This article first appeared on GuruFocus.
Stocks and the dollar moved lower as investors recalibrated expectations around US trade policy following a Supreme Court ruling that struck down President Donald Trump’s emergency levies. Futures tied to the S&P 500 (SPY) fell 0.6% as markets assessed the potential implications of a newly announced 15% global tariff, a shift that may not immediately resolve uncertainty. Currency traders rotated into traditional havens including the Swiss franc and the yen, gold advanced toward its highest level this month, and Bitcoin briefly slipped below $65,000, reflecting a more cautious tone across risk assets.
The ruling lands at a delicate juncture. Markets were already contending with concerns surrounding artificial intelligence disruption and rising US-Iran tensions, and the renewed focus on trade policy could add another layer of volatility. Nasdaq 100 (NASDAQ:QQQ) contracts declined 0.7%, while European equities dropped 0.3%, led by weakness in the technology sector. Treasuries were little changed. Investors are now turning their attention to President Trump’s State of the Union address on Tuesday for signals on trade and broader policy priorities ahead of this year’s mid-term elections, as well as to Nvidia Corp.’s earnings on Wednesday, which could further influence sentiment around AI-linked equities.
In Asia, technology shares advanced amid expectations that the court’s decision might be particularly supportive for China and India, two economies that had been heavily affected by earlier US tariff measures. Still, strategists suggested the ruling could increase near-term uncertainty rather than provide clarity. Some market observers warned that the re-emergence of global trade risk may weigh on US assets, with the dollar’s decline potentially extending and the S&P 500’s relative underperformance becoming more pronounced as investors incorporate the evolving tariff framework into their outlook.