Stocks Rally: Tariffs, GDP & Inflation – Market Update

Supreme Court Strikes Down Most of Trump’s Tariffs

FROM 54 minutes ago

President Donald Trump’s signature economic policy was illegal.

That’s according to the Supreme Court, which ruled Friday against the sweeping tariffs Trump imposed on most U.S. trading partners in 2025 using his emergency powers. In a 6-3 ruling, the high court determined Trump exceeded his authority as president when he imposed the import taxes.

The ruling overturns all of the tariffs Trump imposed under the International Emergency Economic Powers Act (IEEPA) of 1977. That represents about 75% of all the tariffs Trump imposed last yearaccording to an analysis by UBS, including the “reciprocal” tariffs he placed on imports from most countries in the world.

The ruling leaves in place tariffs on specific items such as automobiles and steel, which were imposed under a different authority, section 232 of the Trade Expansion Act of 1962.

“The President enjoys no inherent authority to impose tariffs during peacetime,” the ruling said. “It instead relies exclusively on IEEPA to defend the challenged tariffs.”

The court sided with Learning Resources Inc., which manufactures educational materials, and sued the administration last year arguing that IEEPA does not give Trump the authority to impose tariffs at will.

The ruling once again throws U.S. trade policy into uncertainty. Ahead of the ruling, the Trump administration vowed to re-impose tariffs under different legal justifications if the court ruled against tariffs. The administration would “start the next day” to reestablish tariffs, Trade Representative Jamieson Greer told the New York Times last month.

It was unclear how soon Trump would impose new tariffs, or whether they would be as high as the old ones.

–Diccon Hyatt

Why One Expert Thinks Palantir’s Slumping Stock Is an Opportunity for Investors

FROM 1 hr 30 min ago

Palantir shares have slumped lately. Does that make them a deal?

Shares of Palantir (PLTR) were down about 2% in early Friday trading. That leaves them down about 36% from their November highs amid a broader pullback in software stocks and some worries Palantir’s valuation may have eclipsed its fundamentals. The stock popped earlier this month after turning in Street-beating earningsbut that didn’t stop the slide.

But that pullback may be overdone, analysts at Mizuho suggested in a note to clients, saying now could be a good time to pick up Palantir shares.

Mizuho on Wednesday upgraded Palantir’s stock to “outperform” from a neutral rating, setting a $195 price target that is 44% above Wednesday’s close.

The analysts pointed to strong AI demand trends and growth in the company’s commercial business. Palantir “is in a category of one, delivering total revenue growth, acceleration, and margin expansion at scale that is unlike anything else in software,” they wrote.

Of the eight analysts with current ratings tracked by Visible Alpha, only half consider the stock a “buy,” while half hold neutral ratings. (Michael Burry, meanwhile, has recently come out as a Palantir bear.) But the Street’s mean target is higher than Mizuho’s: The average just above $207 would suggest a return to the stock’s November high.

–Kara Greenberg

U.S. Economy Grew Far Slower Than Expected Last Quarter

FROM 2 hr 25 min ago

Inflation-adjusted gross domestic product grew at an annualized rate of 1.4% in the fourth quarter, down from 4.4% in the third quarter. It was also well below economists’ expectations of a 2.4% increase.

Friday’s figures are an advance estimate that the bureau will revise twice as new data comes in. Final numbers will be released in April.

Before Friday’s release, when economists were still predicting a two percentage point slowdown, President Donald Trump took to social media to blame slower GDP growth on his political opponents.

“The Democrat Shutdown cost the U.S.A. at least two points in GDP,” he wrote.

Economists say the historically long 43-day shutdown in October and November hindered economic growth. Deutsche Bank researchers estimate that had the shutdown not happened, the economy would have grown 70 basis points more in the fourth quarter.

–Taylor Tompkins

Stock Futures Slip Ahead of Key Economic Reports

FROM 2 hr 59 min ago

Futures contracts connected to the Dow Jones Industrial Average were down 0.1% in recent trading.

S&P 500 futures were also off 0.1%.

Nasdaq 100 contracts dipped a similar amount.