Constitutional Crisis and Market Implications: What Would Happen if Trump’s Defiance of Court Orders Escalates?

https://www.axios.com/2025/04/15/trump-defy-court-orders-contempt-constitutional-crisis

the Trump administration appears to be defying Supreme Court orders regarding the return of Kilmar Armando Abrego Garcia from El Salvador, with legal scholars warning this could trigger a constitutional crisis. The administration claims they’re compliant while arguing courts lack authority to compel action from a foreign nation.
I’m concerned about how markets might react if this standoff between branches escalates further. Historical examples suggest markets dislike institutional uncertainty, but the specific dynamics here seem unprecedented.

Some questions I’m considering:

Which market sectors would be most vulnerable in a full-blown constitutional crisis?

How might international investors view US assets if our institutional stability comes into question?

Are there historical parallels (either US or international) where constitutional crises impacted markets?

Is the market underpricing institutional risk?