmly in the Latest News cycle and will likely stay in upcoming Daily news highlights. Between court rulings, inflation data, oil prices, and global tensions, the financial markets are entering a new and uncertain phase.
Investors will be watching closely to see whether this rally can continue—or if new economic challenges lie ahead.
