By Trendsetter Tribune 
NEW YORK — U.S. stock markets executed a sharp midday reversal on Friday, February 20, 2026, as a landmark Supreme Court ruling striking down President Trump’s global “Liberation Day” tariffs ignited a broad relief rally. The judicial decision jolted indices out of the red, helping investors shrug off earlier data showing a sharp slowdown in fourth-quarter GDP growth.
The major averages finished the week in positive territory, though gains were tempered by the President’s subsequent announcement of a new “stop-gap” 10% global tariff.
The Closing Bell: Feb 20, 2026
After starting the session lower on news of a 1.4% GDP growth rate, the three major indices surged immediately following the 6–3 ruling.
| Index | Closing Value | Change |
| S&P 500 | 6,909.51 | +0.7% |
| Nasdaq Composite | 22,886.07 | +0.9% |
| Dow Jones Industrial | 49,625.97 | +0.5% |
The Winners: Retail and Tech Lead the Surge
Sectors most vulnerable to high import costs saw the most significant gains. Companies that rely heavily on global supply chains—particularly those sourcing from Vietnam, Indonesia, and China—led the leaderboard.
- E-commerce & Consumer Discretionary: Wayfair (+1.6%), Amazon (+2.6%), and eBay (+3.9%) rallied as the threat of 20–40% duties evaporated. Etsy was a standout, jumping 8.4% on the news.
- Apparel & Sportswear: High-import brands like Nike (+2.7%), Adidas (+2.0%), and Deckers Outdoor (+2.3%) saw shares “shoot up” after a year of absorbing tariff-related price hikes. Ralph Lauren briefly spiked 3.3% before settling at a 2.2% gain.
- Tech Heavyweights: Chipmakers and hardware firms with massive Asian manufacturing footprints also saw green. Alphabet climbed 4.0%, while Micron (+2.6%) and NVIDIA benefited from a renewed “risk-on” sentiment.
The “$175 Billion Rebate” Factor
A major driver of the rally was the potential for massive federal refunds. Analysts from the Penn-Wharton Budget Model estimated that between $133 billion and $175 billion in already-collected duties could eventually be returned to American businesses.
“Anything that can reduce this uncertainty will be viewed as a positive. The only question now becomes a rebate issue, which could act as a massive fiscal stimulus for the private sector.” — Todd Schoenberger, CrossCheck Management
The “Trump Rebound” and Global Reaction
The rally’s ceiling was limited late in the day when President Trump held a press conference calling the ruling a “disgrace” and announcing a temporary 10% global tariff under Section 122 of the Trade Act.
- European Markets: The FTSE 100 hit a new intraday high of 10,745 points following the ruling. European carmakers like Stellantis (+2.3%) and BMW (+0.8%) closed higher on hopes of easier access to the U.S. market.+1
- Currency Markets: The U.S. Dollar Index weakened slightly (down 0.2% to 97.67) as the prospect of lower protectionist barriers cooled the greenback’s “tariff-fueled” surge.
- Gold: Spot gold climbed to $5,039.42 an ounce as investors weighed the mixed economic data and potential for a legal “mess” over refunds.
Expert Analysis: “Short-Lived Relief?”
While the markets celebrated the removal of “executive-driven tariff shocks,” some analysts warned the bounce could be brief. Brian Jacobsen of Annex Wealth Management noted that while the Supreme Court limited the President’s method, his intent remains unchanged. The administration’s pivot to other trade laws suggests that “policy volatility” will remain a core feature of the 2026 market landscape.