U.S. stocks are edging higher in tentative trading after the Supreme Court struck down President Donald Trump’s sweeping tariffs, which had been a source of volatility for the market.

The S&P 500 was 0.37% higher at 10:28 a.m., a few minutes after the court announced its ruling.

It had been drifting between small gains and losses earlier in the morning, after discouraging reports showing slowing growth for the economy and faster inflation created relatively few ripples in the market.

The Dow Jones Industrial Average added 135.16 points, or 0.27%, and the Nasdaq composite rose 0.51%

Earlier, following a lackluster 1.4% GDP for the fourth quarter and a higher-than-expected inflation reading of 3%, Treasury yields were mixed in the bond market after the economic reports underscored the tricky situation the Federal Reserve may be facing. The Fed could lower rates to give the economy a boost, as it did last year, but that would risk worsening inflation.

The higher measure of inflation could convince Fed officials to stand pat on interest rates for the second time this year out of fear that a cut to rates would further fuel price increases.

A decision to leave rates where they are also could be bolstered by recent employment data — particularly the January jobs report — which has been stronger than expected.

As for the fourth-quarter gross domestic product, which reflects the nation’s output of goods and services, it came in at 1.4%. Analysts were expecting it to show that the economy grew anywhere from 1.9% to 3.5%.

Fed officials said at their last meeting that they want to see inflation fall further before they would support cutting rates further this year.

European shares were higher Friday at midday after a mixed day of trading in Asia, as worries over risks linked to massive investments in artificial intelligence and a potential U.S.-Iran conflict weighed on major benchmarks.

Germany's DAX rose 0.2% at midday, while the CAC 40 in Paris gained 0.8% and Britain's FTSE 100 picked up 0.5%.

Tokyo’s Nikkei 225 fell 1.1% to 56,825.70 as shares in major banks and other financial institutions skidded on worries over the potential impact of weakening private credit companies that have lent to companies exposed to the risk that AI will steal away their businesses.

That includes market heavyweights like Mitsubishi UFJ Financial Group, which has a partnership with Blue Owl Capital, one such private-credit company. MUFJ's shares dropped 2.2% in Tokyo after Blue Owl lost 5.9% on Thursday.

Toyota Motor Corp. futures fell 3.7% and Sony shed 3.2%.

In Hong Kong, the Hang Seng lost 1.1% to 26,413.35 as the market reopened following Lunar New Year holidays. Markets in mainland China and Taiwan remain closed until next week.

South Korea's Kospi jumped 2.3% to a new record of 5,808.53, however, led by major defense contractors like Hanwha Aerospace, whose shares soared 6.4%. The company is one of many benefiting from a ramp up in military spending in many countries.

Elsewhere in the region, Australia's S&P/ASX 200 edged 0.1% lower to 9,081.40.

In energy markets, oil prices eased a day after jumping to their highest level since early August, sparked by rising fears that the U.S. and Iran could be headed toward conflict.

Early Friday, U.S. benchmark crude shed early gains, falling 34 cents to $66.06 per barrel. Brent, the international standard, shed 36 cents to $71.30 per barrel.

The price of gold rose just less than 1% while silver gained 3.4%.

Bitcoin was steady, rising less than 1% to $67,513.