SCOTUS Tariff Ruling Ignites Relief Rally as Markets Weigh Soft GDP and Sticky Inflation

Core Viewpoint - U.S. equity markets are experiencing a volatile but upward trend, primarily driven by a Supreme Court ruling that struck down President Trump's global tariffs, leading to a relief rally in trade-sensitive sectors [1] Market Performance and Sector Trends - Major market indexes are showing gains, with the S&P 500 up 0.72% to 6,911 points, the Nasdaq Composite up 0.86% near 22,700, and the Dow Jones Industrial Average adding approximately 112 points, or 0.23%, around 49,500 [2] - The Technology Select Sector SPDR (XLK) and Energy Select Sector SPDR (XLE) are standout performers, rising 1.0% and 1.9% respectively, while the Retail sector saw a boost with the State Street SPDR S&P Retail ETF (XRT) surging nearly 2% [3] Economic Data - Q4 GDP grew at an annualized rate of 1.4%, significantly below the consensus estimate of 2.5%, attributed to a government shutdown and cooling domestic employment [4] - The core Personal Consumption Expenditures (PCE) price index remains steady at 3% annually, presenting a challenge for the Federal Reserve amid slower growth and persistent inflation [5] Corporate News and Stock Movements - Alphabet (GOOGL) shares jumped nearly 4% due to eased tariff-related inflationary fears, while Amazon (AMZN) rose 2% on expectations of lower logistics costs [6] - Nvidia (NVDA) is preparing for a significant earnings release, trading slightly lower as it finalizes a $30 billion investment in OpenAI, while Rackspace (RXT) surged over 50% due to a new AI partnership [7] - Akamai Technologies (AKAM) fell 9.3% after a weaker-than-expected earnings outlook, and Newmont (NEM) dropped 4% following lower production guidance and a legal dispute with Barrick Gold (GOLD) [8] Upcoming Market Events - The market will focus on Nvidia's fiscal fourth-quarter earnings report expected on February 25, with analysts predicting a 71% rise in earnings per share [9] - Investors will also monitor consumer confidence data and home price indices for insights into U.S. consumer health, alongside geopolitical tensions in the Middle East affecting market volatility [10]