Here's what happened on Wall Street Friday: The stock market had a rollercoaster day. The Dow Jones added 230.81 points, or 0.47%, ending at 49,625.97, recovering from a 200-point loss earlier in the session on disappointing economic data.
The morning started rough when the government released major economic reports. U.S. gross domestic product grew at an annualized rate of 1.4% in the fourth quarter of 2025, marking a sharp slowdown from the prior quarter's 4.4% expansion pace and coming in sharply below economists' expectations for 3% growth. That's basically the economy moving in slow motion.
To make matters trickier, inflation didn't cooperate either. Core PCE — the Federal Reserve's preferred inflation gauge — advanced to 3% from 2.8%, topping expectations for an acceleration to 2.9%. Translation: prices are still climbing faster than the Fed wants them to.
The mood shifted dramatically midday when the Supreme Court delivered a major ruling. The Supreme Court, in a 6–3 decision, ruled that President Trump exceeded his authority in using a federal emergency-powers statute to impose "reciprocal" global tariffs. This decision sparked what traders call a "relief rally." Retailers and tech companies especially benefited since they worry about tariff costs hitting their bottom lines. Amazon and Home Depot jumped 2% as investors weighed potential refunds of $175 billion against the threat of these new levies.
Bottom line: Markets faced conflicting signals—weak growth and sticky inflation balanced against a win for free trade. Friday's rally shows investors viewed the tariff clarity as more important than the disappointing growth numbers, at least for now.