Market Analysis Summary: Stocks Drop from Tariff Uncertainty
Author: Elior Manier
Date: February 23, 2026
Key Highlights
- US stock benchmarks are experiencing a downturn due to ongoing tariff uncertainties.
- The Dow Jones, Nasdaq, and S&P 500 are all facing critical tests this week.
- President Trump has introduced a temporary tariff framework under Section 122 after previous tariffs were invalidated by the Supreme Court.
- Concerns arise over the potential refund of $133 billion in levies collected on imports, which could impact the budget significantly.
- China and European nations have expressed dissatisfaction with the new tariffs, further affecting market sentiment.
- All major US indices are down over 1%, with the Dow Jones leading the decline.
Market Overview
The week began with a soft opening for US stocks, reversing gains made on Friday. Despite no escalation in geopolitical tensions over the weekend, the market remains cautious, particularly with WTI crude oil prices around $66 per barrel, indicating a lack of confidence in a peaceful resolution to ongoing conflicts.
Tariff Developments
President Trump's new tariff framework, which is a 150-day measure, has been criticized for being outdated and disconnected from current economic realities. The legal challenges expected ahead of the July 20 deadline could complicate the situation further. Businesses have voiced their frustrations, and international pushback is growing, particularly from China and European officials.
Technical Analysis
Technical analysis of the major US indices reveals significant bearish momentum:
- Dow Jones: Currently trading below the 50-Day Moving Average, with resistance levels identified between 49,000 and 50,000. Key support is at 48,600.
- Nasdaq: Holding above critical support at 24,500-24,600, but facing downward pressure. Resistance levels are noted at 25,000-25,250.
- S&P 500: Experiencing a bearish channel formation, with immediate support at 6,800 and resistance at previous all-time highs around 7,020.
Conclusion
As the week progresses, traders are advised to monitor the developments surrounding US-Iran relations and the ongoing tariff situation closely. The current market sentiment is cautious, and further declines may be expected if key support levels are breached.
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