US stocks rally after Supreme Court strikes down Trump tariffs, despite weak GDP data; Dow up 201 points

US President Donald Trump

• US Supreme Court strikes down Trump's broad tariff policy
• Dow, S&P 500, Nasdaq rise after tariff ruling
• GDP growth slows, but markets rally on trade relief

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Wall Street climbed Friday after the US Supreme Court struck down President Donald Trump’s sweeping tariff policy, handing markets a legal jolt that outweighed fresh signs of slowing growth and persistent inflation.

The Dow Jones Industrial Average rose 201 points, or 0.4 percent. The S&P 500 gained 0.4 percent, while the Nasdaq Composite advanced 0.5 percent, supported by a 2 percent jump in Alphabet shares.

The major averages had slipped earlier in the session before recovering sharply after the Supreme Court ruled that the law underpinning the import duties “does not authorise the President to impose tariffs.”

The decision effectively dismantled the administration’s broad tariff framework, easing concerns over trade friction and input costs for companies. Traders appeared to interpret the verdict as a potential relief valve for corporate margins and global supply chains.

By the end of the week, the Dow was heading for a marginal gain of 0.1 percent. The S&P 500 was up 0.7 percent for the week, while the tech-heavy Nasdaq was set to snap a five-week losing streak, rising more than 1 percent.

The market’s advance came despite softer-than-expected economic data.

Gross domestic product grew 1.4 percent in the fourth quarter, well below the 2.5 percent increase economists polled by Dow Jones had forecast. The previous quarter’s 4.4 percent expansion had far exceeded estimates, highlighting a sharp slowdown into year-end.

The Commerce Department attributed much of the drag to the record-breaking government shutdown, which lasted through the first half of the fourth quarter and shaved roughly 1 percentage point off economic growth.

At the same time, the personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, showed inflation holding steady in December.