Wall Street shrugs at widely expected Supreme Court tariff ruling |
Wall Street shrugs at widely expected Supreme Court tariff ruling
Wall Street is keeping calm Friday after the Supreme Court struck down President Donald Trump’s sweeping tariffs, which had triggered panic in financial markets when announced last year, and stocks are drifting in mixed trading.
The S&P 500 was 0.1% higher in midday trading. It had been flipping between small gains and losses before the court’s ruling, following discouraging reports showing slowing growth for the U.S. economy and faster inflation.
The Dow Jones Industrial Average was down 125 points, or 0.3%, as of 12:30 p.m. Eastern time, and the Nasdaq composite was 0.3% higher.
Many on Wall Street were likely expecting such a ruling from the Supreme Court, according to Brian Jacobsen, chief economic strategist at Annex Wealth Management. That likely led to the relatively muted reactions across financial markets, and trading remained tentative as investors tried to suss out the long-term effects.
Treasury yields edged only a bit higher in the bond market, for example. If investors thought the tariff ruling would improve inflation significantly, it could have sent yields lower. On the other hand, if investors were worried about the U.S. government’s debt rising faster in the future because of the loss of revenue from tariffs, long-term yields could have jumped. For now, at........