US open: Stocks rise despite weak GDP and firm inflation as Supreme Court strikes down Trump tariffs

(Sharecast News) - Major indices were in the green early on Friday as market participants digested key inflation data, disappointing fourth quarter GDP figures and a Supreme Court decision on Donald Trump's sweeping tariff regime.

As of 1530 GMT, the Dow Jones Industrial Average was up 0.38% at 49,581.87, while the S&P 500 advanced 0.44% to 6,892.42 and the Nasdaq Composite came out of the gate 0.62% firmer at 22,822.73.

The Dow opened 186.71 points lower on Friday, taking a bite out of losses recorded in the previous session after December's blowout trade defecit.

Friday's primary focus was news that US economic growth slowed sharply at the end of 2025 while inflation remained stubborn - a combination that will likely complicate the Federal Reserve's path on interest rates.

According to the Bureau of Economic Analysis, fourthquarter gross domestic product rose at an annualised rate of just 1.4%, well below the 2.5% expected by economists, marking a clear loss of momentum from the 2.8% expansion recorded across 2024 and the strongerthanforecast performance seen earlier in 2025. Fullyear growth eased to 2.2%.

At the same time, inflation stayed firm, with core personal consumption expenditures, the Federal Reserve's preferred inflation gauge, excluding food and energy, rising 3% yearonyear in December, matching expectations but remaining well above the central bank's 2% target. Headline PCE accelerated to 2.9%, slightly hotter than forecast. Both measures increased 0.4% on the month, compared with consensus estimates of 0.3%.

The data landed shortly after Donald Trump warned that GDP would come in soft, blaming the weakness on the government shutdown that ended in November.

"The Democrat Shutdown cost the USA at least two points in GDP. That's why they are doing it, in mini form, again. No Shutdowns!" Trump said on social media. "Also, LOWER INTEREST RATES. "Two Late" Powell is the WORST!!!"

Elsewhere on the macro front, US business activity lost momentum in February, with S&P Global's flash PMI readings pointing to the slowest pace of privatesector growth in nearly a year. S&P's manufacturing PMI slipped to 51.2 from 52.4 in January, missing expectations for 52.6 and marking the weakest improvement in seven months, while the services PMI also eased, falling to 52.3 from 52.7, below forecasts for a rise to 53 and signalling the softest expansion in the sector in ten months. As a result, the composite PMI dropped to 52.3 from 53.0, its lowest level since April 2025.

On another note, consumer sentiment was revised slightly lower in February, according to the University of Michigan's latest survey, though confidence remained at its highest level since August 2025. The headline index was marked down to 56.6 from the preliminary 57.3, little changed from January's 56.4. The report showed minimal movement across all major components, indicating that households saw few changes in broader economic conditions over the month. Inflation continued to weigh on sentiment, with 46% of respondents citing high prices as a strain on personal finances - the seventh straight month that the figure has remained above 40%.

Finally, newhome sales eased slightly in December but remained close to a fouryear high, according to the Commerce Department, which revealed sales of new singlefamily homes fell 1.7% to an annualised 745,000 units, down from November's peak but comfortably ahead of the 730,000 expected by economists. December's figure marked the secondstrongest reading of the year, underscoring ongoing resilience in the housing market despite higher mortgage rates.

Market participants were also locked in on news that the US Supreme Court ruled that Donald Trump had exceeded his authority when imposing sweeping tariffs under emergencypowers legislation. In a 6-3 decision, the court found that the International Emergency Economic Powers Act "does not authorise the President to impose tariffs", striking down the measures. The ruling saw the three liberal justices - Ketanji Brown Jackson, Elena Kagan and Sonia Sotomayor - joined by conservatives Amy Coney Barrett, Neil Gorsuch and Chief Justice John Roberts in the majority. Justices Brett Kavanaugh, Samuel Alito and Clarence Thomas dissented.

Geopolitics will also remain in focus after tensions between the US and Iran escalated, with Trump saying he will decide within 10 days whether or not he will move to authorise military strikes. Oil prices rose overnight amid fears of a potential conflict in the Middle East.

No major corporate earnings were slated for release on Friday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Cisco Systems Inc. (CSCO) $78.93 0.97%

Visa Inc. (V) $321.76 0.00%

Merck & Co. Inc. (MRK) $121.15 0.00%

Caterpillar Inc. (CAT) $754.18 0.00%

Dow Jones - Fallers

Intel Corp. (INTC) $43.31 -4.72%

Amgen Inc. (AMGN) $373.27 -1.70%

Apple Inc. (AAPL) $261.99 -0.89%

Microsoft Corp. (MSFT) $397.63 -0.49%

S&P 500 - Risers

eBay Inc. (EBAY) $88.24 7.37%

Mattel Inc. (MAT) $18.05 4.46%

TripAdvisor Inc. (TRIP) $10.91 4.30%

Dollar Tree Inc (DLTR) $137.88 4.03%

J.B. Hunt Transport Services Inc. (JBHT) $231.52 3.61%

F5 Inc. (FFIV) $286.82 3.29%

Paypal Holdings Inc (PYPL) $42.62 2.82%

NetApp Inc. (NTAP) $103.98 2.63%

Amazon.Com Inc. (AMZN) $209.40 2.25%

DENTSPLY Sirona Inc. (XRAY) $12.75 2.08%

S&P 500 - Fallers

Akamai Technologies Inc. (AKAM) $98.72 -9.69%

Booking Holdings Inc. (BKNG) $4,061.33 -4.89%

Intel Corp. (INTC) $43.31 -4.72%

Seagate Technology Plc (STX) $406.00 -4.28%

United Airlines Holdings Inc (UAL) $111.96 -4.25%

Copart Inc. (CPRT) $36.17 -4.19%

Ipg Photonics Corp. (IPGP) $132.57 -4.13%

American Airlines Group (AAL) $13.65 -3.16%

Western Digital Corp. (WDC) $287.89 -2.92%

Charter Communications Inc. (CHTR) $233.13 -2.51%

Nasdaq 100 - Risers

eBay Inc. (EBAY) $88.24 7.37%

Qvc Group Inc Series A (QVCGA) $4.33 5.87%

Dollar Tree Inc (DLTR) $137.88 4.03%

J.B. Hunt Transport Services Inc. (JBHT) $231.52 3.61%

Paypal Holdings Inc (PYPL) $42.62 2.82%

Biomarin Pharmaceutical Inc. (BMRN) $63.56 2.80%

Amazon.Com Inc. (AMZN) $209.40 2.25%

DENTSPLY Sirona Inc. (XRAY) $12.75 2.08%

Alphabet Inc. Class A (GOOGL) $309.54 2.05%

Alphabet Inc. Class C (GOOG) $309.90 1.96%

Nasdaq 100 - Fallers

Liberty Global plc Series C (LBTYK) $11.70 -7.62%

Liberty Global plc Series A (LBTYA) $12.16 -6.68%

Booking Holdings Inc. (BKNG) $4,061.33 -4.89%

Intel Corp. (INTC) $43.31 -4.72%

Trip.com Group Limited (TCOM) $54.00 -4.64%

Seagate Technology Plc (STX) $406.00 -4.28%

American Airlines Group (AAL) $13.65 -3.16%

Western Digital Corp. (WDC) $287.89 -2.92%

Baidu Inc. (BIDU) $134.34 -2.56%

Charter Communications Inc. (CHTR) $233.13 -2.51%