US Supreme Court Strikes Down Trump Tariffs: Wall Street Reacts

It wasn’t a complete shock for markets. Yet the Supreme Court’s ruling striking down the cornerstone of President Donald Trump’s economic policy did create ripples across asset classes.

Treasuries and a Bloomberg gauge of the dollar fell, while stocks rallied, after the court struck down Trump’s sweeping global tariffs. The court said Trump exceeded his authority by invoking a federal emergency-powers law to impose his “reciprocal” tariffs across the globe as well as targeted import taxes the administration says address fentanyl trafficking.

One reason why market reactions were somewhat muted: Trading in predictions markets had been leaning toward this outcome ...