Dow Jones crashes today: why is Dow down today despite the tariff ruling? S&P 500 and Nasdaq outperform on tech rebound

Dow Jones crashes today: The Dow Jones Industrial Average fell 104.34 points to 49,290.82 on Friday, even as the broader market held firm after a landmark U.S. Supreme Court ruling on tariffs. The Dow slipped 0.21%, while the S&P 500 rose 0.15% to 6,871.97 and the Nasdaq Composite gained 0.41% to 22,776.33.

The split performance reflects a market digesting major policy, economic, and corporate developments at once. The Supreme Court struck down most of President Donald Trump’s sweeping tariff policy under the International Emergency Economic Powers Act, ruling that the law “does not authorize the President to impose tariffs.” The decision removes a layer of trade uncertainty for import-heavy sectors.

Before the Supreme Court ruling even landed, markets were already absorbing a badly missed GDP print. U.S. gross domestic product grew at just 1.4% in the fourth quarter of 2024. The consensus forecast from economists surveyed by Dow Jones was 2.5%. The prior quarter had posted 4.4% growth.

Compounding the GDP disappointment was Friday’s PCE inflation report. Core personal consumption expenditures — the Federal Reserve’s preferred inflation measure, which strips out food and energy — came in at 3.0% for December. That matched forecasts, but matching a bad number is still a bad number. The Fed’s target is 2%.

Investors are now balancing trade relief optimism with slower growth concerns. That tension explains why the Dow is down today even as tech and retail stocks rally.

Why the Dow Is Down Today While S&P 500 and Nasdaq Gained

The Dow Jones Industrial Average is a price-weighted index of 30 large, predominantly industrial and traditional blue-chip companies. That composition matters enormously on a day like this.
The tariff ruling was most immediately valuable to tech-heavy, import-dependent companies — firms that source heavily from China, run global supply chains, or sell consumer goods online. Those companies populate the Nasdaq and the broader S&P 500 in much greater concentration than they do the Dow. Intel, a Dow component, dropped $1.08, or 2.42%, to $43.54. That single move dragged on the index. Tesla fell $1.29. Palantir slipped $0.40. These are not companies that benefit cleanly or immediately from a tariff rollback. Meanwhile, Amazon — not a Dow component — surged 2.04% to $209.04 on the direct relief that lower Chinese import costs would bring to its marketplace model.

In a price-weighted index like the Dow, a few high-priced stocks falling hard can overwhelm gains elsewhere. That’s precisely what happened today.

Supreme Court blocks Trump tariffs under IEEPA

Supreme Court of the United States ruled that the International Emergency Economic Powers Act does not authorize the President to impose tariffs. The majority opinion struck down most of the administration’s sweeping tariff policy.

The decision did not address whether previously paid tariffs must be refunded. That question now shifts to lower courts.

Markets had largely expected the ruling. Portfolio managers noted that Wall Street anticipated the legal challenge would succeed. That muted the broader market reaction.

Still, the tariff decision removes immediate pressure from sectors heavily dependent on imports from China and other trade partners. It also injects new uncertainty. The White House may pursue alternative legal mechanisms to reimpose tariffs.

Investors now ask a new question: What will President Trump do next on trade?

Amazon stock rises as tariff pressure eases

Amazon jumped 2.04% to $209.04 after the ruling. Analysts estimate that up to 70% of Amazon’s goods are sourced from China. Tariffs had already begun pushing prices higher on certain items.

When tariffs increase costs, companies often pass them on to consumers. Higher prices reduce demand. That pressure can weigh on revenue growth and margins.

With the court ruling removing immediate tariff risk, Amazon investors responded quickly. Relief in pricing pressure is a direct earnings tailwind.

Other retailers also moved higher. The State Street SPDR S&P Retail ETF briefly climbed 1.8% intraday. Stocks like Floor & Decor, Crocs, Abercrombie & Fitch, RH, and Wayfair rallied after the announcement.

Industry groups welcomed the decision. Retail and footwear associations said the removal of widespread tariffs could redirect billions of dollars toward investment, hiring, and affordability.

Will tariff refunds become economic stimulus?

The Supreme Court ruling was silent on whether the government must refund tariffs already paid. That issue now moves to lower courts.

If refunds are ordered, it could amount to a form of economic stimulus. Companies that paid higher import duties would recover cash. That could improve balance sheets, increase capital spending, or boost shareholder returns.

Markets are beginning to factor in that possibility. But uncertainty remains high. Businesses must now navigate legal ambiguity and potential new tariff pathways.

Nasdaq outperforms as tech stocks rebound

While the Dow fell, the Nasdaq rose more than 93 points. Technology stocks showed resilience.

NVIDIA gained 0.89% to $189.57. Investors are also positioning ahead of Nvidia earnings next week, a major catalyst for the AI and semiconductor sector.

The Nasdaq is now set to snap a five-week losing streak. It is up more than 1% this week. The S&P 500 is also on pace for a 0.7% weekly gain. The Dow, despite Friday’s decline, is still up 0.1% for the week.

This divergence shows investors rotating toward growth and technology stocks while remaining cautious on cyclical and industrial names.

Today’s stock market movers: Nvidia, Intel, Tesla and more

Among active stocks, several names saw heavy volume:

• Opendoor Technologies rose 6.9% to $4.97 on 86 million shares traded.
• Intel fell 2.42% to $43.54.
• Palantir Technologies dipped 0.30% to $134.49.
• Tesla eased 0.31% to $410.42.

In leveraged ETFs, ProShares UltraPro QQQ climbed 2.72%, reflecting tech strength. Semiconductor bull ETF SOXL gained 2.90%.

The action shows strong interest in high-beta tech exposure despite macro uncertainty.

Gold, silver and oil prices react to economic data

Commodity markets also responded to the mixed economic picture.

WTI crude oil slipped slightly to $66.32 per barrel. Brent crude traded near $70.53. Natural gas jumped 4.21% to $3.12.

Gold surged 1.87% to $5,091. Silver rose 6.49% to $82.67.

The rise in precious metals suggests investors are hedging against economic uncertainty and persistent inflation. Gold often gains when growth slows or policy risk rises.

The market reaction to the Supreme Court ruling was relatively muted because it was widely expected. The bigger story may unfold in the coming weeks.

Investors are closely watching:

• Nvidia earnings next week.
• Upcoming inflation data releases.
• Federal Reserve commentary on interest rates.
• Potential White House action on alternative tariff mechanisms.
• Lower court decisions on tariff refunds.

Chief investment strategists say the ruling adds another layer of uncertainty rather than removing it entirely. Companies have already been adapting to tariff volatility. Now they must assess refund risks and potential policy pivots.