Global capital markets rally after Trump tariffs ruled unlawful

[The Financial News] Global capital markets are cheering with a broad rally after the Supreme Court of the United States (U.S. Supreme Court) ruled Donald Trump’s tariff hikes unlawful.
Stock markets in the United States and Europe advanced across the board, and cryptocurrencies also staged a strong rally.
Western stock markets moved higher in unison. On the 20th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (DJIA) rose 0.47%, the S&P 500 Index gained 0.69%, and the Nasdaq Stock Market (NASDAQ) climbed 0.90%.
European stock markets also advanced, with Germany’s DAX index up 0.87%, Britain’s Financial Times Stock Exchange (FTSE) up 0.56%, and France’s CAC 40 up 1.39%. The STOXX Europe 600 Index, a pan-European benchmark, added 0.84% at the close.
U.S. stocks had opened lower that day. The Personal Consumption Expenditures (PCE) Price Index, the inflation gauge most closely watched by the Federal Reserve System (the Fed), came in hotter than expected, and fourth-quarter gross domestic product (GDP) growth was shown to have slowed sharply.
However, around 10 a.m., when the U.S. Supreme Court handed down its final ruling that Trump’s tariffs were unlawful, the major indexes abruptly reversed course and turned higher.
Cryptocurrencies likewise are in the midst of a broad rally.
As of 8:30 a.m. on the 21st, on global price-tracking site CoinMarketCap, Bitcoin was up 1.54% from 24 hours earlier at $68,001, regaining the $68,000 level. It had previously climbed as high as $68,269. Ethereum, the second-largest cryptocurrency by market capitalization, was trading at $1,968, up 1.02%.
Ripple (XRP), the fourth-largest by market cap, was up 1.64% at $1.42, while BNB, ranked fifth, was up 3.22% at $626.
On this day, the U.S. Supreme Court found that Trump had exceeded executive authority by invoking the International Emergency Economic Powers Act (IEEPA), enacted in 1977, as the legal basis for imposing the tariffs. The justices ruled 6–3. Under U.S. law, the power to levy tariffs rests with Congress, not the executive branch.
In response, Donald Trump immediately pushed back, calling the decision "very disappointing" and declaring that, under Section 122 of the Trade Act of 1974, a global tariff regime would be introduced and a 10% global tariff would be imposed on the entire world.
However, the alternative measures available to Trump are expected to be narrower in scope and slower to implement.
On expectations of lower tariffs, trade, apparel, transportation, luxury goods, and retail stocks all rallied across U.S. and European stock markets.
With Western stock markets surging in tandem, Asian stock markets set to open on the 23rd are also expected to rally. In particular, with the KOSPI having broken through the 5,800 level, a move above 6,000 now appears within reach.



june@fnnews.com Lee Seok-woo Reporter