Markets React as Supreme Court Strikes Down Trump Tariffs, California Lends Aid to Bay Area Transit

The US Supreme Court's rejection of Donald Trump's tariffs has sent shockwaves through the markets, with trade-linked stocks experiencing significant fluctuations. The decision, announced on Friday, has left traders scrambling to assess the president's plans for the program, which was first announced last year and sent markets careening.

Trade-Linked Stocks React

Trade-related stocks, including retailers, industrials, and autos, spiked immediately after the news broke. According to Bloomberg's Poonam Goyal, "The court's decision is a significant development for trade-related stocks, which have been highly volatile in recent months." The stocks' reaction is a testament to the uncertainty surrounding the tariffs and their impact on global trade.

The Supreme Court's decision is seen as a major blow to Trump's trade policy, which has been a key aspect of his presidency. The tariffs, which were imposed on a range of goods, including steel and aluminum, were aimed at protecting American industries. However, they have been widely criticized for their potential to spark a global trade war.

Markets Whipsaw

The markets' reaction to the news was swift and decisive. Stocks whipsawed, with the Dow Jones Industrial Average experiencing significant fluctuations. The dollar and bonds also fell, as investors sought to assess the implications of the court's decision. Crypto, gold, and oil prices remained relatively stable, as traders waited for further guidance from the White House.

California Lends Aid to Bay Area Transit

In other news, California Governor Gavin Newsom signed legislation authorizing the state to lend $590 million to keep major public-transit operators around San Francisco running. The move is aimed at supporting the struggling transit system, which has been hit hard by post-pandemic travel patterns.

The loan is seen as a lifeline for the Bay Area's transit system, which has been facing significant financial challenges. According to Newsom, "This loan will help ensure that our public-transit system remains operational and continues to provide essential services to our communities."

JPMorgan Prepares $5 Billion Debt Deal

In a separate development, JPMorgan Chase & Co. is preparing to raise $5.3 billion of debt to support Qualtrics International Inc.'s purchase of health-care survey firm Press Ganey Forsta. The deal is seen as a test of the market's appetite for software-related debt.

According to people familiar with the matter, the lender group led by JPMorgan is preparing to launch the debt deal in the coming weeks. The move is seen as a significant development in the software sector, which has been experiencing rapid growth in recent years.

Conclusion

The Supreme Court's decision to strike down Trump's tariffs has sent shockwaves through the markets, with trade-linked stocks experiencing significant fluctuations. Meanwhile, California's decision to lend aid to the Bay Area's transit system and JPMorgan's preparation of a $5 billion debt deal are seen as significant developments in their respective sectors. As the markets continue to react to the news, one thing is clear: uncertainty remains a major factor in the global economic landscape.

Sources:

• Bloomberg: "Stocks Whipsaw as Court Strikes Down Trump Tariffs"
• Bloomberg: "Trade-Linked Stocks Fluctuate as Supreme Court Strikes Down Tariffs"
• Bloomberg: "JPMorgan to Test Appetite for Software With $5 Billion Debt Deal"
• Bloomberg: "California Lending $590 Million to Keep Bay Area Transit Running"
• Bloomberg Surveillance 2/20/2026