Mid-Morning Look: February 20, 2026

Market Overview

U.S. stocks opened with mixed results on February 20, 2026, as investors processed significant economic data and a pivotal Supreme Court ruling regarding tariffs. The major indices showed positive movement, with the DJ Industrials up 0.40%, S&P 500 up 0.50%, Nasdaq up 0.67%, and Russell 2000 up 0.18%.

Supreme Court Ruling on Tariffs

The U.S. Supreme Court ruled 6-3 to invalidate President Trump's tariffs, which were imposed under the International Emergency Economic Powers Act (IEEPA). This decision has far-reaching implications for the global economy, particularly benefiting companies adversely affected by these tariffs, such as major retailers and logistics firms. Following the ruling, shares in these sectors saw a notable increase, with the Dow Jones Transportation Average initially rising by 1.7%.

Economic Data Highlights

• Personal Consumption Expenditures (PCE): December PCE inflation rose by 0.4%, exceeding the 0.3% consensus.
• Gross Domestic Product (GDP): Q4 GDP growth was reported at 1.4%, significantly below the expected 3.0% and down from 4.4% in the previous quarter.
• Consumer Spending: Advance Q4 consumer spending increased by 2.4%, below the consensus of 2.6%.
• Inflation Metrics: The GDP deflator rose by 3.7%, above the expected 2.9%, indicating higher inflation pressures.

Market Reactions

The dollar index (DXY) fell following the Supreme Court's decision, ending a five-day winning streak. Precious metals prices increased, and oil prices remained near six-month highs amid ongoing concerns regarding Iran.

Sector Performance

Gainers

• Celsius Holdings (CELH): Shares rose 8% after positive commentary on its growth strategy.
• Open Door Technologies (OPEN): Stock surged 13% after reporting a smaller-than-expected loss.
• RingCentral (RNG): Shares jumped 29% following strong quarterly results.
• Tandem Diabetes (TNDM): Stock increased 25% due to exceeding revenue expectations.

Losers

• Akamai Technologies (AKAM): Shares fell 10% due to a lower profit forecast despite a revenue beat.
• Ardelyx (ARDX): Stock dropped 10% after reporting a wider quarterly loss.
• Calumet Specialty Products (CC): Shares decreased 14% following a revenue decline.
• CoreCivic (CXW): Stock fell 10% amid reports of reduced government contracts.

Conclusion

The market's reaction to the Supreme Court ruling and economic data reflects a complex interplay of investor sentiment and economic indicators. While some sectors benefited from the tariff ruling, others faced challenges from disappointing earnings and forecasts. The upcoming weeks will be crucial as investors continue to assess the implications of these developments.