Market Analysis Summary: Nasdaq Dominates as Tariffs Get Cancelled

Author: Elior Manier

Date: February 20, 2026

Overview

The US stock benchmarks have shown muted reactions following the recent announcement regarding the cancellation of tariffs, with the technology sector, particularly the Nasdaq, experiencing a strong rally. The market is currently navigating through uncertainties as traders assess the implications of this decision ahead of a significant risk weekend.

Key Developments

The US Supreme Court's decision to strike down tariffs, which had been a significant concern for the markets over the past 15 months, has raised questions about the future economic landscape. The previous administration's reliance on tariffs for revenue generation has left a potential funding gap, prompting market participants to closely monitor the government's response.

The President has publicly criticized the ruling, labeling it a "disgrace," and indicated that a backup plan is in place. This uncertainty is expected to lead American firms to expedite inventory replenishment, potentially resulting in a significant decrease in the trade deficit in the coming months, which could adversely affect GDP expectations.

Market Reactions

Despite some negative economic data, including disappointing ISM Services and Manufacturing reports, the Nasdaq has emerged as a leader among US benchmarks. The technology sector is poised to benefit from reduced import duties, although some profit-taking is anticipated as the day progresses.

Technical Analysis

Dow Jones

The Dow Jones has struggled to gain momentum, currently trading near its pivot zone of 49,500. A close above this level is crucial for bullish prospects, while a failure to do so may lead to further declines.

Nasdaq

The Nasdaq is attempting to break through its pivot zone, with key resistance levels identified between 25,000 and 25,250. A confirmed breakout above these levels could signal a bullish trend.

S&P 500

The S&P 500 has rebounded from a bearish outlook, now trading above 6,900. A close above this level could pave the way for a test of all-time highs, with the 2H 200-MA acting as a significant resistance point.

Conclusion

As the market adjusts to the implications of the tariff cancellation, volatility is expected to persist. Traders are advised to remain vigilant, particularly regarding geopolitical developments, such as tensions in Iran, which could further influence market dynamics.

Current Market Data

Asset	Price	Change
EUR/USD	1.17800	+0.07%
GBP/USD	1.34908	+0.20%
USD/JPY	155.043	+0.02%
Gold	5072.885	+1.53%
Silver	82.84840	+5.47%
West Texas Oil	66.678	-0.22%
Natural Gas	3.366	+4.62%
US SPX 500	6893.5	+0.48%
US Nasdaq 100	24972.4	+0.76%
US Wall St 30	49436.0	+0.13%