Traders work at the opening bell of the New York Stock Exchange (NYSE) on February 20, 2026 in New York.
Timothy A. Clary | AFP | Getty Images
Stocks rose on Friday after the Supreme Court ruled against President Donald Trump’s tariffs, as stocks of retailers and other companies hit hard last year by rising import and manufacturing costs as a result of the tariffs rose.
of Dow Jones Industrial Average The stock rose 170.51 points, or 0.3%, recovering from a 200-point drop in early trading following disappointing economic data. of S&P500 Although it rose by 0.3%, Nasdaq Composite It rose by 0.5%.
The Supreme Court struck down much of President Trump’s far-reaching tariff policy under the International Emergency Economic Powers Act, ruling in a majority decision that the law “does not authorize the President to impose tariffs.” The ruling does not address whether customs duties already paid must be returned.
Following the ruling, the stock prices of apparel makers such as Nike and Decker’s Outdoors each rose 2%. Retailers like Home Depot and Five Below also saw price increases. Caterpillar stock reversed earlier losses.
Traders had expressed pessimism about U.S. economic growth earlier in the day after gross domestic product (GDP) rose 1.4% in the fourth quarter. This was well below the 2.5% rise expected by economists compiled by Dow Jones. The 4.4% growth in the third quarter was significantly higher than expected.
The Commerce Department said the record government shutdown was the main cause. The suspension, which lasted into the first half of the fourth quarter, reduced economic growth by about 1 percentage point, the ministry estimated.
In addition to GDP data, the Federal Reserve’s recommended inflation measure, the Personal Consumption Expenditures Price Index report, showed that inflation was stable in December. Core PCE, which excludes volatile food and energy prices, was 3%, in line with expectations but still well above the Fed’s 2% target.
Alternative asset manager stocks continued their tough week on Friday, weighing on broader market sentiment, amid growing concerns about losses related to private credit, particularly loans in the troubled software sector. shares of blue owl capitalmanaged a redemption from one of its private credit funds this week, which fell another 1% on Friday. shares of black stone and ares managementand other major players in private credit also fell 1% each.
Friday’s move puts the Dow Jones Industrial Average on track for a 0.1% gain over the period. The S&P 500 is on pace for modest gains this week, up 0.7%. The tech-heavy Nasdaq is up more than 1%, on track to end a five-week losing streak.
—CNBC’s Jeff Cox contributed reporting.
