Market Rebounds After Tariff Ruling

On February 20, 2026, U.S. stock markets experienced a notable rebound following the Supreme Court's decision to strike down President Trump's "Liberation Day" tariffs. The S&P 500 (^GSPC) rose almost 0.7%, while the Dow Jones Industrial Average (^DJI) gained roughly 0.5%. The tech-heavy Nasdaq Composite (^IXIC) led gains, up nearly 0.9%. All three major averages posted weekly gains, signaling a positive shift in investor sentiment. finance.yahoo.com

The Supreme Court ruled that President Trump overstepped his authority by invoking the International Emergency Economic Powers Act to impose tariffs on several trading partners in April. This landmark decision invalidated the tariffs, which had been a source of uncertainty and volatility in the markets. Investors responded positively to the ruling, leading to a surge in stock prices across various sectors. finance.yahoo.com

In premarket trading, several companies reported significant movements. Chemours (CC) fell 9% after reporting a loss in its fourth-quarter earnings and a dip in revenue, driven by a drop in its titanium technologies and advanced performance materials businesses. Conversely, Live Nation (LYV) stock rose more than 3% following an 11% increase in fourth-quarter revenue to $6.31 billion, driven by a 12% gain in concert sales. AppLovin's (APP) stock jumped 5% after the release of its fourth-quarter earnings and the company's plan to launch a social networking platform. finance.yahoo.com

The rally in the Nasdaq Composite was particularly noteworthy, as it led the gains among the major indices. This surge was driven by strong performances in technology stocks, with companies like Apple (AAPL) and Nvidia (NVDA) contributing significantly to the index's rise. Apple's shares gained more than 3% over optimism that the iPhone maker is ramping up development of wearable devices with AI capabilities. Nvidia's partnership with Meta Platforms (META) to deploy Nvidia's Grace CPU-only servers in Meta's data centers also bolstered investor confidence in the tech sector. sg.finance.yahoo.com

The positive market sentiment was also reflected in the performance of major exchange-traded funds (ETFs). The State Street SPDR S&P 500 ETF Trust (SPY) closed at $689.43, up 0.71% from the previous close. The SPDR Dow Jones Industrial Average ETF (DIA) ended the day at $496.08, a 0.36% increase. The Invesco QQQ Trust Series 1 (QQQ), which tracks the Nasdaq-100 Index, rose to $608.81, up 0.87%. These movements indicate a broad-based rally across the market, with technology stocks playing a pivotal role.

Despite the positive market performance, investors remained cautious due to ongoing geopolitical tensions and concerns about inflation. The Federal Reserve's preferred gauge of inflation, the "core" personal expenditures index, rose more than expected in December, both on a monthly and annual basis. This development has led to speculation about potential interest rate adjustments in the near future. Additionally, tensions between the U.S. and Iran have contributed to market volatility, with investors closely monitoring the situation for any developments that could impact global markets. finance.yahoo.com

In conclusion, the stock market's performance on February 20, 2026, was largely influenced by the Supreme Court's decision to invalidate the "Liberation Day" tariffs, leading to a surge in investor confidence. While the market showed resilience, ongoing concerns about inflation and geopolitical tensions suggest that investors should remain vigilant and stay informed about global events that could impact market dynamics.