US stocks rose on Friday with the S&P 500 gaining 0.7% and the Nasdaq rose 0.9% after the Supreme Court struck down President Trump’s reciprocal tariffs. The Dow added 0.5%, recovering from early losses despite a weak 1.4% GDP print weighed down by the government shutdown. While the court ruled the administration lacked authority under IEEPA to impose sweeping duties, Trump immediately countered by announcing a new 10% global tariff via executive order. Amazon and Home Depot jumped 2.6% and 1% as investors weighed potential refunds of $175 billion against the threat of these new levies.Tech strength helped the Nasdaq snap a five-week losing streak even as core PCE inflation held at a sticky 3%, keeping the Fed on guard with Alphabet leading the way after adding 3.7%. Traders now face a new tug-of-war as the removal of original tariff uncertainty is met by fresh protectionist measures, with the White House vowing a stronger direction.
Frankfurt's DAX 40 extended early gains to trade 0.8% higher around 25,230 on Friday, after the US Supreme Court struck down the reciprocal tariffs imposed by Donald Trump. The Court ruled that Trump exceeded his authority when he invoked emergency legislation to impose sweeping tariffs on dozens of trading partners, including the European Union. The decision triggered a rally in automotive stocks such as Porsche (2%), Mercedes-Benz (0.9%), and BMW (0.9%) and VW (0.4%), which have been particularly affected by US tariffs. Banks also advanced solidly, with Deutsche Bank and Commerzbank rising 1.7% and 1.2%, respectively. Meanwhile, traders assessed global economic data and the ongoing earnings season, while also keeping an eye on geopolitics. On the data front, a flash PMI survey revealed that German private sector activity performed better than expected in February, accelerating to a four-month peak. For the week, the index is set to rise about 1.3%.
