NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As Trump Plans To Impose 10% Global Tariff

SP500 Attempts To Settle Above The 6900 Level

SP500 moved higher as traders reacted to U.S. Supreme Court decision on Trump’s tariffs and focused on Trump’s comments after the decision.

U.S. Supreme Court ruled that Trump exceeded his authority when imposing tariffs, which means that tariffs were illegal. A lower court should decide whether importers should get refunds, which could total as much as $170 billion.

President Trump has already reacted to Court’s decision. He said that he would impose a 10% global tariff under Section 122, above the tariffs already being charged.

Trump added that tariffs under Section 232 and Section 301 will remain in place. He noted that alternatives would be used to replace the tariffs that were removed by the Court’s decision.

Importantly, Trump said that discussion of potential tariff refunds in courts would last years. Thus, it’s not an important catalyst for markets right now.

Surely, the tariff issue was the key driver for SP500 and other major indices today. However, traders also had a chance to take a look at important economic data.

GDP Growth Rate was +1.4% in the fourth quarter, compared to analyst forecast of +3%. The surprising weakness of GDP Growth Rate may force the Fed to be dovish.

The final reading of Michigan Consumer Sentiment report indicated that Consumer Sentiment increased from 56.4 in January to 56.6 in February, compared to analyst forecast of 57.3.

According to the report, year-ahead inflation expectations declined from 4.0% in January to 3.4% in February. Long-run inflation expectations were unchanged at 3.3%.

Manufacturing PMI declined from 52.4 in January to 51.2 in February, compared to analyst forecast of 52.6. Services PMI decreased from 52.7 to 52.3, compared to analyst consensus of 53. Numbers above 50 show expansion.

New Home Sales increased by +15.5% month-over-month in November and then declined by -1.7% in December. Both reports exceeded analyst estimates.

Personal Spending increased by +0.4% month-over-month in December, while Personal Income grew by +0.3%. Both reports met analyst expectations.

Consumer cyclical stocks were among the biggest gainers today as traders reacted to U.S. Supreme Court decision on tariffs.

Energy stocks moved lower as traders reacted to the pullback in the oil markets. Oil prices declined despite Trump’s comments on Iran. U.S. President said that he was thinking about a limited military strike against Iran.

SP500 climbed above the resistance at 6870 – 6880 and is trying to gain additional upside momentum. In case this attempt is successful, SP500 will head towards the next resistance at 6940 – 6950.

NASDAQ Gains Ground, Supported By U.S. Supreme Court Decision On Tariffs

NASDAQ moved higher as the appetite for risk increased after Supreme Court ruled that Trump’s tariffs were illegal.

In case NASDAQ settles above the 50 MA at 24,901, it will head towards the nearest resistance level at 25,200 – 25,250. RSI remains in the moderate territory, so there is plenty of room to gain momentum in the near term.

Dow Jones Rebounds As Traders React To Trump’s Tariff Plans

Dow Jones attempts to settle above the resistance level at 49,500 – 49,600 as traders focus on Trump’s comments.

In case Dow Jones manages to settle above the 49,600 level, it will get to the test of the 50 MA at 49,702. A move above the 50 MA will push Dow Jones towards the next resistance at 50,100 – 50,200.

For a look at all of today’s economic events, check out our economic calendar.