Wall Street cheers end of Trump’s Greenland drama; hopes Supreme Court will kill the other tariffs

In fact, Trump’s tariffs turned out to be a much smaller economic deal than “previous worst-case concerns,” says JPMorgan Chase. Companies adjusted their prices and supply chains, with the result that “the realized tariff rate was much lower at approximately 11% (versus expectations of 15%),” according to Dubravko Lakos-Bojas and his team. “Only 14% of S&P 500 companies are highly sensitive to tariffs.”

The bank says things could improve if the US Supreme Court rules against the president.

“Prediction markets are assigning odds of over 65% that the Supreme Court will rule against the government, and those odds have always been against the government, especially after the Supreme Court’s oral arguments in November,” Lakos-Bogas told clients.

Analysts were also cheered by a new upward revision to US GDP for the third quarter of 2025, at 4.4%.

“The 4.4% real growth rate is well above normal and will likely moderate over the course of the year, but if we can stay above 3% for the full year, it could lead to double-digit returns in the stock market,” Chris Zaccarelli, chief investment officer at Northlight Asset Management, said in an email seen by me. luck.

EY-Parthenon chief economist Gregory Daco was singing from the same hymnbook. “Momentum was driven by resilient consumer spending, robust equipment and AI-related investments, a big boost from net international trade, and a rebound in federal government expenditures,” he said in a note. “The U.S. economy is neither overheating nor stalling; it is adjusting.”

All of this explains the calm we are witnessing in the markets today.

“For some assets, it was as if the sell-off had never happened, with the VIX volatility index (-1.26 points) back at 15.64 points, below its levels before Saturday’s tariff announcements,” said Jim Reed and his team at Deutsche Bank.

Here’s a quick snapshot of the markets before the opening bell in New York this morning:

• Standard & Poor’s 500 Futures were down 0.24% this morning. The last session closed at an increase of 0.55%.
• Stokes Europe 600 It decreased by 0.22% in early trading.
• FTSE 100 index in the United Kingdom It fell by 0.11% in early trading.
• Japan’s Nikkei 225 It rose by 0.29%.
• China CSI 300 Decreased by 0.55%.
• South Korea Cosby It rose by 0.76%.
• India Nifty 50 Decreased by 0.95%.
• Bitcoin It was flat at $89.9K.