US, European stocks rise after supreme court strikes down Trump tariffs

DCM Editorial Summary: This story has been independently rewritten and summarised for DCM readers to highlight key developments relevant to the region. Original reporting by Irish Times, click this post to read the original article.

Stocks advanced in Europe and the United States on Friday and US treasury yields rose as investors absorbed a ruling by the US supreme ‌court striking down President Donald Trump’s tariffs, while also parsing a weak GDP report and higher-than-expected inflation data.

All three big US stock indices moved higher immediately after the Supreme Court’s decision. The S&P 500 and the Nasdaq ​are on track to notch weekly gains, while the blue-chip Dow is currently flat versus last Friday’s close.

Europe’s Stoxx 600 index extended gains following the ruling while gold prices came off the day’s highs in the immediate aftermath.

“There’s a belief that ​tariffs have actually hurt the economy, and maybe we see that in these weak GDP numbers that we got earlier today,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.

Dublin

Food giant Glanbia fell 1 per cent to €16.50 in advance of a trading update next week. The Kilkenny-headquartered group recently announced new financial targets for the next three years, saying it expected adjusted earnings per share growth of between 7 per cent and 11 per cent between 2026 and 2028. Rival food group Kerry was also weaker, down 1.5 per cent at €72.60.

Bank of Ireland was up almost 3 per cent in the wake of a new pay deal with unions. The bank agreed a proposed deal that recommends salary increases for staff covered by collective pay agreements of 4 per cent. Ryanair was relatively steady – up 0.5 per cent – at €26.75.

London

Britain’s stock ‌indices climbed on Friday, finishing the week higher, after the US court ruling while expectations of a ​Bank of England rate cut in March and easing concerns over AI disruption also lifted sentiment.

The blue-chip FTSE 100 closed up 0.5 per cent after hitting a record high in intraday trading at 10,745.76 points.

On the earnings front, Aston Martin fell 1.4 per cent after ⁠the luxury carmaker warned of a bigger ​annual loss and said it planned to sell the right ​to use its name on the Aston Martin F1 Team to bolster its finances after a challenging year.

The ‌broader auto sector lost 1.4 per cent and was ​among the few sectors in the red.

Anglo American posted a $3.7 billion loss following another writedown in its diamonds ⁠business. However, its shares added 1 per cent, tracking higher base ⁠and precious metal ​prices.

Europe

European stocks jumped on the heels of the US supreme court ruling, having already advanced on an ⁠improving corporate earnings outlook, while geopolitical turmoil remained on investors’ radar. The pan-European Stoxx 600 index advanced 0.78 per cent, while Europe’s broad FTSEurofirst 300 index rose 19.55 points, or 0.78 per cent.

Luxury brand Moncler ​jumped 11.3 per cent after reporting a 7 per cent rise in revenue in the fourth quarter, helped by solid growth in Asia and the Americas.

Among others, life sciences firm Siegfried slid 6.7 per cent after its annual ​revenue slightly missed analyst expectations. Italian insurer Unipol gained 6 per cent after reporting a 36.8 per cent ​rise in its full-year profit.

New York

US stocks edged higher on Friday after the supreme court ruling in the US. While ​stock markets have recovered from the sell-off induced by last year’s tariff announcement, companies as well as consumers are still grappling with the fallout from the levies.

Shares of US ⁠toymakers Hasbro and Mattel, online furniture retailer Wayfair, Pottery Barn-owner Williams-Sonoma and luxury furniture retailer RH – some of the companies that ‌were ‌hardest hit ​by the tariffs – climbed after the verdict.

Shares of legacy automaker General Motors recouped some losses and were down 0.1 per cent, while Ford Motor was last up 1 per cent.

“Markets are responding with a greater risk appetite for equities ⁠because we finally got something resolved,” said Todd Schoenberger, chief ​investment officer at CrossCheck Management in Washington DC.

“The only question now ​becomes a rebate issue, so that could have a negative impact on the economy.”

Thousands of companies around the world have filed lawsuits challenging Trump’s ‌sweeping tariffs and sought refunds on the duties they have ​paid. There is a risk that more than $175 billion in US tariffs collected will need to be refunded, according to Penn-Wharton Budget Model ⁠economists. – Additional reporting by Reuters