{"id":58853,"date":"2026-02-20T11:38:19","date_gmt":"2026-02-20T15:38:19","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/scotus-strikes-down-trumps-global-tariffs-markets-rally-as-rate-cut-hopes-shift-to-july\/58853\/"},"modified":"2026-02-20T11:38:19","modified_gmt":"2026-02-20T15:38:19","slug":"scotus-strikes-down-trumps-global-tariffs-markets-rally-as-rate-cut-hopes-shift-to-july","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/scotus-strikes-down-trumps-global-tariffs-markets-rally-as-rate-cut-hopes-shift-to-july\/58853\/","title":{"rendered":"SCOTUS Strikes Down Trump\u2019s Global Tariffs; Markets Rally as Rate Cut Hopes Shift to July"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>The U.S. Supreme Court struck down President Trump\u2019s global tariffs in a landmark 6-3 decision, ruling that the International Emergency Economic Powers Act (IEEPA) does not authorize the executive branch to impose such duties.<\/strong><\/li>\n<li><strong>Major U.S. stock indexes surged on the news, with the <a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/SPY\">SPY<\/a>) rising 0.7% and the Nasdaq 100 (<a href=\"\/stock\/QQQ\">QQQ<\/a>) gaining 0.9% as trade-related uncertainty eased.<\/strong><\/li>\n<li><strong>Interest rate expectations shifted significantly, with traders now pricing in the first Federal Reserve rate cut for July rather than earlier in the year.<\/strong><\/li>\n<li><strong>Economic data for February showed a slowdown in growth, as Manufacturing PMI fell to 51.2 and Michigan Consumer Sentiment missed estimates at 56.6.<\/strong><\/li>\n<li><strong>Atlanta Fed President Raphael Bostic warned that labor supply remains constrained by immigration changes and that businesses are increasingly cautious due to the rise of AI tools.<\/strong><\/li>\n<\/ul>\n<p>The U.S. Supreme Court delivered a major blow to the administration&#39;s trade policy on Friday, ruling that the President lacks the authority under the <strong>International Emergency Economic Powers Act (IEEPA)<\/strong> to levy global tariffs. The <strong>6-3 decision<\/strong> clarifies that the federal law, typically reserved for national emergencies, does not grant the executive branch the power to bypass Congress on trade duties. <em>The ruling is expected to have immediate implications for global supply chains and international trade relations.<\/em><\/p>\n<p>Wall Street reacted with a relief rally following the decision. The <strong>S&amp;P 500 (<a href=\"\/stock\/SPY\">SPY<\/a>)<\/strong> climbed as much as <strong>0.7%<\/strong>, while the <strong>Nasdaq 100 (<a href=\"\/stock\/QQQ\">QQQ<\/a>)<\/strong> recovered from early opening losses to trade up <strong>0.9%<\/strong>. <em>Investors appear to be betting that the removal of broad tariffs will dampen inflationary pressures and reduce costs for multinational corporations.<\/em><\/p>\n<p>In the commodities and fixed-income markets, the reaction was more nuanced. <strong>Spot <a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold<\/a><\/strong> pared its earlier gains, trading up <strong>0.5%<\/strong> at <strong>$5,023.45\/oz<\/strong>, while <strong>Spot Platinum<\/strong> surged <strong>3%<\/strong> to <strong>$2,133.04\/oz<\/strong>. Meanwhile, <strong>short-term interest-rate futures<\/strong> fell as market participants adjusted their outlook for monetary policy. Traders now see the <strong>Federal Reserve<\/strong> waiting until <strong>July<\/strong> to implement its first rate cut, a delay from previous expectations.<\/p>\n<p>Economic data released Friday morning added to the complex market backdrop. The <strong>S&amp;P Global Manufacturing PMI<\/strong> for February came in at <strong>51.2<\/strong>, trailing the <strong>52.4<\/strong> estimate. <strong>Services PMI<\/strong> also missed expectations at <strong>52.3<\/strong>. Furthermore, <strong>Michigan Consumer Sentiment<\/strong> for February landed at <strong>56.6<\/strong>, down from the previous reading of <strong>57.3<\/strong>, suggesting that <em>high prices and economic uncertainty continue to weigh on American households.<\/em><\/p>\n<p><strong>Federal Reserve<\/strong> official <strong>Raphael Bostic<\/strong> provided additional context on the labor market, noting that sectors such as agriculture and hospitality remain exceptionally tight. Bostic stated that <strong>changes in immigration<\/strong> have &quot;dented&quot; the labor supply, contributing to lower monthly job growth. He also observed that employers are becoming more cautious about hiring as they evaluate whether <strong>AI tools<\/strong> will ultimately complement or replace human workers.<\/p>\n<p>Despite the legal setback regarding tariffs, the administration is moving forward with direct diplomacy. A White House official confirmed that <strong>President Trump<\/strong> is scheduled to travel to <strong>China<\/strong> from <strong>March 31 to April 2<\/strong>. <em>This upcoming visit will be closely watched by markets to see if a new trade framework can be established following the Supreme Court&#39;s intervention.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The U.S. Supreme Court struck down President Trump\u2019s global tariffs in a landmark 6-3 decision, ruling that the 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