US stocks rose on Friday after the Supreme Court ruled that President Trump's most sweeping "Liberation Day" tariffs are unlawful, saying he lacked the authority to impose them using emergency powers.

The S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) both moved up 0.2%, coming off the end of a three-day winning streak on Thursday. The tech-exposed Nasdaq Composite (^IXIC) rose 0.4%.

Stocks reversed course on the heels of the decision, having slid at the open as investors digested key economic readings and kept an eye out for US-Iran tensions and private credit jitters.

In its decision on Friday morning, the Supreme Court ruled that Trump overstepped his powers in invoking the International Emergency Powers Act to impose tariffs on several trading partners in April.

Get the latest reaction and fallout to the SCOTUS ruling in our tariff blog here

Wall Street learned earlier Friday that US GDP grew more slowly than expected in the fourth quarter, coming in at 1.4%, far behind forecasts. Meanwhile, the "core" personal expenditures index — Fed rate-setters' preferred gauge of inflation — rose more than expected in December, on a monthly and annual basis.

The watch is on for signs of stress in the private credit sector, after Blue Owl's (OBDC, OWL) halt to withdrawals. Fears are the move is a "canary in the coal mine" financial crisis-style moment amid concerns about the sector's holdings of software stocks threatened by AI. Blue Owl shares continued to fall in premarket after it sold $1.4 billion in private loans, including to the lender's own insurer.

Refunds on President Trump's widespread tariff scheme could cost the US as much as $175 billion, according to new estimates from Penn-Wharton Budget Model economists.

Reuters first reported the new estimate.

On Friday morning, the Supreme Court on Friday ruled in a 6-3 vote that the International Emergency Economic Powers Act (IEEPA) does not give the president the authority to levy tariffs, dealing a blow to the Trump Administration's signature economic policy and setting up a bevy of questions over what a reversal of the foreign policy will look like.

Now that the president's tariff scheme has been struck down, importers are likely to begin scrambling to claim refunds from US Customs and Border Protection on import duties paid throughout the year.

The White House has previously said that if the Supreme Court were to strike down Trump's IEEPA tariffs, the Administration would replicate them through other policies that could mirror their effects.

However, the replacement measures the White House will have at its disposal could be more limited in scope and slower to enact, according to Bloomberg.

The Supreme Court on Friday ruled in a 6-3 decision that President Trump does not have the authority to levy a broad swath of tariffs under the International Emergency Economic Powers Act (IEEPA).

But the initial reaction from some on Wall Street is that this legal defeat is unlikely to mark the end of the administration's push to use tariffs to achieve its economic goals, primarily that of lowering our trade deficit and onshoring US manufacturing.

\\"I don't think we have heard the last from Trump and tariffs,\\" wrote Neil Dutta, head of economics at Renaissance Macro. There is a vast legal architecture that Trump can draw from to prosecute this... The issue is if he does not dial the tariff threat back on, he basically looks like a lame duck. The issue is more political than economic, at least right now. If Trump turns the trade knob back on, we get more uncertainty. If he decides to give in, then he is basically cooked politically.\\"

In a separate note, Chris Rupkey, chief economist at FWDBONDS, wrote that, \\"The headline shock for markets, even if largely expected since the November 2025 Supreme Court arguments, is likely to fade in the trading days to follow.\\"

\\"It is important to realize that the import tariffs are only bringing in about $250 billion a year more than they did in the Biden administration,\\" Rupkey added. \\"A $250 billion loss of revenue is not make or break for getting the country’s $7 trillion in Federal government spending under control, nor is it in any way fixing the fiscal year 2025 $1.7 trillion Federal budget deficit.\\"

The Supreme Court on Friday ruled in a 6-3 vote that the International Emergency Economic Powers Act (IEEPA) does not give the president the authority to levy tariffs, dealing a blow to the Trump Administration's signature economic policy.

Chief Justice John Roberts and Justices Sonia Sotomayor, Elena Kagan, Neil Gorsuch, Amy Coney Barrett, and Ketanji Brown Jackson voted in the majority.

Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh formed the dissent.

Throughout his second term, Trump has leaned on the IEEPA to grant him broad authority to set tariff policy as he saw fit, beginning with the April 2025 \\"Liberation Day\\" announcement of tariffs on a slew of allies and other countries. That announcement sent the markets careening downward before a recovery later in the year.

It remains to be seen exactly how the Supreme Court's decision will impact the tariffs the president has already imposed. The market's initial reaction to Friday's ruling was muted.

