New York, Feb 20, 2026, 16:01 EST — Trading after the bell.
- The Dow added 233 points after the U.S. Supreme Court tossed out Trump’s sweeping global tariffs.
- New GDP figures showed growth easing off, while the latest PCE inflation data underscored that price pressures haven’t let up.
- Nvidia’s earnings land Feb. 25, drawing attention, with inflation data lined up for next week.
The Dow Jones Industrial Average climbed 233.01 points, finishing at 49,628.56, up 0.47% on Friday, after the U.S. Supreme Court ruled against President Donald Trump’s global tariffs. The S&P 500 advanced 0.71%, while the Nasdaq Composite tacked on 0.91%. CME’s FedWatch tool still pegged the odds of a Federal Reserve rate cut by June just above 50%. “Today is a removal of some uncertainty, and we’re on to the next phase,” said Mike Dickson, head of research and quantitative strategies at Horizon Investments, noting that investors were relieved Trump’s substitute tariff wasn’t steeper. (Reuters)
The decision stripped away tariffs put in place using an emergency statute, sending investors back to square one: what tools does Washington even have left on trade? Trump, speaking to reporters, vowed to slap a flat 10% tariff using Section 122 of the 1974 Trade Act—a move that would allow up to 15% tariffs for a 150-day window. He also didn’t hold back on the court: “I’m ashamed of certain members of the court,” Trump said. (Reuters)
Timing turns crucial here, with the economy losing steam and investors watching to see how long the Fed holds its ground. U.S. GDP expanded by just 1.4% in the fourth quarter—short of forecasts—after the 43-day government shutdown last year dragged on federal spending. “The core of the economy is resilient,” said Michael Pearce, chief U.S. economist at Oxford Economics, but he still sees the Fed staying put. (Reuters)
Inflation still limited the Fed’s options. Core PCE—the central bank’s go-to inflation measure, which excludes food and energy—was up 0.4% in December and 3.0% from a year earlier, topping forecasts. Barclays economist Pooja Sriram called it “a very volatile category,” highlighting higher legal-services costs that may influence January numbers. Markets are watching the producer price index, expected Feb. 27, with January PCE on deck for March 13. (Reuters)
The Dow tracks 30 big-name U.S. stocks and gets used as a quick read on how corporate America reacts to policy jolts. Transportation and utilities don’t make the cut in this index; every other sector does. (S&P Global)
Thursday’s caution faded a bit after the move. The Dow, which had dropped 267.50 points, or 0.54%, to 49,395.16, reacted to a mix of economic numbers and a gloomy forecast from Walmart. Oil prices, meanwhile, touched their highest level in six months as markets eyed possible U.S.-Iran tensions. “Today (investors are) weighing some of the economic data and what Walmart’s earnings are saying in terms of the consumer,” said Chuck Carlson, CEO of Horizon Investment Services. (Reuters)
Tariffs have moved off the front page and onto the balance sheet. The Supreme Court left out instructions for refunding about $175 billion in duties. Trump put it bluntly: “we’ll end up being in court for the next five years.” Now, with the case heading back to the U.S. Court of International Trade, importers are eyeing lawsuits and making claims. (Reuters)
The market’s top-heavy trade faces another test next week, with Nvidia set to release its fiscal fourth-quarter numbers Wednesday. LSEG data shows analysts looking for a 71% jump in earnings per share, and revenue hitting $65.9 billion. “It’s hard for Nvidia to surprise when everyone expects it to surprise,” said Marta Norton, chief investment strategist at Empower. Investors will also be watching results from Salesforce, Intuit, Dell, along with Home Depot, Lowe’s, and Trump’s State of the Union address on Tuesday. (Reuters)
The picture on policy still looks murky. If the White House rolls out stricter tariffs, or if refunds drag on, or another rate cut slips further off the table, that could sap the risk rally and put the Dow right back in its old rut.
Nvidia’s Feb. 25 earnings report lands first, with traders looking for any hints on AI spending trends. Next up, the producer price index arrives Feb. 27, followed by the January PCE data dropping March 13. Both inflation readings could shape expectations for the Fed’s next moves.
