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S&P 500 rises to day's high as Trump decides to overrule SCThe yields on the benchmark 10-year sovereign bonds cooled nearly 10 basis points after Trump's decision to impose additional tariffs.By CNBCTV18.com February 21, 2026, 2:02:02 AM IST (Updated)2 Min ReadThe S&P 500 surged to near the day's high after the US President decided to reverse the Supreme Court's decision to strike down the tariffs imposed on America's trading partners.

The yield on the benchmark 10-year bonds fell as much 10 basis points after moving close to 5% after the SC decision earlier. The yield fell to 4.09% as of 12:33 am (IST) on Feb 21, after rising as high as 4.107% earlier in the day.

Bond yields pared some losses after reports indicated the White House could move swiftly to reimpose certain duties under alternative authorities.

The S&P 500 moved up 0.6%, while the Nasdaq Composite rose 0.9%. The Dow Jones Industrial Average added 139 points, or 0.3%, recovering from a 200-point loss earlier in the session on disappointing economic data.

Shares of Amazon, which imports the bulk of its products from China, jumped 2% after the SC called the earlier tariffs illegal.

Other large-cap retailers and technology stocks with China exposure also advanced.

“We are not revising our US economic outlook as we expect tariffs to remain through other avenues,” TD Securities strategists told Bloomberg.

The markets were also affected by macro-economic data earlier. The US' gross domestic product (GDP) grew at an annualised rate of 1.4% in the fourth quarter, compared to 4.4% a year earlier. Overall, the economy expanded 2.2% last year. Core inflation rose 0.4% in December, the sharpest rise in nearly a year.

In fresh remarks late Thursday, the President said the administration is exploring alternative legal mechanisms to reinstate tariffs, including invoking national security provisions under existing trade laws. Treasury Secretary Scott Bessent later confirmed the administration will use Section 122 authority along with potentially expanded Section 232 and Section 301 tariffs, which Treasury estimates will keep 2026 tariff revenue virtually unchanged.

Stock futures pointed to continued volatility in the next session amid uncertainty over the legal path for tariffs and potential market reactions to new trade measures.

Traders are now closely watching upcoming inflation and labour market data for further policy signals.

The article will be updated with more details soon.Continue Reading(Edited by : Sriram Iyer)First Published: Feb 21, 2026 12:35 AM ISTTagsglobal marketstrump tariffs