Markets rally as Supreme Court strikes down tariffs; S&P 500 gains 0.7%, retail stocks surge, businesses call ruling 'tremendous victory'

Financial markets rallied after the Supreme Court struck down Trump's IEEPA tariffs, with the S&P 500 gaining 0.69% to close at 6,909.51, the Nasdaq Composite rising 0.9% to 22,886.07, and the Dow Jones adding 230.81 points (0.47%) to 49,625.97. The Dow recovered from a 200-point loss earlier in the session on disappointing economic data. Retail and apparel stocks surged, with shares of Wayfair, Amazon, eBay, Etsy, Nike, and Target all climbing significantly. The 'We Pay the Tariffs' coalition, a group of small businesses that had fought the tariffs, called the decision a 'tremendous victory.' The Tax Foundation estimated the IEEPA tariffs had raised more than $160 billion and would have raised $1.4 trillion from 2026 through 2035. The ruling dropped the average U.S. tariff rate on all imports from approximately 17% to 7%. Hundreds of companies--including affiliates of Costco, Toyota, Goodyear, Columbia Sportswear, Barnes & Noble, Logitech, Marathon Petroleum, Revlon, Peloton, Crocs, Xerox, and Yeti--had filed suit seeking refunds totaling an estimated $170 billion. However, gains were tempered later in the day after Trump announced he had signed a new 10% global tariff under Section 122 of the Trade Act of 1974.

"A tremendous victory." — We Pay the Tariffs business coalition reacting to Supreme Court ruling striking down IEEPA tariffs