The US dollar (DX-Y.NYB) is at its highest level in nearly a month following a rally over the past two weeks, a typically bearish signal for stocks. Even so, readings on the US economy's direction give investors a broad range of opportunities in US equities, UBS strategists wrote in a client note Friday morning.

Given the split in perspectives over where to take rates in the Fed's January meeting — the minutes were released on Wednesday — the Fed is likely to maintain its position and hold rates steady, said the UBS strategists, led by global wealth management CIO Mark Haefele.

\\"While the minutes did not suggest officials were contemplating the possibility of rate increases, they made clear policymakers were in no rush to cut rates as 'the vast majority of participants judged that downside risks to employment had moderated in recent months while the risk of more persistent inflation remained,'\\" the UBS strategists wrote.

Yet, despite the short-term hold on the horizon, the US central bank likely has \\"further to go its easing cycle, and this remains a key pillar in our positive outlook on US equities overall,\\" the strategists wrote.

\\"With the easing cycle still intact, and the US economy showing resilience amid an improvement in manufacturing activity and industrial output, we expect healthy and broadening profit growth across sectors,\\" the strategists wrote, noting \\"attractive opportunities\\" in financials, health care, utilities, consumer discretionary, and industrials.

The US stock market fell into the red on Friday as investors digested economic data that showed the US economy's growth slowed down in the fourth quarter, while so-called \\"core\\" PCE, the Fed's favored inflation gauge, heated up in December. The market is also watching tensions in the Middle East, nerves in the private credit market, and a potential tariff decision from the US Supreme Court.

The S&P 500 (^GSPC) fell by 0.2%, while the Dow Jones Industrial Average (^DJI) slid into the red by 0.4% after a the end of a three-day winning streak on Thursday. The Nasdaq Composite (^IXIC) turned down by 0.5% before paring losses to a slide of 0.2%.

Prices rose by 0.4% in December over the previous month, according to Personal Consumption Expenditures index data, while the so-called \\"core\\" PCE, which excludes the more volatile food and energy categories, also rose 0.4% on the month, a step up from the previous month's 0.2% growth.

New data from the Bureau of Economic Analysis on Friday showed the economy grew at an annualized rate of 1.4% in the final three months of 2025. Economists had expected GDP to grow at an annualized rate of 2.9% in the fourth quarter.

I still think the strong earnings report out of Walmart (WMT) yesterday is a better proxy on the economy right now than a government GDP report.

I got no indication (nor saw any in the earnings report) in my chat below with Walmart CFO John David Rainey the business has slowed at all:

Prices rose by 0.4% in December over the previous month, marking an increase from the previous month, according to Personal Consumption Expenditures index data released Friday by the Bureau of Economic Analysis.

The growth exceeded economists' expectations of 0.3%, according to Bloomberg's consensus estimates.

So-called \\"core\\" PCE, which excludes the more volatile food and energy categories, also rose 0.4% on the month, a step up from the previous month's 0.2% growth. Economists had predicted that the Federal Reserve's preferred inflation measure would rise by 0.3%.

On an annual basis, the headline and core PCE price indexes rose 2.9% and 3.0%, respectively, in December from the previous year, also slightly above economist estimates for the two gauges.

Meanwhile, personal income remained consistent, rising 0.3% in December on a monthly basis, in line with the previous month's growth and matching economist expectations.

Personal spending increased 0.4% from last month, coming in above expectations of 0.3% but falling below the previous month's growth of 0.5%.

The US economy grew at a slower pace than expected in the fourth quarter of 2025.

New data from the Bureau of Economic Analysis on Friday showed the economy grew at an annualized rate of 1.4% in the final three months of 2025. Economists had expected GDP to grow at an annualized rate of 2.9% in the fourth quarter.

In a post on Truth Social ahead of the report, President Trump said the government shutdown that lasted 43 days back in the fall cost the US economy \\"at least two points in GDP.\\" The president also again called for lower interest rates.

In its release, the BEA said, \\"Compared to the third quarter, the deceleration in real GDP in the fourth quarter reflected downturns in government spending and exports and a deceleration in consumer spending that were partly offset by an acceleration in investment.\\"

Underlying spending trends, however, remained solid, with real final sales to private domestic purchasers — the sum of consumer spending and gross private fixed investment — increasing 2.4 percent in the fourth quarter, compared with an increase of 2.9 percent in the third quarter.

Friday's report had been set for release on Jan. 29, but data collection was delayed by the shutdown that covered all of October and parts of November.

Chemours Co. (CC) stock slumped 9% before the bell on Friday after reporting a loss of $47 million in its fourth quarter earnings.

