Market On Open, Friday 9 January

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SCOTUS Day

by Alex King, CEO, Cestrian Capital Research, Inc

The Supreme Court is expected to rule today re. the Administration’s tariff policy. Whilst we may see some ripples in the market whatever the verdict, I would be surprised if it delivers any lasting accelerant or retardant. At present the market has learned to live with the rising tariff- and non-tariff-barriers that are an increasingly common feature of global trade. The market also knows that the inflationary potential of tariffs is being absorbed within corporate cost bases and the prices not passed onto U.S. consumers in full - that in short the effect has been muted. So if the tariffs are tossed, it won’t mean a transformation in demand or in corporate earnings, and if kept, well, then there’s no change. Anything in between is likely a “meh” reaction in my view. I suspect any equity dips that may come along are buying opportunities in this sustained bull market.

Let’s get to work - there’s a lot to cover.