Daily Stock and Crypto Market Update: Traders Navigate Uncertainty as Tariff Ruling Looms

Bitcoin and Ethereum are displaying sharp declines as markets await critical policy decisions. BTC has dropped to $77.84K, down 1.47% over the past 24 hours, while Ethereum slipped to $2.30K with a steeper 6.22% decline. These moves reflect growing investor caution ahead of a potential Supreme Court decision on tariff authority scheduled for January 10. The broader stock market remains in holding pattern, with major indices waiting for the December jobs report and clarity on trade policy.

Bitcoin and Crypto Markets Brace for Supreme Court Tariff Decision

The cryptocurrency space is caught between competing dynamics. On one hand, prediction markets reveal investor skepticism about the administration’s tariff powers—Polymarket traders assign just a 24% probability the Supreme Court will uphold the use of emergency authorities for imposing duties under the International Emergency Economic Powers Act.

This legal uncertainty has shaped market behavior significantly. Stock futures on the Dow Jones, S&P 500, and Nasdaq 100 showed minimal movement as traders wait for the court’s position. Past tariff announcements have produced temporary but meaningful volatility in crypto, though historical data suggests these swings reflect short-term liquidations rather than fundamental exits from digital assets.

Jobs Report and Policy Uncertainty Shape Investor Sentiment

Friday’s employment data carries outsized importance given current macro conditions. Economists expect December payrolls to add approximately 70,000 new jobs, with unemployment potentially ticking down to 4.5%. This report arrives after previous data disruptions caused by federal government shutdowns affected October and November releases.

The jobs figure will influence Federal Reserve policy discussions happening in less than three weeks. How the central bank interprets labor market strength could reshape expectations around interest rate trajectories, creating ripple effects across both traditional equities and digital asset valuations.

Historical Pattern Recognition During Trade Policy Volatility

CoinDesk research documented the first quarter 2025 tariff period as a “Tariff Tantrum,” during which sharp but temporary price declines emerged from liquidation cascades and momentum-based selling rather than strategic capitulation. Trend-following traders who cut risk positions early navigated these episodes effectively.

Interactive Brokers economist Jose Torres told CNBC the administration would likely pursue policy workarounds if court constraints emerged. Such moves could push long-term U.S. Treasury yields higher and tighten global financial conditions—a dynamic Asian traders are watching closely alongside the court ruling itself.

Gold and Bond Markets Signal Rising Geopolitical Concerns

HSBC’s early 2026 gold forecast points to potential strength, with the bank predicting the precious metal could reach $5,050 per ounce if geopolitical tensions and rising government debt continue pressuring safe-haven demand. However, a pullback remains possible later in 2026 if the Federal Reserve adopts a more restrictive stance or risk sentiment improves.

Meanwhile, major U.S. stock indices are tracking higher for the first full week of 2026, with the S&P 500 up nearly 1% for the week, the Dow gaining about 1.8%, and the Nasdaq Composite adding 1.1%. The Trump administration also announced plans for federal government purchases of $200 billion in mortgage-backed securities, though details remain unclear.

Markets remain in a consolidation mode as investors weigh multiple competing forces. The coming days will clarify both policy direction and market appetite for risk assets across traditional and digital markets. This daily stock market update underscores how interconnected macro policy, employment data, and court decisions have become in shaping investor positioning.