Market Summary - Week of February 23, 2026
Overview
The week ending February 22, 2026, saw significant movements in global markets driven by various economic and geopolitical factors. The US Supreme Court's ruling against reciprocal tariffs improved market sentiment, while tensions in the Middle East influenced commodity prices, particularly crude oil and gold.
Key Events from Last Week
- Tariff Ruling: The US Supreme Court deemed certain tariff policies unlawful, positively impacting technology and consumer sectors. Despite this, former President Trump announced plans for a 15% global tariff through alternative means.
- US-Iran Tensions: Brent crude oil prices surged above $72 per barrel amid increased US military presence in the Gulf and Iranian naval drills with Russia, raising concerns over potential disruptions in oil supply.
- Japan's Inflation: Japan's inflation rate fell below 2% for the first time in 44 months, leading to a cautious outlook on interest rate hikes.
- Australia's Labor Market: Australia's unemployment rate remained steady at 4.1%, with the Reserve Bank of Australia adopting a hawkish stance on inflation.
Market Highlights
US Earnings Season
The US earnings season is nearing its conclusion, with over 75% of S&P 500 companies reporting a blended earnings growth of over 14%, significantly surpassing expectations. However, concerns about consumer spending were highlighted by Walmart's cautious guidance, which indicated a slowdown in hiring and rising financial pressures on lower-income households.
Crude Oil Prices
WTI crude oil prices reached a six-month high, driven by geopolitical tensions and an unexpected draw in US oil inventories. The market remains cautious due to a persistent global supply surplus, although technical indicators suggest a potential upward trend if prices maintain above key resistance levels.
Gold Prices
Gold prices regained the $5,000 per ounce mark, supported by safe-haven demand amid geopolitical uncertainties. Central bank purchases, particularly from China and Poland, continue to bolster gold's structural support.
Looking Ahead
The upcoming week will focus on inflation data from Australia and the US, as well as key corporate earnings reports, including Nvidia and Berkshire Hathaway. Investors will be particularly attentive to inflation trends that could influence monetary policy decisions in both regions.
Key Economic Events
- Australia CPI (January): Expected to provide insights into inflation trends ahead of the RBA's next meeting.
- US PPI (January): Will be assessed for signs of upstream cost pressures affecting consumer prices.
Corporate Earnings to Watch
- Nvidia - Anticipated to report on AI infrastructure demand.
- Berkshire Hathaway - Will include insights from new CEO Greg Abel.
- HSBC - Kicking off Hong Kong's earnings season.