LIVE MARKETS-Supreme Court tariff case may bring market volatility

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

SUPREME COURT TARIFF CASE MAY BRING MARKET VOLATILITY

The Supreme Court on Wednesday will begin hearing arguments on whether U.S. President Donald Trump’s tariff policies are legal, and any indication that they could be struck down could increase market volatility.

Although a decision will not come immediately, traders will focus on questions from the Supreme Court justices to gauge their thoughts.

“Often observers use the tone of the questions to infer the ultimate direction of the outcome. It’s not perfect but seems to work often enough,” Steve Englander, head, global G10 FX research and North America macro strategy Standard Chartered Bank NY Branch, said in a report.

“In any event the speed with which oral arguments were scheduled raises the risk that we get a final decision in late November or early December,” he added.

The Supreme Court decision will hinge on whether Trump overstepped his authority in imposing most of his tariffs under a 1977 law known as the International Emergency Economic Powers Act. The tariffs were challenged by various businesses and 12 U.S. states.

Trump has said tariff revenues will help to reduce the deficit.

“The market serenity likely reflects a view that the Supreme Court will tinker around the edges but not make wholesale changes that affect tariff collection,” Englander said.

“Asset markets could reprice fiscal risk if it looks like tariffs will be struck down and if there is uncertainty on whether the alternatives are effective in stabilizing future deficits. Uncertainty over damages or refunds add could add volatility.”

(Karen Brettell)

EARLIER ON LIVE MARKETS:

SHUTDOWN DRAGS ON, BUT GOLDMAN SEES LIGHT AT MID-NOVEMBER CLICK HERE

TRUCE, TOKENS, AND TECH: JEFFERIES UNVEILS THEIR S&P 500 MOONSHOT CLICK HERE

SCHRODINGER'S PMI: IS U.S. FACTORY ACTIVITY EXPANDING OR CONTRACTING? YES CLICK HERE

URANIUM SCARCITY: BANE OR BOON? CLICK HERE

AI REVENUES TO HIT $975 BILLION BY 2030, SAYS CITIGROUP CLICK HERE
FUTURES POINT TO HIGHER OPEN FOR S&P 500, NASDAQ CLICK HERE

THE CONTRADICTION OF RETAIL INVESTORS AND PRIVATE CREDIT - BOFA CLICK HERE

EARNINGS SEASON HALFWAY SCORE: US LEAVES EUROPE FAR BEHIND CLICK HERE

AUTOS BOUNCE BACK, DAX OUTPERFORMS CLICK HERE

BEFORE THE BELL: EUROPE STARTS NOVEMBER STEADY CLICK HERE

PRIVATE JOBS IN SPOTLIGHT AMID DATA BLACKOUT CLICK HERE