ARK Invest CEO Cathie Wood has characterized the market response to the Supreme Court’s invalidation of federal tariffs as a “yawn,” predicting that the removal of these trade barriers will serve as a significant catalyst for U.S. economic growth. Wood’s comments come as investors process the implications of the landmark ruling on tariff policy and its potential impact on inflation and GDP expansion.
Despite the dramatic 6-3 Supreme Court ruling that struck down President Donald Trump’s emergency-law tariffs, equity markets remained remarkably stable. Wood noted that the financial world had largely anticipated the judicial check on executive power, with the initial volatility attributed to high-frequency trading algorithms rather than fundamental market shifts.
Tariff Removal Expected to Accelerate Economic Growth
Wood remains steadfast in her view that the invalidated duties were essentially a burden on American consumers and the corporate sector. According to the ARK Invest founder, removing these barriers should reverse the recent economic cooling and stimulate expansion in the coming months.
“We’ve called tariffs tax increases. I don’t like tax increases. Most people don’t like tax increases,” Wood stated. She argued that the Supreme Court ruling effectively acts as a tax cut, which should accelerate growth across various sectors of the economy.
Economic Indicators Support Tariff Policy Reversal
Wood pointed to the disappointing 1.4% real GDP growth in the fourth quarter as evidence that the tariff regime had failed to improve the trade deficit. Instead, according to Wood, these policies created economic distortions that hampered rather than helped domestic economic performance.
Additionally, the ARK Invest CEO emphasized that aggressive growth portfolios experienced only a minor setback in defense technology stocks following the ruling. The broader market remained largely unfazed by the judicial decision, suggesting that investors had already priced in the possibility of tariff removal.
Inflation Outlook Improves Following Court Decision
A central pillar of Wood’s economic outlook is the continued collapse of inflationary pressures. With tariffs being struck down, Wood believes the United States could see headline inflation drop toward zero or even enter negative territory within the next three to six months.
“The true inflation number is lower than 1% now,” Wood claimed, citing ARK’s internal monitoring of 10,000 consumer prices. She dismissed President Trump’s subsequent discussion of implementing a 10% to 15% across-the-board tariff as a negotiating tactic rather than a looming economic reality.
However, Wood acknowledged that the removal of tariffs on consumer goods and industrial inputs would provide immediate relief to businesses facing margin pressures. This relief, combined with lower input costs, should translate into improved corporate profitability and potentially lower consumer prices across multiple categories.
Market Performance Reflects Investor Confidence
Meanwhile, major stock indices have shown mixed performance year-to-date despite the tariff uncertainty. As of Friday’s close, the Dow Jones index rose 2.57% in 2026, while the S&P 500 gained 0.74%. In contrast, the Nasdaq Composite index declined 1.50% during the same period.
The relatively muted market reaction to the Supreme Court decision suggests that investors had already adjusted their portfolios in anticipation of potential tariff policy changes. Wood’s characterization of the market response as a “yawn” reflects this forward-looking positioning by institutional and retail investors alike.
The full economic impact of the tariff removal will become clearer in the coming months as companies adjust their supply chains and pricing strategies. Authorities have not confirmed a timeline for when the economic benefits of lower trade barriers might materialize in official GDP statistics.
