The Dow gained 200 points as the Supreme Court reviewed arguments on Trump’s tariff policy

U.S. stocks climbed on Wednesday as the Supreme Court’s sharp questioning of President Donald Trump’s tariff authority fueled optimism that some duties could be rolled back. Tech shares — particularly those tied to artificial intelligence — also rebounded after a brief pullback driven by valuation worries.

The Dow Jones Industrial Average advanced 225.76 points (0.48%) to 47,311.00, while the S&P 500 rose 0.37% to 6,796.29. The Nasdaq Composite gained 0.65%, closing at 23,499.80.

Investors focused on the Supreme Court hearing over whether Trump had the legal right to impose tariffs under the International Emergency Economic Powers Act (IEEPA). Justices from both conservative and liberal wings pressed Solicitor General D. John Sauer on the administration’s justification for the sweeping tariffs, signaling skepticism about their legality.

Following the hearing, traders in prediction markets trimmed bets that the court would uphold the tariffs. Stocks sensitive to trade policy — including Ford and General Motors — jumped more than 2% each, while Caterpillar surged about 4%.

“We’re still debating how effective these tariffs are,” said Phil Blancato, chief market strategist at Osaic. “We likely won’t know their full impact until early next year, which adds to the uncertainty.”

In the tech space, Advanced Micro Devices (AMD) recovered from early losses to close 2.5% higher after reporting third-quarter results that topped expectations. The rebound helped lift other AI-related names, including Broadcom (up 2%) and Micron Technology (up 9%). Oracle also gained, bouncing back from Tuesday’s decline.