The stock market saw a resurgence last week despite navigating a series of encouraging and unsettling news stories. On Friday, the Nasdaq ended its five-week losing streak, gaining strength from significant tech companies such as Meta Platforms, Nvidia, and Amazon, climbing 1.9% throughout the week. The S&P 500 also rose by 1.1% during the holiday-shortened week, ending a two-week downturn, bolstered by a Supreme Court ruling against President Donald Trump's emergency tariffs, which had previously burdened consumer-facing companies due to increased import costs.
The S&P 500 advanced by 0.7% on Friday after the Supreme Court invalidated much of Trump's extensive tariff strategy, stating no prior president had enacted tariffs of such magnitude without clear congressional approval. Although President Trump threatened to impose new 10% global tariffs, these can only last for a maximum of 150 days without further congressional consent. While the court's decision initially boosted stocks hurt by tariffs, such as Nike, its shares eventually fell by 0.3% as investors anticipated Trump's alternative tariff strategies. Other companies, like Costco, Procter & Gamble, TJX Companies, and Amazon, were also affected by the ruling, as previously discussed regarding their pricing, margin, and inventory strategies.
Additionally, tech stocks experienced a revival. Meta announced its plan to incorporate millions of Nvidia chips in its data centers, causing both companies' shares to jump. Meta and Nvidia closed the week up by 2.5% and 3.8%, respectively. Amazon also witnessed a surge, rising 5.6% after Bill Ackman's Pershing Square significantly increased its stake in the e-commerce giant, making it the portfolio's top performer. Despite Alphabet's initial underperformance following its earnings report, the stock rallied later in the week, finishing 3% higher after the Club increased its holdings, arguing the decline was unjustified. The same session saw the Club reduce its Corning position following a remarkable 2026 run; the company's fiber optics have been integral in data centers, boosting its shares by 4.5%, our second strongest performance of the week.
Finally, concerns relating to Blue Owl Capital's private credit issues reverberated across the financial sector, causing fluctuations in financial stock prices last week.