SCOTUS Strikes Down Trump's Tariffs, Volatility Hits Markets

• U.S. Supreme Court ruled against Trump administration's tariffs under IEEPA.
• Stocks rallied immediately following the tariff decision, with Information Technology, Communication Services, and Consumer Discretionary sectors showing significant gains.
• Economic data included new home sales beating expectations (745k vs 735k consensus) and 4Q 2025 GDP at 1.4% (below 2.8% estimate), influenced by the trade deficit and government shutdown.

The U.S. Supreme Court struck down tariffs imposed by the Trump administration under the IEEPA, leading to an immediate rally in financial markets. While new home sales and consumer sentiment showed positive signs, 4Q 2025 GDP missed estimates, partly due to the trade deficit and government shutdown. The market's reaction to the tariff ruling was surprisingly positive, indicating relief over potential trade barrier removal.