As of late February 2026, global financial markets are navigating a complex landscape of legal shifts and high-stakes corporate reporting. Regional indices in Asia have recently traded mostly lower, with Japan’s Nikkei 225 sliding **1.3%** and Australia’s S&P/ASX 200 dipping **0.15%**. The U.S. dollar index remains firm near recent highs, though it faces long-term pressure from shifting trade policies. Investor sentiment is currently caught between cooling domestic growth—with the flash U.S. Composite PMI falling to **52.3**—and a significant judicial pivot regarding international trade. The Tariff Reset A landmark Supreme Court ruling on February 20, 2026, invalidated the use of the International Emergency Economic Powers Act for broad tariff imposition. This decision effectively struck down several 2025 trade barriers that had increased the average tax burden per U.S. household by roughly **$1,000**. The administration has quickly pivoted, proposing new **10%** to **15%** tariffs under Section 122. While this creates a temporary reprieve for Asian exporters, the weighted average applied tariff rate is still projected to sit at **6.7%** for the year, the highest since the 1970s. Tech and Energy Volatility The technology sector is braced for Nvidia’s fiscal fourth-quarter earnings report on February 25. Analysts expect revenue to hit **$65.6 billion**, a **65%** year-over-year increase. Despite recent "underwhelming" price action, the stock remains the primary anchor for the Nasdaq, which recently gained **0.8%** on the back of new AI infrastructure partnerships. In the commodities space, energy markets are balancing geopolitical risk with diplomatic efforts. Brent crude futures are hovering near **$67.50**, while WTI crude remains around **$62.38**. Prices have eased slightly as negotiators in Geneva move forward with U.S.-Iran talks. However, the market remains sensitive to "war premiums"; estimates suggest that a total disruption of Iranian exports could spike Brent prices to an average of **$91** per barrel by the end of 2026. Economic Outlook The U.S. economy continues to show resilience but is signaling a transition phase. While the Federal Reserve has held interest rates steady at a target range of **3.25%–3.50%**, market participants are pricing in an additional **50 to 75 basis point** cut by the end of the year. The labor market is cooling as intended, with payroll growth decelerating. This is expected to push the unemployment rate toward the **mid-4%** range in early 2026, even as consumer spending remains stable due to high asset prices and recent tax adjustments.