Stock Market News·2026-02-24 06:00Core Viewpoint - The U.S. Supreme Court's ruling against President Trump's use of the International Emergency Economic Powers Act (IEEPA) for broad tariff policy has led to a significant market reaction, with Trump responding by increasing proposed tariffs, which has heightened market volatility and uncertainty [1][2][3]. Market Reaction - The Dow Jones Industrial Average experienced a significant drop of 2.3%, losing over 900 points, marking its worst single-day percentage decline in over a month [3]. - The S&P 500 and NASDAQ also fell by 1.8% and 2.1% respectively, indicating a negative market sentiment towards the new tariff policies [3]. Sector Impact - Retailers such as Walmart and Target saw their shares decline by 3.4% and 4.1% respectively, as analysts began to assess the implications of a 15% tariff on imported consumer goods [4]. - The agricultural sector is facing potential retaliatory duties from Mexico and the EU on American exports like soy and corn, leading to a decline in the Invesco DB Agriculture Fund by 1.5% [10]. Policy Implications - President Trump has framed the new tariffs as an escalation, dismissing the Supreme Court's ruling and suggesting he has other means to impose tariffs, which reflects a confrontational approach to trade policy [5]. - The European Union has paused a pending trade deal with the U.S. until there is clarity on the new tariffs, indicating a cautious stance in international trade relations [6]. Investor Sentiment - The market is experiencing a "Trump Premium," where investors are adjusting for volatility due to Trump's unpredictable statements, as evidenced by a 12.4% increase in the VIX, the market's fear gauge [9]. - The chaos surrounding the tariffs and Trump's communications has led to a perception that the market may soon look back at the recent downturn as a more stable period [11].