Market Brief: U.S. Equities Rally on Supreme Court Ruling U.S. stocks staged a decisive recovery on Friday, February 20, 2026, as a landmark Supreme Court decision outweighed a cocktail of weak economic data and intensifying Middle East tensions. Market sentiment shifted sharply higher after the Supreme Court, in a **6-3 ruling**, struck down President Trump’s sweeping global tariffs. The court determined that the executive branch exceeded its authority under the 1977 International Emergency Economic Powers Act, ruling that the power to impose such taxes rests solely with Congress. Major Indices Performance The legal victory for import-dependent industries triggered a broad rally across the major averages: * **Nasdaq Composite**: Surged **1.11%** to **22,935.19**, led by heavyweights in the tech and e-commerce sectors. * **S&P 500**: Advanced **0.66%** to close at **6,907.34**. * **Dow Jones Industrial Average**: Rose **130.43 points** (or **0.26%**) to **49,525.59**, bouncing back from an earlier **200-point** deficit. Mixed Economic Signals Before the court's decision, futures were pressured by a "stagflationary" data mix. Fourth-quarter **GDP growth slowed to 1.4%**, significantly lower than the **4.4%** seen in the previous period and below analyst expectations of **2.5%**. Simultaneously, the Federal Reserve's preferred inflation metric, the Core PCE Price Index, rose **0.4% in December**. This pushed the annual inflation rate to **3.0%**, well above the central bank's **2.0% target**. This combination of cooling growth and sticky prices complicates the path for the Federal Open Market Committee, which currently maintains rates between **3.50% and 3.75%**. Geopolitical and Commodity Impacts Geopolitical risks remain a primary concern for energy markets. Tensions with Tehran reached a new peak as the U.S. began withdrawing fighter jets from NATO exercises to reposition them near the Middle East. President Trump indicated a decision on potential military action could come within the next **10 days** if a nuclear deal is not reached. In response to the friction, **Crude Oil** prices remained elevated, with Brent trading near **$71.18** per barrel. **Gold** prices showed high volatility, briefly touching records near **$5,075 per ounce** before stabilizing around **$5,041** as investors weighed the tariff ruling against global instability. Sector and Corporate Highlights The tech sector led the gains, with **Alphabet** rising nearly **4%** and **Amazon** climbing **2.8%**. However, the private credit market faced scrutiny after Blue Owl Capital halted redemptions on a key fund, causing its shares to tumble **5.9%** and dragging down peers like **Blackstone** and **Apollo**, which fell **5.3%** and **5.2%** respectively. While the Supreme Court ruling provides immediate relief, analysts note the administration may still pursue more targeted trade barriers through alternative legal authorities, potentially keeping long-term trade policy uncertainty on the horizon.