Stocks rise after Supreme Court ruling against US tariffs

NEW YORK (AFP)

Wall Street stocks advanced on Friday as markets digested a US Supreme Court decision striking down some of the White House's sweeping tariffs and President Donald Trump's response vowing new levies.

The conservative-majority top court ruled six-three that a 1977 law known as the International Emergency Economic Powers Act Trump has relied on "does not authorise the president to impose tariffs."

A furious Trump, who nominated two of the justices who repudiated him, said he was "absolutely ashamed" of some justices "for not having the courage to do what's right for our country" and vowed to impose a uniform tariff of 10% under a separate authority.

Wall Street stocks, which had opened lower following disappointing US economic data, pushed into positive territory and also ended higher following a choppy session. The S&P 500 ended up 0.7 percent.

Some analysts said they expect the ruling to lead to lower inflation, but others described the situation as fundamentally uncertain.

In Europe, a closely watched survey on Friday showed that business activity in the eurozone accelerated in February, indicating that the region's economy is on a more stable footing.

British firms also boosted output in February, according to the purchasing managers' index published by S&P Global.

London's FTSE 100 stock index hit a fresh record high, as did the CAC 40 in Paris.

Oil prices, which surged to multi-month highs this week on US suggestions of military action against Iran, moved sideways as markets kept an eye on geopolitics.

Asked by a reporter on Friday whether he was contemplating a limited military strike, Trump answered: "The most I can say -- I am considering it."

Also Friday, data showed the US economy expanded at a 1.4 percent annual rate in the October to December period, significantly below the 2.5 percent pace that analysts had forecasted for the quarter.

The period included a lengthy US government shutdown amid a budget fight between Trump and Congress.