Wall Street is set to start Friday gently, as traders wait for two big events that could shape the market’s direction.
Friday Market Preview
In pre‑market trading, the three major U.S. indexes were almost flat. Dow futures were up 6 points (about 0.01%), the S&P 500 was unchanged, and Nasdaq‑100 futures rose roughly 0.1%.
Supreme Court Tariff Ruling Expected
The Supreme Court will announce its decision today on President Donald Trump’s tariffs that were announced in April. The tariffs cover a broad group of trading partners, including India, and range from 10% to 50%.
Lower courts have already said many of these duties exceed the president’s legal authority, saying only Congress can impose broad import taxes. The high court will now decide if the International Emergency Economic Powers Act (IEEPA) lets the president act without congressional approval.
Economic Implications of a Ruling
Analysts think the court is likely to rule against the tariffs. If that happens, the U.S. government may have to repay about $192 billion in tariffs collected in 2025 and another $65 billion in 2026. This could put pressure on the dollar, push up inflation and add strain to the already massive $38 trillion U.S. debt load.
A ruling that declares the tariffs illegal could also lift markets in countries hit hardest by the duties, such as India.
Technical Outlook for Dow, Nasdaq, and S&P 500
Dow Jones: The index has broken out of a 38‑day cup‑and‑handle pattern and is sitting on rising 10‑, 20‑ and 50‑day moving averages. Strong volume suggests genuine buying interest. If the rally holds, the next target is around 50,500, with a longer‑term aim near 52,000.
Nasdaq‑100: The chart shows a tight 66‑day triangle that is starting to form a cup‑and‑handle shape. A clear break above 25,800 could open the path toward 26,600.
S&P 500: The index also broke out of a 38‑day cup‑and‑handle near 6,925, backed by rising short‑term averages. Holding above this level could push the market toward 7,040, and possibly to 7,120 if momentum stays strong.
Disclaimer
Remember, this is just my perspective, not a prediction. Always do your own research or talk to a qualified advisor before making any investment decisions.