US stocks rose on Friday after the Supreme Court ruled that President Trump's most sweeping "Liberation Day" tariffs are unlawful, saying he lacked the authority to impose them using emergency powers.

Trump had made tariffs the bedrock of his economic pitch to voters going into the midterm elections, even describing tariffs as his "favourite word in the dictionary".

"Their decision is incorrect," he said. "But it doesn’t matter because we have very powerful alternatives."