Supreme Court Overturns Tariff Order, Dollar Slides as Gold and Silver Rally

Market Overview

Markets were once again swept by AI-driven “panic trading” and renewed policy uncertainty.

Anthropic‘s newly released tool, Claude Code, is reportedly capable of efficiently rewriting legacy COBOL code, posing a direct threat to IBM’s core mainframe business. The market reaction was swift and severe. IBM plunged 13%, marking its largest single-day decline since 2000.

Selling pressure quickly spilled across the broader technology complex. Cybersecurity and software development names were hit particularly hard, with CrowdStrike tumbling 10%. The Nasdaq Composite closed down approximately 1%.

Financials also endured significant losses, falling more than 3% and leading the S&P 500 lower. American Express dropped over 7%, while alternative asset manager KKR slid nearly 9% amid reports that an activist hedge fund had initiated short positions targeting its credit funds. Liquidity concerns in the private credit space further pressured Blue Owl, which declined more than 3%.

In healthcare, Novo Nordisk fell sharply by 16% after clinical trial data showed its weight-loss drug delivered weaker-than-expected results compared with Eli Lillys competing treatment.

Macro & FX Developments

On the macro front, the U.S. Supreme Court ruled that former President Trumps use of the International Emergency Economic Powers Act (IEEPA) to impose certain tariffs was unlawful. The decision significantly altered tariff expectations and introduced fresh policy recalibration across markets.

The U.S. dollar weakened in response, marking a second consecutive session of declines. Offshore yuan strengthened aggressively, breaking below the 6.89 level intraday and approaching its strongest level in nearly three years.

Safe-haven flows accelerated into Treasuries, pushing the 10-year yield lower and toward its three-month lows.

Commodities & CryptoPrecious Metals: A “Revenge Rally”

Amid dollar weakness and rising risk aversion, precious metals staged a powerful rebound.

• Gold futures surged more than 3%, while spot gold climbed to a fresh monthly high.

• Silver outperformed, with intraday gains approaching 8% at one point.

The rally reflects a combination of technical positioning, macro hedging, and renewed dollar downside momentum.

Energy & Digital Assets

Crude oil initially touched a six-month high during the session on geopolitical tensions but later reversed lower on renewed demand concerns. Brent crude ultimately snapped its multi-session winning streak.

Cryptocurrencies traded under pressure. Bitcoin fell below $64,000, retreating more than 5% from its intraday high.

Chart References

Chart 1: IBM Shares Post Largest Single-Day Drop Since 2000

(Source: Market data)

Chart 2: Precious Metals Surge as Dollar Weakens

(Source: Market data)

Key Developments AheadU.S. Customs to Halt Tariff Collection Beginning February 24

U.S. Customs and Border Protection announced via its Cargo Systems Messaging Service that tariffs previously imposed under the IEEPA framework will cease to apply.

Goods entering U.S. consumption channels or withdrawn from warehouses for consumption beginning February 24 (Eastern Time) will no longer be subject to these specific tariffs.

The agency clarified that the suspension does not affect any other tariffs imposed by the Trump administration.

Federal Reserve Governor Waller Issues Caution

Governor Christopher Waller welcomed Januarys strong employment data but warned that the report may contain “more noise than signal.”

He highlighted that revisions indicate net job creation in 2025 is near zero, underscoring potential labor market fragility beneath the surface.

Whether he would support a rate cut at the next FOMC meeting, Waller stated, will depend heavily on forthcoming labor market data.

What to Watch (GMT+8)

22:00 ET

December FHFA House Price Index (MoM)

December S&P/Case-Shiller 20-City Home Price Index (YoY, NSA)

22:10 ET

Federal Reserve Governor Waller speaks

22:35 ET

Federal Reserve Governor Lisa Cook delivers remarks on artificial intelligence

23:00 ET

December Wholesale Sales (MoM)

February Conference Board Consumer Confidence Index

February Richmond Fed Manufacturing Index

Overnight

01:00 ET

Federal Reserve Vice Chair Philip Jefferson speaks on the economic outlook and supply-side inflation dynamics