Wall Street delivered a split verdict Friday after the Supreme Court struck down President Donald Trump's global tariffs, pressuring U.S. small caps while lifting internationally exposed equities and emerging markets to fresh highs.

The Russell 2000 fell 0.4%, lagging the broader market, while the tech-heavy, globally oriented Nasdaq 100 gained 0.5%.

In a historic decision, the Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs, grounding its reasoning in separation-of-powers principles.

"The Framers gave ‘Congress alone' the power to impose tariffs during peacetime," the Court wrote. "The whole power of taxation rests with Congress."

The justices did not address whether the administration must refund more than $130 billion in tariffs already collected under the emergency declarations.

Investors interpreted the ruling as a relative negative for domestically focused small- and mid-cap companies. Many small-cap firms had benefited from elevated import duties that shielded them from foreign competition.

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