Supreme Court Blocks Broad Tariffs, Stocks Rise

U.S. stocks closed higher Friday after the Supreme Court ruled that President Donald Trump could not impose sweeping tariffs under the International Emergency Economic Powers Act, a 1977 law the administration had used to justify the measures. The decision, issued by a 6-3 conservative majority, came amid broader economic concerns and prompted a measured rally on Wall Street, with major indexes advancing as investors weighed the ruling's impact on trade and inflation.

The court determined that the act, intended for emergencies like embargoes, did not authorize broad tariffs on imports from multiple countries. The tariffs, announced last year, had initially sparked market turmoil, including sharp drops in stocks tied to international trade. Friday's reaction was more subdued, as many analysts anticipated the outcome. The S&P 500 rose 0.7 percent, or 47.62 points, to close at 6,909.51. The Dow Jones Industrial Average gained 0.5 percent, adding 230.81 points to 49,625.97, while the Nasdaq Composite increased 0.9 percent, up 203.34 points to 22,886.07.

In response, Trump criticized the ruling as "terrible" and vowed to pursue tariffs through alternative legal pathways. Speaking to...