U.S. stock indexes climbed on Friday following a Supreme Court ruling that invalidated most of President Donald Trump’s broad tariff program under the International Emergency Economic Powers Act, a decision the majority said limits the President’s authority to impose tariffs. The move may reduce cost pressures for companies and help temper investor concerns about persistent U.S. inflation.
The S&P 500 rose 0.69% to finish at 6,909.51. The Nasdaq Composite gained 0.9% to close at 22,886.07. The Dow Jones Industrial Average added 230.81 points, or 0.47%, ending the session at 49,625.97 after recovering from an earlier drop of roughly 200 points that followed weaker-than-expected economic data earlier in the day.
The court majority held that the International Emergency Economic Powers Act "does not authorize the President to impose tariffs." President Trump responded by saying he intends to propose a new 10% global tariff.
For the week, the Dow inched up 0.3%, the S&P 500 gained 1.1%, and the Nasdaq snapped a five-week losing streak with a 1.5% advance.
Earnings and economic data in focus
Market participants are entering a week where corporate results and a slate of macroeconomic reports will help set near-term tone. The spotlight will be on artificial intelligence bellwether Nvidia Corp as the company reports earnings.
Nvidia has been a dominant driver of market action; the stock surged more than 1,500% from late 2022 through the end of last year. In 2026 the share price was up about 0.8% as of Thursday. The chip maker carries outsized influence on major benchmarks, representing roughly 7.8% of the S&P 500, meaning its results and guidance are closely watched for their potential index impact.
Beyond Nvidia, investors will examine results from other technology names, including software companies facing questions about how artificial intelligence might reshape their business models. Expected reports from Salesforce and Intuit are likely to receive added scrutiny amid the sector’s transition toward AI. Companies tied to AI infrastructure such as Dell and CoreWeave are also scheduled to report.
Outside technology, the final weeks of fourth-quarter reporting bring results from major retailers Home Depot and Lowe’s, which investors will review for signs of consumer demand and margin trends.
On the economic calendar, market participants will parse readings that include producer prices, consumer confidence, initial jobless claims, and various regional Federal Reserve surveys, all of which could influence expectations for growth, inflation and monetary policy.
What strategists are saying
Several firms shared views on the outlook for U.S. equities.
JPMorgan strategists wrote: "We remain of the view that Growth-Inflation tradeoff will be attractive in 2026, with positive earnings and activity delivery on one side, and well behaved bond yields, inflation, and dovish Fed on the other. The strong equity rally can lead to derisking episodes, when technicals become stretched, and particularly if some adverse geopolitical news comes forth, such as potential Iran escalation or the latest tariffs headlines, but we believe that these will not be long lasting, and should be seen as buying opportunities, for as long as the macro backdrop remains as outlined above."
Evercore ISI commented: "Dislocations are creating opportunities to gain exposure to the AI theme set for structural outperformance as companies continue to invest in efficiency to counter structurally tightening labor markets and rising protectionism. EVR ISI Fundamental analysts highlight their top stocks that are benefitting/will benefit from rising AI adoption and which hold defensible moats from potential disruptors. MSFT, SNOW, PANW, AMZN, BKNG, CHRW, WAY, APO among them."
RBC Capital Markets said: "The latest tariff developments do not have a material impact on our longer-term U.S. equity market outlook, and we remain constructive on U.S. equities in the year ahead."
Market implications
The Supreme Court decision reduced one near-term policy uncertainty that investors had been weighing. Still, the administration’s stated plan to pursue a new global tariff underscores that trade-policy risks remain a variable for corporate cost structures and profit margins.
Meanwhile, concentrated leadership from a handful of large technology names - especially Nvidia - means that earnings outcomes from those firms can disproportionately affect benchmark performance. Technology- and AI-related results will therefore be closely monitored for signs of revenue growth, margin pressure and capital spending trends that could shape sector rotation and index dynamics.
Investors will also watch incoming macro readings for evidence of continued inflationary pressures or labor-market strength that could influence Federal Reserve expectations and bond yields.
Overall, markets enter the coming days with reduced tariff uncertainty from the court ruling but with fresh potential catalysts - earnings from major tech and retail companies, AI infrastructure updates, and a set of economic reports - that could shift sentiment and positioning.