New Highs, New Uncertainties: Wall Street Rallies as Supreme Court Tariff Decision Looms

US stocks closed at fresh records on Tuesday, with the S&P 500 rising 0.6% to surpass its late December high, the Nasdaq 100 gaining 0.9%, and the Russell 2000 advancing 1.4%.

The rally reflects investor optimism regarding AI developments and expectations of more accommodative Federal Reserve monetary policy. The Dow and S&P 500 both reached new record closing highs.

NVIDIA unveiled its next-generation Vera Rubin superchip at CES 2026, reinforcing its AI computing dominance and drawing bullish analyst ratings.

Strong gains by Amazon, Salesforce, and IBM drove the blue-chip index Dow higher.

Amazon reached a record closing high after announcing the rollout of Alexa.com to Alexa+ Early Access customers, positioning itself to compete more directly with ChatGPT and Gemini.

The dollar held tight ranges on Wednesday ahead of US economic data that could shape the Federal Reserve’s rate outlook.

Japan’s service sector expanded at its slowest pace since May in December, as softer overall demand offset a rebound in new export businesses, a private survey showed Wednesday.

Silver traded on pace for a record close above $80 for the first time, extending gains after ending 2025 up more than 140%.

Oil prices extended their decline after US President Donald Trump said Venezuela will be “turning over” up to 50 million barrels to be sold at market price following the toppling and capture of the nation’s leader.

The U.S. Supreme Court has designated Friday as an opinion day, potentially delivering its first ruling on President Trump’s global tariffs. This decision is expected to impact global markets significantly and represents one of the most highly anticipated developments in international trade policy.

The Indian rupee snapped its four-session losing streak, appreciating 11 paise against the dollar to close at 90.17, primarily aided by foreign bank dollar supply.

Nifty extended its decline for the second consecutive session, losing 74 points to close at 26,175.

Despite short-term weakness, the broader positional trend remains bullish, with Nifty continuing to trade above key moving averages that have offered consistent support in recent weeks. The recent swing high of 26,373 will act as immediate resistance, while 26,100 is expected to serve as a key near-term support zone.

Indian markets are poised to open lower in the absence of any strong cues.