Tech stocks initially surged after the Supreme Court struck down President Trump’s tariffs, sending the Nasdaq 100 ETF $QQQ sharply higher. However, the rally faded as institutional investors sold into strength. While many on Wall Street framed the ruling as reducing uncertainty and paving the way for lower inflation and rates, a more cautious view is emerging.
President Trump quickly imposed new 15% tariffs under Section 122 of the Trade Act of 1974, reinforcing that multiple policy tools remain available. Early trading now reflects renewed pressure on technology shares as markets reassess the broader implications.
The bullish case centers on expectations of reduced trade friction, improved global relations, and potential earnings boosts from tariff refunds. The opposing case argues uncertainty may actually rise, with risks of wider budget deficits, higher national debt, upward pressure on interest rates, and a weaker dollar. Tariff revenue had been contributing meaningfully to fiscal dynamics, and refund processes could take years.
Gold and select international markets may benefit from ongoing trade ambiguity. Meanwhile, bitcoin remains range bound despite being promoted as a hedge against uncertainty.
Investors are closely watching whether $QQQ can hold key technical levels as tariff policy evolves. Other assets in focus include $GLD, $EWJ, $EPI, and $BTC amid shifting global capital flows.
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