Kyle Morel, NorthJersey.com
1 min read
The stock market saw a slight uptick Feb. 20 in the wake of the Supreme Court’s ruling against President Donald Trump’s sweeping tariffs.
The broad market index was up 0.4% as of 1:30 p.m., while the Nasdaq Composite rose 0.6%, according to CNBC. The Dow Jones Industrial Average traded around the flatline after losing 200 points earlier in the session.
The increases came after the Supreme Court ruled 6-3 against Trump implementing the tariffs as a major part of the administration’s economic policy. Chief Justice John Roberts wrote that the president “must identify clear congressional authorization” to exercise his power to unilaterally impose the taxes.
The full financial ramifications of the ruling are still unclear. The U.S. government may have to pay back up to $200 billion to domestic and foreign companies impacted by the tariffs, which could increase stock prices of automakers and imported consumer goods.
“The big question for everyone is what exactly happens to refunds and whether this means the government has to refund the tariff revenue and how quickly that happens,” said Gennadiy Goldberg, head of U.S. rates strategy at TD Securities in New York. “And the key source of uncertainty is what the administration does in response.”
A significant repayment from the U.S. Treasury would increase the national deficit and possibly weaken credit standards, said Phil Blancato, chief market strategist at Osaic in New Jersey.
This article originally appeared on NorthJersey.com: Why is the stock market up? Supreme Court rules on tariffs
