Traders Should Hedge ‘Unexpected’ Tariff Ruling, Jefferies Says

Investors should consider hedging ahead of the Supreme Court’s ruling on tariffs, as “an unexpected decision” to allow some of the Trump administration’s most sweeping levies to stand would trigger volatility, according to strategists at Jefferies.

“A surprise ‘tariffs upheld’ ruling would likely jolt markets, since most have priced in relief,” the strategists, led by Aniket Shah, wrote in a Wednesday note.

Shah recommended investors consider tools such as put options or instruments linked to volatility “as prudent insurance.” Investing in sectors that are likely to keep getting a break from levies, such as food and other staples, could ...