Former President Donald Trump has publicly connected the recent surge in US stock markets, which saw the Dow Jones hit a historic peak, directly to his aggressive tariff policies. In a social media post, he framed these import duties as a cornerstone of both economic vigour and national security, while making a fervent appeal to his supporters.
Legal Battle Over Presidential Trade Powers
The context for Trump's statement is a significant legal challenge to the sweeping tariff regime he reinstated after returning to the White House. Lower federal courts have consistently ruled that the administration overstepped its legal authority by imposing broad tariffs on imports from dozens of countries.
In a pivotal ruling in May 2025, a federal court determined that Trump exceeded the powers granted by the International Emergency Economic Powers Act (IEEPA). The court issued a permanent injunction against enforcing the tariffs, stating the law does not provide "unlimited tariff authority." This decision was later upheld on appeal. Consequently, the Trump administration has petitioned the United States Supreme Court to settle whether emergency economic powers can be used to levy such tariffs, with the duties remaining in effect during the appeal process.
Wall Street's Record-Breaking Rally
The markets Trump referenced saw a powerful rally on Monday, January 6, 2026. The Dow Jones Industrial Average soared 1.23% to close at a record 48,977.18. Similarly, the S&P 500 gained 0.64% to 6,902.05, and the Nasdaq Composite added 0.69% to 23,395.82. Trading volume was notably heavy at 19.1 billion shares.
The surge was led by two key sectors:
- Energy stocks: The S&P 500 energy index jumped 2.7% to its highest level since March 2025. This boost followed a US military move involving Venezuela, raising hopes for American oil firms to access the country's reserves. Shares of Exxon Mobil and Chevron climbed sharply.
- Financial shares: The S&P 500 financials index rose 2.2%. Giants like Goldman Sachs and JPMorgan Chase each gained over 3%, hitting record highs as investors anticipated strong quarterly earnings.
Defense stocks also advanced, pushing the aerospace and defense index to a record. Tesla shares rose 3.1%, ending a seven-day losing streak, while Apple fell 1.4% and Nvidia slipped 0.4%.
The Stakes of the Supreme Court Decision
Trump's tariff policy includes baseline duties on most imports and higher "reciprocal" tariffs targeting nations with large trade surpluses with the US. He argues these measures are essential to protect American industries, shrink trade deficits, and bolster national security. However, the legal opposition contends that the power to impose such broad tariffs is constitutionally reserved for Congress, not the presidency.
By asking his followers to "pray" for a favourable Supreme Court ruling, Trump has underscored the high-stakes nature of this appeal. The Court's decision will not only determine the fate of his current tariff structure but could also set a lasting precedent on the scope of presidential power in international trade and economic policy.
