Market Wrap Summary - February 20, 2026
By Elior Manier
Overview
On February 20, 2026, the US Supreme Court officially struck down the controversial Trump tariffs, leading to significant market reactions. Despite the groundbreaking news, the weekly close was surprisingly calm.
Market Reactions
Initially, the markets reacted pessimistically to the announcement of tariffs, which had caused confusion and anxiety. However, following the Supreme Court's decision, stock benchmarks rallied as Wall Street anticipated minimal changes to the global economic landscape. The prevailing sentiment was that the tariffs would create more noise than substantive shifts in global trade.
Impact on Trade
In the wake of the tariff decision, there was a surge in TACO trading, with countries rushing to establish trade agreements with the US. However, these tariffs had previously contributed to resilient inflation, affecting consumer behavior and global supply chains.
Trump's administration had previously attempted to impose temporary levies, which were met with legal challenges, culminating in the Supreme Court's ruling.
Commodity Performance
Gold and silver emerged as the clear winners from the tariff news, with gold closing above $5,100 and silver surpassing $84. This performance was attributed to increased demand for precious metals amid geopolitical uncertainties.
Stock Market Insights
US stocks showed a positive reaction to the Supreme Court's announcement, particularly among major importers like Amazon, Meta, and Google. These companies are expected to benefit from the tariff changes. However, the overall market reaction remained contained, indicating a cautious approach from investors.
Currency Movements
The US Dollar experienced a slight retracement but remained near its highs. Market participants are advised to monitor the Dollar Index closely in the upcoming week, as it is expected to lead market flows.
Looking Ahead
Traders should mark the week of July 20th on their calendars, as further developments regarding tariffs and international trade are anticipated. Additionally, geopolitical tensions in the Middle East may influence market dynamics over the weekend.
Conclusion
The market's response to the Supreme Court's decision on tariffs indicates a complex interplay of optimism and caution. As traders prepare for the upcoming week, close attention to economic data and international developments will be crucial.