The stock market showed a strong recovery on Friday, with major indexes posting gains after the Supreme Court decision to strike down President Trump’s global tariffs. The S&P 500, Dow Jones Industrial Average, and Nasdaq 100 all closed higher, with the S&P 500 and Nasdaq 100 reaching 1-week highs. March E-mini S&P futures and March E-mini Nasdaq futures also rose on the positive sentiment.
Initially, stocks had moved lower on Friday due to weaker-than-expected US Q4 GDP growth and signs of inflation pressures. However, the market rallied after the Supreme Court ruling and President Trump’s announcement of a new global tariff under Section 122 of the Trade Act of 1974. The decision to maintain existing tariffs under Section 232 and Section 301 also influenced market dynamics.
Geopolitical risks added bearish sentiment to the market, with President Trump increasing pressure on Iran to reach a nuclear deal within a limited timeframe. Additionally, hawkish comments from Atlanta Fed President Raphael Bostic regarding interest rates put further pressure on stocks.
Despite these challenges, Q4 earnings season has been a positive factor for stocks, with a majority of S&P 500 companies beating expectations. Earnings growth is expected to continue, providing support to the market.
In terms of interest rates, March 10-year T-notes closed down slightly as the 10-year T-note yield rose. European government bond yields moved lower, with positive manufacturing PMI data from the Eurozone and the UK.
In the US stock market, technology stocks like Alphabet, Amazon.com, and Nvidia led gains, while asset managers and cybersecurity software stocks experienced declines. Stock movers like RingCentral, Corning, and Comfort Systems USA posted strong gains, while GRAIL Inc and Akamai Technologies faced losses.
Looking ahead, earnings reports from companies like Diamondback Energy Inc, Dominion Energy Inc, and Domino’s Pizza Inc are expected on 2/23/2026. Overall, the market remains optimistic despite geopolitical tensions and inflation concerns, with investors closely monitoring economic indicators and corporate earnings.
