US sharemarkets closed higher on Friday after the Supreme Court struck down most of President Donald Trump’s tariff policy under the International Emergency Economic Powers Act, easing concerns about higher import costs and persistent inflation.
The S&P 500 rose 0.69% to 6,909.51, the Nasdaq Composite gained 0.9% to 22,886.07, and the Dow Jones Industrial Average added 230 points, or 0.47%, to 49,625.97. The Dow recovered from an earlier 200-point decline following weaker-than-expected economic data.
For the week, the S&P 500 advanced 1.1%, the Nasdaq climbed 1.5%, snapping a five-week losing streak, and the Dow rose 0.3%.
Shares exposed to global trade rallied, including Amazon, which rose more than 2%, alongside gains in retailers such as Home Depot and Five Below. The ruling was widely anticipated, though uncertainty remains over whether previously collected tariffs will be refunded.
Growth data mixed as inflation holds steady
Economic data earlier in the session painted a softer growth picture. Fourth-quarter US GDP expanded 1.4%, below expectations of 2.5%, with the Commerce Department citing the impact of the government shutdown. Meanwhile, the Federal Reserve’s preferred inflation measure, core PCE, held at 3% in December, remaining above the central bank’s 2% target.
Late Friday, the White House signalled a shift in trade strategy, announcing a new 10% global tariff, raising fresh uncertainty for markets heading into the new week.
Australian market outlook
Australian shares are set for a volatile start on Monday as investors digest the evolving US trade stance. Earlier indications suggested a modest gain of around 0.2%, though sentiment has turned more cautious following the announcement of new tariffs under alternative trade legislation.
Attention turns to a busy final week of reporting season, with Ampol, Lendlease and NIB among companies due to report today. Globally, markets are also looking ahead to Nvidia’s earnings later this week, which may shape sentiment toward technology stocks.
