Core Viewpoint - The upcoming U.S. Supreme Court decision regarding President Trump's emergency tariff powers could significantly impact financial markets, particularly if the tariffs are struck down [1]. Group 1: Market Reactions - The justices have shown skepticism about Trump's authority to impose tariffs, with online betting markets indicating a 30% chance that the court will uphold the tariffs [2]. - A ruling against the tariffs could lead to increased government revenue, higher Treasury yields, and heightened volatility in equity markets [2]. - Historical context shows that when tariffs were announced in April, stocks fell nearly 5%, but have since recovered, rising over 16% in 2025 [3]. Group 2: Potential Benefits for Companies - If the court rolls back existing tariffs, stocks could see a bounce, particularly for companies that have faced high import costs, with potential refunds estimated between $150 billion to $200 billion [4]. - Sectors likely to benefit include retail, consumer goods, and electronics, as these industries could experience improved margins from tariff relief [5]. - Small-cap stocks are being favored by some investors, with expectations that Federal Reserve actions will support economic growth, and tariff relief could further enhance their performance [6].