Markets roared higher today as the Supreme Court’s decision to strike down Trump-era tariffs unleashed a wave of optimism and risk-on sentiment across equities and crypto. Investors cheered the prospect of smoother global trade and lower corporate costs, but persistent inflation data kept the Federal Reserve firmly on hold, tempering talk of imminent rate cuts.

Key Market Themes:

• Tariff Repeal Ignites Risk-On Rally: Equities and crypto surged on expectations of improved global trade and lower input costs.
• Inflation Remains Stubborn: Persistent inflation data is anchoring Fed policy and muting bond market moves.
• Gold and Safe Havens Rise: Despite the risk rally, investors hedged with gold as inflation and policy uncertainty linger.
• Earnings Season in Focus: Corporate results are being scrutinized for tariff impacts and supply chain commentary.

1. Tariff Repeal Sparks Broad-Based Optimism

The Supreme Court’s ruling to eliminate Trump-era tariffs triggered a meaningful shift in sentiment across risk assets. U.S. indices closed near session highs—S&P 500 up 0.69%, Nasdaq up 0.90%—as investors priced in the prospect of reduced supply chain friction, lower import costs, and resurgent global commerce. Trade-dependent sectors led the advance, with outsized gains in technology and industrial names. Companies with significant overseas exposure stand to benefit most, though the complexity of the tariff refund process could delay full financial realization. For investors, this marks a potential inflection point: positioning for multinationals and import-heavy industries could offer above-market alpha as global trade normalizes.

2. Sticky Inflation Keeps Fed on the Sidelines

Even as equities and crypto rallied, the release of persistent inflation data reinforced expectations that the Federal Reserve will remain on hold. The bond market’s muted reaction, especially on the short end of the curve, signals that investors are not yet pricing in an imminent policy pivot. This tension between risk-on sentiment and inflation-driven caution is likely to persist—should inflation moderate, rate cut hopes could reignite; if not, the current optimism may prove fleeting. Investors should monitor CPI prints and Fed commentary closely, as the interplay between macro data and policy will drive cross-asset performance in coming weeks.

3. Gold Shines as a Dual Hedge

Gold jumped 2.65% to $5,130.00, outperforming most traditional safe havens. This move reflects a nuanced market dynamic: while risk assets are in favor, a parallel bid for gold highlights persistent anxiety around inflation and global policy uncertainty. The precious metal’s rally suggests that investors are seeking both growth opportunities and protection—balancing risk exposure with inflation hedges. For portfolio construction, maintaining some allocation to gold or inflation-protected assets remains prudent as the macro landscape evolves.

4. Crypto Markets Accelerate on Macro Tailwinds

Bitcoin rallied sharply, with institutional and retail flows accelerating following the tariff reversal. The broad positive momentum extended to Ethereum and other major digital assets, as crypto markets responded to improved macro stability and a friendlier capital flow environment. Increased correlation between equities and crypto is evident: both asset classes are benefiting from the global trade optimism and the search for alternative growth avenues. Regulatory clarity and institutional adoption remain key themes to watch, as further positive macro catalysts could sustain the current uptrend.

Market Performance Snapshot

Earnings Highlights & Corporate Developments

• RingCentral Inc. (RNG): $39.50 (+34.40%)
  RingCentral surged after reporting $644.03M in revenue and $103.99M in earnings, beating expectations. The company’s cloud communication services are gaining traction amid robust demand for remote work solutions.
• Legence Corp. (LGN): $55.24 (+16.84%)
  Legence posted strong results, driven by its engineering and consulting segment with $708.01M in revenue. Analysts remain bullish on its sustainable building solutions.
• JFrog Ltd. (FROG): $37.75 (-24.94%)
  JFrog tumbled following a net loss of $71.82M. Concerns over profitability and growth strategy led to analyst downgrades and a swift sell-off.
• DNOW Inc. (DNOW): $13.23 (-19.13%)
  DNOW disappointed with $23M in earnings on $959M in revenue, citing ongoing supply chain challenges that weighed on performance.

Looking Ahead: Key Catalysts

• Earnings Watch: NVIDIA (NVDA) report next week; results could provide crucial insight into AI sector.
• Inflation & Fed Signals: Upcoming inflation data and FOMC commentary will shape rate expectations and risk appetite.
• Tariff Refund Implementation: Investors will monitor how quickly companies realize financial benefits from the tariff rollback and how this influences forward guidance.
• Global Market Spillover: Watch for international equity and commodity responses as global trade normalizes and supply chains adjust.