Supreme Court Blocks Trump Tariffs, But Markets Still Playing Defense

150 days. That's how long Trump's new global tariffs can last without Congressional approval. The Supreme Court struck down the president's sweeping tariff powers in a 6-3 decision last Friday, but markets are still playing defense.

The Nasdaq snapped its five-week losing streak, climbing 1.9% for the week. The S&P 500 gained 1.1%, ending a two-week slide. But the numbers tell only half the story.

When Winners and Losers Trade Places

Nike perfectly captured the market's schizophrenia. Shares initially jumped on the Supreme Court news, then closed down 0.3% as reality set in. The company's already bracing for a $1.5 billion tariff hit this fiscal year, and investors know Trump will find alternative routes.

Meanwhile, Big Tech shrugged off tariff concerns entirely. Meta's Tuesday announcement about deploying millions of Nvidia chips in its data centers sent both stocks soaring—2.5% and 3.8% respectively. AI demand doesn't care about trade wars.

Amazon delivered the week's biggest surprise, jumping 5.6% after Bill Ackman's Pershing Square revealed a massive Q4 position increase. Sometimes the best trade is the one nobody sees coming.

The Private Credit Canary

But the real shock came from an unexpected corner. Blue Owl Capital permanently restricted withdrawals from its retail private debt fund Thursday, triggering a 6% stock plunge and sending ripples through the entire financial sector.

Wall Street's calling it the "canary in the coal mine." The private credit market, which has attracted billions in recent years, might have cracks beneath the surface. Ares Management and Blackstone crashed 8% and 6.6% respectively, becoming the S&P 500 financials sector's worst performers.

Our BlackRock holding? Down 1% Thursday, but bounced back Friday to finish the week up 2%. The market's verdict: some private credit exposure, but not enough to panic.

The Real Tariff Game

Trump's new 10% global tariffs can only last 150 days without Congressional action. But he's already hinting at more moves, posting about additional levies Saturday. Tuesday's State of the Union address should provide clearer direction.

Consumer-facing companies like Costco, Procter & Gamble, TJX, and Amazon remain on edge. Tariffs directly impact their pricing strategies, margins, and inventory decisions. The Supreme Court ruling wasn't the all-clear signal many hoped for.

Tech's Unstoppable March

Alphabet lagged early in the week, continuing its post-earnings slide. But we bought more shares, arguing the pullback was unwarranted. The stock rallied later, finishing up 3% for the week.

We also trimmed our Corning position after its massive 2026 run. The fiber optic cable maker gained 4.5% this week, benefiting from AI infrastructure demand. Sometimes the best move is taking profits when everyone else is buying.