Global Markets Weekly Update

Date: February 20, 2026

U.S. Market Overview

The U.S. stock markets finished higher this week, buoyed by the Supreme Court's ruling against the Trump administration's global tariffs. The Nasdaq Composite led the gains with a 1.51% increase, marking its first weekly gain since early January. The S&P 500 and S&P MidCap 400 also saw gains over 1%, while the Dow Jones Industrial Average lagged with a modest 0.25% increase.

Federal Reserve Insights

Minutes from the Federal Reserve's January meeting revealed divisions among policymakers regarding future monetary policy, with some advocating for easing if inflation cools, while others suggested potential rate hikes if inflation remains high. The core PCE inflation index rose to 3.0% year-over-year, indicating persistent inflationary pressures.

Economic Growth and Housing Market

U.S. economic growth decelerated sharply in Q4 2025, with an annual growth rate of 1.4%. The housing market showed mixed signals, with homebuilder confidence declining and pending home sales slipping, although housing starts increased significantly.

Bond Market Performance

High yield bonds outperformed Treasuries amid a strong equity market, while Treasuries faced negative returns as investors reacted to economic data and Fed minutes.

European Market Highlights

The STOXX Europe 600 Index reached a new high with a 2.08% gain, driven by improved earnings expectations and macroeconomic data. However, Eurozone industrial production fell 1.4% in December, and German economic confidence unexpectedly declined.

Japan's Economic Situation

Japan's stock markets experienced slight declines, with the Nikkei 225 down 0.20%. The economy grew less than expected in Q4, and consumer inflation rose at the slowest pace in two years. Prime Minister Takaichi pledged a responsible fiscal policy to reassure investors.

China's Economic Outlook

China's markets were closed for the Lunar New Year, but the IMF projected a 4.5% growth for 2026, emphasizing a shift towards consumption-led growth. Additionally, the government raised the VAT rate on telecommunications services amid slower economic growth.

Other Key Markets

In Romania, the central bank maintained its benchmark rate, while in Peru, political instability continued as Congress removed President Jeri, appointing an interim leader ahead of upcoming elections.

Disclaimer: This summary is for informational purposes only and does not constitute investment advice.