All risky assets rebounded on this tariff news, expert says

Core Viewpoint - The recent Supreme Court ruling has led to a mixed reaction in the markets, with tariffs remaining largely unchanged and the overall economic outlook showing resilience despite ongoing trade tensions [5][14]. Group 1: Tariff Implications - Treasury Secretary Scott Bessett confirmed that existing tariffs will remain in place, utilizing sections 122, 232, and 301 of the Trade Act of 1974 [2][5]. - The market response to the Supreme Court ruling was positive, with equity markets and risky assets rebounding, indicating that tariffs have been largely accepted by the market [5][7]. - The expected refunds related to AIPA tariffs could amount to as much as $175 billion, with over a thousand companies currently suing the federal government for these refunds [11]. Group 2: Market Reactions - The bond market showed minimal reaction to the ruling, with the 10-year note yield remaining around 4.1%, suggesting that the ruling did not significantly alter the macroeconomic landscape [12][14]. - The overall stability in the bond market and the US dollar, alongside a rise in risky assets, indicates that the market perceives no net change in tariff policies [14][15]. - Companies in the equity market are expected to continue strong capital expenditures, with major firms projected to spend nearly $700 billion this year [7].