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 to an annual rate of 1.4% in Q4, down from 4.4% in Q3, primarily due to reduced government spending and exports. Homebuilder confidence fell, with the NAHB index dropping to 36, while pending home sales decreased by 0.8% in January. However, housing starts rose by 3.9% in November and 6.2% in December.
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. Despite a decline in Eurozone industrial production, the PMI for February showed positive signs with new orders rising significantly.
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 Sanae Takaichi pledged to pursue responsible fiscal policies amidst these challenges.
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 the need for a shift to consumption-led growth. Additionally, the government raised the VAT rate on telecommunications, impacting major telecom providers.
Other Key Markets
In Romania, the central bank maintained its benchmark rate at 6.50%, while in Peru, political instability continued as Congress removed President José Jeri, appointing an interim leader ahead of upcoming elections.
Conclusion
This week's market movements reflect a complex interplay of economic data, geopolitical tensions, and policy decisions across major global economies. Investors remain cautious as they navigate these developments.