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, with an annual growth rate of 1.4%. The housing market showed mixed signals, with homebuilder confidence slipping while housing starts increased significantly.
European Market Highlights
The pan-European STOXX Europe 600 Index reached a new high, gaining 2.08% due to improved earnings expectations and macroeconomic data. However, Eurozone industrial production fell 1.4% in December, and German economic confidence unexpectedly declined in February.
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 to pursue responsible fiscal policies.
China's Economic Outlook
China's financial markets were closed for the Lunar New Year, with the IMF projecting a 4.5% growth rate for 2026. The country is urged to transition to a consumption-led growth model. Additionally, a new VAT law raised the telecom VAT rate, impacting major telecom providers.
Other Key Markets
In Romania, the central bank maintained its benchmark rate amid easing inflation, while in Peru, political instability continued as Congress removed President Jeri, appointing an interim leader ahead of upcoming elections.
Conclusion
This week's market insights reflect a complex interplay of economic indicators, geopolitical tensions, and evolving monetary policies across major global markets.