Wall Street Cheers End of Greenland Tariffs, Awaits Supreme Court’s Verdict
The stock market experienced a positive shift recently thanks to favorable economic indicators and a change in political strategies. The S&P 500 index rose by 0.55%, closing above 6,900 and nearing its all-time high. This surge is primarily attributed to revised GDP growth estimates and a deviation from President Trump’s previous plans involving Greenland tariffs.
Wall Street Analyzes Tariffs and Economic Growth
Wall Street analysts have noted a marked improvement in market sentiment. Following fears of a transatlantic tariff war, recent developments suggest that Trump’s tariffs have had a lesser economic impact than previously anticipated. According to JPMorgan Chase, the realized tariff rate stands at approximately 11%, lower than initial fears of 15%. Only 14% of S&P 500 companies are significantly impacted by these tariffs.
Supreme Court Expectations
Market predictions indicate that the U.S. Supreme Court may rule against the government regarding tariff implementations. Prediction markets suggest there is over a 65% chance of this outcome. This potential ruling could further enhance investor optimism.
Economic Indicators Boost Investor Confidence
Recent revisions to the Q3 2025 U.S. GDP indicate a growth rate of 4.4%. Chris Zaccarelli, chief investment officer at Northlight Asset Management, highlighted that maintaining growth above 3% could result in double-digit stock market returns. This optimism is bolstered by resilient consumer spending, robust investment in equipment and AI, and increased government expenditures.
Current Market Snapshot
Despite the positive momentum, futures for the S&P 500 were down by 0.24% prior to the New York market opening. Here’s a brief overview of the current market positions:
- S&P 500 futures: -0.24%
- STOXX Europe 600: -0.22%
- U.K. FTSE 100: -0.11%
- Japan’s Nikkei 225: +0.29%
- China’s CSI 300: -0.55%
- South Korea KOSPI: +0.76%
- India’s NIFTY 50: -0.95%
- Bitcoin: Stable at $89.9K
The recent changes in tariff perceptions and economic indicators are contributing to a more stable market environment. As Wall Street braces for the Supreme Court’s verdict, investors are cautiously optimistic about future developments.
