What Happened?
A number of stocks jumped in the afternoon session after the U.S. Supreme Court struck down the Trump administration's sweeping global tariffs.
The landmark 6-3 decision sent a wave of relief through the markets, with the S&P 500 and Dow Jones Industrial Average both climbing on the news. The court found that the administration inappropriately used emergency powers to bypass Congress in imposing the levies. These tariffs had placed a significant strain on corporate balance sheets, and many businesses now welcome the prospect of potential refunds.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Hardware & Infrastructure company Dell (NYSE: DELL) jumped 2.6%. Is now the time to buy Dell? Access our full analysis report here, it’s free.
- Advertising & Marketing Services company Omnicom Group (NYSE: OMC) jumped 2.5%. Is now the time to buy Omnicom Group? Access our full analysis report here, it’s free.
- Digital Media & Content Platforms company Ziff Davis (NASDAQ: ZD) jumped 4.3%. Is now the time to buy Ziff Davis? Access our full analysis report here, it’s free.
Zooming In On Ziff Davis (ZD)
Ziff Davis’s shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 10.1% on the news that the major indices popped (Nasdaq +3.4%, S&P 500 +2.5%) in response to the positive outcome of U.S.-China trade negotiations, as both sides agreed to pause some tariffs for 90 days, signaling a potential turning point in ongoing tensions.
This rollback cuts U.S. tariffs on Chinese goods to 30% and Chinese tariffs on U.S. imports to 10%, giving companies breathing room to reset inventories and supply chains. However, President Trump clarified that tariffs could go "substantially higher" if a full deal with China wasn't reached during the 90-day pause, but not all the way back to the previous levels. Still, the agreement has cooled fears of a prolonged trade war, helping stabilize expectations for global growth and trade flows and fueling renewed optimism. The optimism appeared concentrated in key trade-sensitive sectors, particularly technology, retail, and industrials, as lower tariffs reduce cost pressures and restore cross-border demand.
Ziff Davis is down 7.6% since the beginning of the year, and at $31.42 per share, it is trading 37% below its 52-week high of $49.89 from February 2025. Investors who bought $1,000 worth of Ziff Davis’s shares 5 years ago would now be looking at an investment worth $288.10.
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