The AP reports:

The Wilmington, Delaware-based company said it had a loss of 31 cents per share. Earnings, adjusted for non-recurring costs, came to 5 cents per share.

The results exceeded Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was breakeven on a per-share basis.

The chemical company posted revenue of $1.33 billion in the period, matching Street forecasts.

Read more here.

Grail (GRAL) stock sank over 40% before the bell on Friday after the healthcare company's cancer trial results failed to impress investors.

Barron's reports:

The biotech company said its multi-cancer screening test Galleri did not lead to a “statistically significant reduction” in stage 3 and 4 cancer in a U.K. National Health Service (NHS) trial of more than 142,000 people between the ages of 50 and 77.

Galleri is a blood test, developed by Grail, to screen for a number of cancers before they become symptomatic.

However, Grail said there was a “favorable trend” toward fewer stage 3 and 4 cancers in a group of 12 deadly cancers, as well as an increase in diagnoses of early stage cancer types that are typically detected later.

Read more here.

Chemours (CC) fell 9% during premarket trading on Friday after reporting a loss in its fourth quarter earnings and a dip in revenue. This was driven by a drop in its titanium technologies and advanced performance materials businesses.

Live Nation (LYV) stock rose more than 3% before the bell on Friday after the ticket provider posted an 11% increase in fourth-quarter revenue to $6.31 billion, driven by a 12% gain in concert sales.

AppLovin's (APP) stock jumped 5% during premarket hours on Friday after the release of its fourth quarter earnings and the company's plan to launch a social networking platform.

Beyond the splashy AI chip news, there's something else worth a deeper look in the stepped-up data center partnership agreed by Nvidia (NVDA) and Meta (META) this week.

The agreement will also see Meta roll out Nvidia Grace CPU-only servers in its data centers, the first large-scale deployment of the chips. It's part of Nvidia's CPU play — and that could ring alarm bells for Intel (INTC) and AMD (AMD).

Yahoo Finance's Daniel Howley writes:

Grace is the processor that Nvidia pairs with two Blackwell or two Blackwell Ultra GPUs to form its GB200 and GB300 AI superchips.

The Grace-only servers come at a time when Nvidia is angling to capitalize on the growing demand for traditional CPUs as hyperscalers increasingly look to the chips to help power some AI inferencing and agentic AI applications.

“Nvidia has been on the path of providing more of the content in the data center for a while,” Gil Luria, managing director and head of technology at D.A. Davidson, told Yahoo Finance.

“The addition of Mellanox [a networking company Nvidia acquired in 2020] put them into the networking category as well. So when they sell into the data center, they're actually selling almost a vast majority of the value. But it makes sense for them to increase that value even further by adding CPU capacity.”

Read more here.

Opendoor's (OPEN) stock jumped 14% in premarket trading on Friday after the company reported that home purchases rose 46% quarter over quarter. Revenue reached $736 million, surpassing Wall Street estimates of $576.94 million.

The digital real estate company posted a fourth quarter loss of $1.26 per share, missing analysts' estimates.

Investing.com reports:

Chief Executive Officer Kaz Nejatian emphasized that the current results validate the company's long-term roadmap toward sustainable profitability. He noted that structural improvements in pricing and inventory turns are now beginning to materialize in the financial data.

“These results reflect structural improvements in how we operate with more accurate pricing, faster inventory turns, and disciplined selection,” Nejatian said in the earnings release. “The evidence of progress is clear.”

Looking ahead, management is prioritizing a return to positive adjusted net income by the end of 2026 on a rolling twelve-month basis. For the first quarter of 2026, the company anticipates an adjusted EBITDA loss between $30 million and $35 million.

“We're focused on making the right long-term decisions to rebuild Opendoor rather than managing to short-term guidance,” the company stated regarding its forward-looking guideposts. Revenue is expected to decline by approximately 10% in the upcoming quarter.

Read more here. 

Reuters reports:

Nvidia (NVDA) is close to finalizing a $30 billion investment ‌into OpenAI that will replace ‌the long-term $100 billion commitment agreed upon by the ​companies last year, the Financial Times reported on Thursday, citing sources.

The deal, which would be part of ‌a new ⁠funding round for the artificial intelligence start-up, could be ⁠finalized as early as this weekend, the report added.

Reuters could ​not immediately ​verify the ​report. Nvidia declined ‌to comment.

ChatGPT maker OpenAI is looking to raise up to $100 billion in its latest funding round, valuing it at about $830 billion, Reuters ‌reported in January.

Read more here.