By Alex Financials

🏛️ Supreme Court Ruling Sends Stocks Higher

U.S. equity markets rallied on Friday after the Supreme Court struck down key tariff authority tied to former President Trump’s trade policy, cutting pressure on investors already jittery from ongoing inflation and geopolitical concerns. The Dow Jones, S&P 500, and Nasdaq all trended higher as traders interpreted the decision as removing a major macroeconomic sword of Damocles.

• Market breadth improved, with tech and consumer sectors leading gains.

• Small-cap stocks softened, possibly reflecting risk-off positioning among smaller names.

This decision offered relief from months of tariff-driven volatility — widely cited as a contributing factor to the broader 2025-2026 U.S. market downturn.

📈 Big Tech and Consumer Stocks Rally

Several marquee names were notable movers:

• $AMZN (Amazon.com Inc.) climbed strongly, continuing a bounce from recent weakness that’s seen the stock extend gains for multiple sessions.

• $NVDA (Nvidia Corp.) remained a market bellwether, lifting broader indices thanks to sustained demand in AI infrastructure.

• Earnings-linked performers such as AppLovin and Fabrinet also posted sizable upticks, showing strength across disparate technology segments.

Investors are watching tech closely, balancing hopes for earnings growth against concerns about stretched valuations following recent turbulence.

📊 Investors Withdrawing from U.S. Equities

Despite the rally, a fresh report highlights a notable outflow of U.S. capital from domestic stock markets — the fastest pace in at least 16 years. This trend suggests that some institutional and global investors are reallocating assets abroad or to other risk classes, tempering confidence in the long-term bullish narrative.

Analysts attribute this shift partly to fading dominance of Big Tech relative to other markets, and residual concerns from earlier tariff and inflation cycles.

🚜 Industrial Goods and Earnings Momentum

Outside headline tech moves, corporate catalysts are providing fresh narratives:

• $DE (Deere & Company) shares spiked sharply after the firm announced expansion of U.S. manufacturing facilities and favorable emissions-cutting machinery approvals. This show of confidence in industrials illustrates how earnings news and strategic investments can drive stock momentum even in uneven markets.

Industrial sectors, often sensitive to infrastructure spending and global growth prospects, remain in focus as investors seek diversification beyond tech.

🔍 Market Outlook and Indicators to Watch

Key data points driving sentiment today include:

🧾 PCE Inflation Figures — A core inflation snapshot that markets watch for clues on Federal Reserve policy direction. Early readings showed a slightly hotter core rate than expected, but traders largely shrugged it off.

💼 Economic Growth Signals — Mild GDP growth in late 2025 suggests the economy remains resilient despite headline risks.

Investors will be watching future inflation data and upcoming earnings seasons as the next catalysts for major directional moves.

🧠 What This Means for Traders & Investors

• Bullish reinterpretation of trade policy risks lifted sentiment today.

• U.S. equity outflows indicate some investors remain cautious.

• Tech and consumer leaders continue to anchor market performance, with potential recalibration ahead as earnings seasons progress.

• Broader sector participation — from industrials to data-driven firms — suggests market leadership is slowly diversifying.