- S&P 500 up 0.45% at 6,890 as Supreme Court tariff ruling triggers mid-session relief bounce.
- Stagflation fears persist as Q4 GDP missed at 1.4%, Core PCE hit 3.0% YoY & rate cuts delayed.
- Tech (XLK) leads recovery on tariff relief while Energy (XLE) dips but builds bullish chart setup.
The US stock market recovered sharply on February 20, after the Supreme Court struck down President Trump’s tariffs in a landmark 6-3 ruling. The S&P 500 is trading around 6,890 at press time, up 0.45% from yesterday’s close, at the time of writing.
Tech (XLK) leads the rebound on tariff relief while Energy (XLE) gives back early gains despite rising oil prices. Alphabet (GOOGL) stands out, almost independently, with a 3.8% surge as it attempts to break free from a bearish pattern.
Top US Stock Market News:
- Q4 GDP and Core PCE Paint Stagflation Picture: Advance (first estimate) Q4 GDP came in at just 1.4% (vs. 2.8% consensus), while Core PCE rose to 3.0% YoY — its third straight month of acceleration. Growth slowing and inflation rising leave the Fed trapped, with June rate cut odds dropping on CME FedWatch.
- Supreme Court Strikes Down Trump Tariffs: The Court declared the President’s emergency tariffs unconstitutional in a 6-3 ruling. The US faces $150+ billion in potential refunds. The decision triggered a mid-session relief rally, removing a major inflationary and supply chain overhang.
- US-Iran Tensions Keep Oil Elevated: Indirect nuclear talks in Geneva continued amid military buildup threats on both sides. WTI (West Texas Intermediate, the US Oil Benchmark) held above $66 and Brent above $71, supporting energy stocks early before gains faded through the session.
Wall Street Recovers From Stagflation Scare As Tariff Ruling Sparks Relief Bounce
Wall Street faced one of its most dramatic intraday reversals on February 20, 2026. The morning opened with panic as the “data deluge” delivered a stagflation-like combination.
Advance Q4 GDP slowed sharply to 1.4% (well below the 2.8% consensus), while Core PCE accelerated to 3.0% YoY, its hottest reading since mid-2025. S&P 500 futures dropped immediately after the 8:30 AM ET release.
U.S. S&P 500 E-MINI FUTURES DOWN 0.3%, NASDAQ 100 FUTURES DOWN 0.4%, DOW FUTURES DOWN 0.2%
— *Walter Bloomberg (@DeItaone) February 20, 2026
But the mood flipped mid-session when the Supreme Court struck down President Trump’s sweeping emergency tariffs in a landmark 6-3 ruling. Markets interpreted the decision as a major deflationary catalyst going forward.
The S&P 500 is trading at approximately 6,890 at press time, up 0.45% from yesterday’s close. Moreover, the index is now flirting with a strong zone near 6,888.
A sustained move above this level opens the path toward 6,959, and clearing that could prime the index for the psychological 7,000 milestone.
On the downside, 6,775 is the key support to watch. A break below that level would invite weakness toward 6,707.
However, upside conviction is not without risk. Experts are already flagging that the tariff ruling may not be the final word — the administration could pursue alternative tariff mechanisms, which could weigh on sentiment as the session progresses.
A move to key resistance still requires roughly a 1% push from current levels.
US TARIFFS TO CONTINUE DESPITE SCOTUS RULING
Trade expert Lawrence Herman says the Supreme Court rebuke of Trump’s tariffs won’t end trade tensions. The administration can still use other tools, and Canada continues to face sectoral tariffs on steel, aluminum, autos, and forest…
— *Walter Bloomberg (@DeItaone) February 20, 2026
The Nasdaq leads the recovery, up 172 points (0.76%), and the DOW is up 68 points, at the time of writing.
The CBOE Volatility Index (VIX) dropped sharply, falling approximately 5%. The move below 20 signals that the initial stagflation panic has eased and the market is shifting back toward a cautiously optimistic posture.
The tug-of-war is clear: stagflation data pulling markets down, tariff relief pulling them up. Onto the sectors now.
Tech Rallies While Energy Dips, But Builds Bullish Case
The sector story on February 20, 2026, takes an unexpected turn. The surface numbers tell one story, but the charts tell another.
Technology (XLK) is up 0.36% at $140.72, benefiting from the Supreme Court’s tariff strike-down as lower import costs directly support hardware and semiconductor supply chains.
However, the rally faces a ceiling. XLK attempted to cross above the $141.29 resistance, but sellers stepped in. A daily close above this level is needed to open the path toward $144.78 and eventually the $149–$150 zone.
A failure to hold above $139 would flip the short-term structure bearish. The tariff relief provides the US stock market catalyst, but with Core PCE at 3.0%, reinforcing higher-for-longer rates, tech valuations remain under pressure.
Energy (XLE) tells the opposite story. The sector looked strong as US-Iran tensions pushed oil higher: WTI held above $66 and Brent above $71. But gains faded through the session, with XLE now down 1.09% since yesterday.
Yet the XLE chart tells a more constructive story underneath the red. The ETF appears to be consolidating inside a bullish flag. If the breakout confirms above $55.90, it could target $60.29 — roughly a 10% move.
The full measured move from the previous leg projects a potential 27% rally. A drop below $53.19 would invalidate the setup.
Alphabet (GOOGL) Surges As Bears Lose Grip
Alphabet (GOOGL) is the standout US stock market mover on February 20, 2026, surging approximately 3.8% to trade around $316. The stock has shown sustained buying momentum with no significant upper wick, yet, a sign that sellers have not stepped in to cap the bounce.
The move is notable because Alphabet had been trapped inside a bearish flag pattern after pulling back from its early February highs. Today’s surge is attempting to break down that bearish structure, reversing off the $296–$300 support zone and pushing toward pattern invalidation.
However, Alphabet is not out of the woods yet. A sustained move above $327 — extending to $330 — is needed to fully invalidate the bearish setup and confirm a larger bullish reversal. Until those levels are cleared, the risk of a failed breakout remains real.
On the downside, a drop back below $304 would weaken the breakout attempt and reintroduce bearish pressure. Further weakness under $296 could accelerate selling, potentially re-testing lower supports and resuming the bearish flag pattern — erasing today’s entire gain.
Within Communication Services, Alphabet is leading while Meta also posts gains, as over 51% of stocks are in the green.
While other sectors stabilize with muted moves, Alphabet’s sizable independent rally signals that dip-buyers are aggressively positioning in AI-linked growth names.
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