Market Review: February 20, 2026
Closing Recap
| Index | Up/Down | % Change | Last |
|---|---|---|---|
| DJ Industrials | +230.81 | 0.47% | 49,625 |
| S&P 500 | +47.61 | 0.69% | 6,909 |
| Nasdaq | +203.34 | 0.90% | 22,886 |
| Russell 2000 | -1.31 | 0.05% | 2,663 |
Market Overview
On February 20, 2026, US equity futures remained flat overnight, with oil prices also stable. Gold prices increased by approximately 1%. The release of the Personal Consumption Expenditures (PCE) data showed a slight increase, leading to a minor retreat in equities, as the quarterly GDP advance was lower than expected at 1.4% compared to the anticipated 2.8%. However, the market rebounded after the University of Michigan's inflation numbers came in lower than expected, and a significant Supreme Court ruling against former President Trump's global tariffs was announced.
Supreme Court Ruling on Tariffs
The U.S. Supreme Court ruled 6-3 against Trump's tariffs, stating that the imposition of tariffs is a taxing power that only Congress can exercise. This ruling has significant implications for the global economy and was a response to a legal challenge from businesses and several states. The decision is expected to influence future trade policies and economic conditions.
Economic Data Highlights
- Core PCE rose by 3.0%, slightly above expectations, marking the highest reading since November 2003.
- Q4 GDP growth was reported at 1.4%, significantly below the consensus of 3.0%.
- Consumer spending increased by 2.4%, while the advance Q4 GDP deflator was reported at 3.7%.
- University of Michigan's consumer sentiment index showed a slight decline, indicating consumer concerns about inflation.
Sector Performance
In the market, sectors showed varied performance:
- Communications, Industrials, and Consumer Discretionary sectors outperformed, while Materials, Energy, and Health Care sectors lagged.
- Retailers benefited from the tariff ruling, with stocks like LULU and TGT seeing gains.
- In the energy sector, crude oil prices remained stable despite geopolitical tensions.
Commodities and Currencies
Gold futures rose significantly, closing at $5,080.90 per ounce, driven by market uncertainty and safe-haven demand. Crude oil prices showed slight gains, with WTI crude settling at $66.48 per barrel.
Conclusion
The market's reaction to economic data and the Supreme Court ruling indicates a complex interplay of factors influencing investor sentiment. While some sectors thrived, others faced challenges, reflecting the ongoing volatility in the economic landscape.