The stock market rebounded last week as Wall Street bounced around with both positive and worrying headlines. The Nasdaq on Friday snapped a five-week losing streak, helped by gains from big tech companies like Metaplatform, Nvidia and Amazon. Tech stocks ended the week up 1.9%. The S&P 500 rose 1.1% in the holiday-shortened week, ending a two-week decline. The Supreme Court’s ruling Friday against President Donald Trump’s emergency tariffs helped boost stock prices for many consumer-facing companies burdened by high import costs. If not for the private credit worries stemming from Blue Owl Capital, which caused volatility in some financial stocks, the index could have climbed further this week. All of the bank stocks, at least for us, held their own and ended the week higher, led by Wells Fargo’s 2% gain. Goldman Sachs wasn’t far behind, rising 1.9%. Capital One added 0.5%. Let’s see if the rebound continues into Monday. In the meantime, here are three factors driving the stock market and our portfolio over the past four trading sessions. .SPX YTD Mountain S&P 500 (SPX) Year-to-date performance Supreme Court Tariff Decision The S&P 500 rose 0.7% on Friday after the Supreme Court struck down most of President Trump’s far-reaching tariff policies in a 6-3 decision. The high court held that no president had ever used the statute in question “to impose a tariff, much less a tariff of this size or scope.” To justify his “unusual” tariff powers, Trump would need to “demonstrate clear Congressional approval,” the majority wrote. “He can’t do it,” Trump fired back Friday afternoon, threatening to impose 10% tariffs worldwide. However, these new levies will only last for 150 days unless extended by further action by Congress. President Trump also posted about the additional tariffs on Truth Social on Saturday. A clearer picture will likely emerge when the president delivers his State of the Union address to Congress on Tuesday. However, the court’s ruling did not make it completely clear that investors should bid on stocks hit by tariffs. If you look at Nike, it was previously expected to have $1.5 billion in tariff headwinds this fiscal year. The stock initially rose following the court’s decision, but closed 0.3% lower as the market realized Mr. Trump would find another way to introduce a higher levy. Other consumer companies such as Costco, Procter & Gamble, TJX Companies, and Amazon are also affected by the ruling. Ahead of the court’s decision, the club explained how these tariffs will directly impact each company’s pricing, margin and inventory strategies. Big tech stocks are roaring back Mega-cap tech stocks are finally making a comeback. Meta announced Tuesday that it will use millions of Nvidia chips in its data centers. As a result, both companies’ names skyrocketed, reinforcing the narrative of relentless AI demand and a new wave of hyperscaler spending. Meta and Nvidia ended the week up 2.5% and 3.8%, respectively. Amazon shares also rose after a regulatory filing on Wednesday showed Bill Ackman’s Pershing Square significantly increased the fund’s positions in the fourth quarter. The e-commerce giant rose 5.6% this week, making it the best performer in our portfolio. Alphabet was a laggard among the group earlier this week as its stock continued its post-earnings downward trend. But the club claimed the decline was unwarranted and bought more shares in the AI leader. After one session, the stock rebounded and ended the week up 3%. In the same session, we reduced Corning’s position after a big run in 2026. Although the company isn’t a tech giant like some others, it has benefited from AI deals as its fiber optic cables play an increasingly important role in data centers. Corning was the second best-performing stock this week, rising 4.5%. Credit crisis? Private credit concerns surrounding Blue Owl Capital rippled through the financial sector last week. Shares fell nearly 6% on Thursday after the asset manager permanently restricted withdrawals from private debt funds for individual investors. Some on Wall Street have called the Blue Owl a “canary in the coal mine,” arguing that the rapidly growing private credit market, which has attracted billions of dollars in capital in recent years, may have problems behind the scenes. Shares of major private asset management companies such as Ares Management, Apollo Global, Blackstone and KKR were hit hard on Thursday. Ares and Blackstone fell again sharply on Friday, dropping 8% and 6.6%, respectively, ending the week as the two worst companies in the S&P 500 Financials sector. Apollo rose 1.2% on Friday, reversing some of its 5.6% drop in Thursday trading. Within our portfolio, BlackRock has some private credit exposure, but that is not a concern for us at this time. The market seems to agree. The stock was down just 1% on Thursday, but rebounded on Friday and ended the week up 2%. And more generally, Jim does not deny that bad loans exist within the private credit complex. However, he wrote Friday morning that he did not believe the situation was “inherently tragic” at this time. Capital One was the only club financial to trade last week, buying additional shares of the credit card issuer on Wednesday. Wednesday’s deal also included the sale of Danaher and Texas Roadhouse. We sold our restaurant shares completely on Friday after the previous night’s earnings call convinced us that the beef inflation problem wasn’t going away anytime soon. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
