The US Supreme Court is poised to deliver rulings on several high-profile cases that could reshape presidential powers and constitutional law. The court may release opinions during its scheduled sitting, with particular attention focused on the challenge to Trump's sweeping global tariffs and other significant constitutional questions.

Trump's Global Tariffs Face Supreme Court Scrutiny

The most closely watched case involves Trump's extensive tariff program, which he implemented by invoking the International Emergency Economic Powers Act of 1977. Trump imposed these so-called "reciprocal" tariffs on goods from nearly every foreign trading partner, justifying the action by declaring a national emergency related to US trade deficits.

During oral arguments held on November 5, both conservative and liberal justices expressed doubts about the legality of the tariffs. The case represents a significant test of presidential authority and the court's willingness to impose limits on executive power. Trump's administration is appealing lower court rulings that found he overstepped his authority in implementing the tariffs.

Economic and Political Stakes

Trump has defended the tariff policy, stating that tariffs have made the United States stronger financially. In a social media post on January 2, he characterized a potential Supreme Court ruling against the tariffs as a "terrible blow" to the United States. The outcome of this case will have substantial implications for the global economy and international trade relationships.

The legal challenges were brought by affected businesses and 12 US states, most with Democratic governors, highlighting the political divisions surrounding the tariff policy.

Additional Major Cases Pending

Beyond the tariffs case, the Supreme Court is expected to rule on other significant constitutional matters:

• Voting Rights Act Challenge: A case testing a key section of the landmark 1965 federal law designed to prevent racial discrimination in voting
• Colorado Conversion Therapy Law: A free speech challenge to Colorado's ban on psychotherapists conducting "conversion therapy" aimed at changing LGBT minors' sexual orientation or gender identity

Court Dynamics and Timing

The Supreme Court, which maintains a 6-3 conservative majority, does not announce in advance which rulings it intends to issue. The court's website indicates that opinions in argued cases may be released when justices take the bench during scheduled sittings.

These pending cases collectively represent some of the most significant constitutional questions facing the court, with implications extending far beyond the immediate parties involved. The rulings will likely influence the balance of power between branches of government and shape policy debates across multiple areas of law.

US stock markets are preparing for a cautious opening on Friday, January 9, as traders position themselves ahead of two significant market-moving events. Pre-market futures indicate minimal movement across major benchmarks, with the Dow Jones Industrial Average futures up 6 points or 0.01%, S&P 500 remaining largely unchanged, and Nasdaq-100 futures showing modest gains of 0.10%.

Supreme Court Tariff Decision Takes Center Stage

The primary focus centers on the US Supreme Court's anticipated ruling on Trump's tariff policies implemented after he resumed presidency in January 2025. The decision will determine whether the president can utilize the International Emergency Economic Powers Act (IEEPA) to impose tariffs without congressional approval. Trump announced tariffs ranging from 10% to 50% in April, targeting multiple trading partners including India.

Lower federal courts have already ruled that many tariffs exceeded presidential authority under existing laws, stating that the statute used does not explicitly empower broad import duties—a power traditionally reserved for Congress. During November 5 arguments, the court's conservative majority expressed serious concerns over this interpretation of federal law.

Financial Implications of Potential Ruling

Analysts anticipate significant financial consequences if the Supreme Court rules against the tariff implementation. The potential impact includes substantial reimbursement obligations and broader economic effects.

Avinash Gorakshkar, a SEBI-registered fundamental equity analyst, expects the ruling to go against Trump, noting that such reimbursements could pressure the US dollar and inflation while impacting an economy already facing substantial debt challenges.

Technical Analysis Reveals Breakout Patterns

Despite the cautious sentiment, technical analysts identify positive chart formations across major indices. Anshul Jain, Head of Research at Lakshmishree, highlights several key developments:

Dow Jones Technical Setup:

• Confirmed breakout from 38-day cup-and-handle formation
• Strong volume expansion validating participation
• Rising 10-, 20-, and 50-day moving averages providing support
• Target zones: 50,500 near-term, 52,000 extended

Nasdaq Compression Pattern:

• 66-day triangle formation on daily chart
• Bullish cup-and-handle structure emerging
• Breakout above 25,800 could target 26,600 zone
• Rising short-term averages reinforcing trend support

S&P 500 Formation:

• Breakout from 38-day cup-and-handle near 6,925
• Strong volume expansion indicating fresh participation
• Near-term target: 7,040, extended target: 7,120

Market Outlook and Risk Factors

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, emphasizes that market reaction will depend on ruling details—whether partial or complete tariff invalidation. A complete declaration of illegality could benefit Indian markets, as India faces 50% tariffs under current policies.

The combination of the Supreme Court decision and upcoming payrolls data creates a complex environment for traders. Technical patterns suggest underlying strength, but fundamental concerns about tariff reversals and their fiscal implications maintain cautious sentiment across trading desks.