SCOTUS Shakes Markets: Tariff Down, Stocks Up?!

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The American stock market, that capricious creature, experienced a sudden and dramatic recovery on February 20, after the Supreme Court, that arbiter of fate, struck down President Trump’s tariffs in a 6-3 decision, sending traders into a frenzy of relief. The S&P 500, that fickle mistress, now dances at 6,890, up 0.45% from yesterday’s close, as if it had just discovered a long-lost love.

Tech (XLK), that paragon of innovation, leads the rebound on tariff relief, while Energy (XLE), the eternal contrarian, surrenders its early gains despite oil prices’ relentless ascent. Alphabet (GOOGL), that digital colossus, surges 3.8%, attempting to escape a bearish pattern with the grace of a dancer dodging a storm.​​​​​​​​​​​​​​​​

Wall Street Recovers From Stagflation Scare As Tariff Ruling Sparks Relief Bounce

Wall Street, that melodramatic actor, faced one of its most theatrical intraday reversals on February 20, 2026. The morning opened with panic as the “data deluge” delivered a stagflation-like spectacle.

Advance Q4 GDP, that unreliable narrator, slowed sharply to 1.4% (a far cry from the 2.8% consensus), while Core PCE, that inflationary vulture, soared to 3.0% YoY, its hottest reading since mid-2025. S&P 500 futures plummeted immediately after the 8:30 AM ET release, as if the market had just been handed a death warrant.

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 shifted mid-session when the Supreme Court, that bastion of judicial wisdom, delivered a verdict that sent shockwaves through the financial world. Markets, ever the fickle lovers, interpreted the decision as a harbinger of deflationary bliss.

The S&P 500, that mercurial beauty, now hovers 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, as if it were a suitor courting a reluctant maiden.

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-a goal as elusive as a mirage in the desert.

On the downside, 6,775 is the key support to watch. A break below that level would invite weakness toward 6,707, as if the market were retreating into a cave of despair.

However, upside conviction is not without risk. Experts, those self-proclaimed prophets, 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, a task as daunting as climbing Mount Everest in a hurricane.

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, that digital titan, leads the recovery, up 172 points (0.76%), while the DOW, ever the stoic, clings to its 68-point gain like a lifeline.

The CBOE Volatility Index (VIX), that barometer of panic, dropped sharply, its descent below 20 signaling a tentative return to optimism, albeit a cautious one.

The tug-of-war is clear: stagflation data pulling markets down, tariff relief pulling them up. Onto the sectors now, where the drama only escalates.

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, those sly tricksters, tell another.

Technology (XLK), that enigmatic entity, 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, those unyielding adversaries, stepped in. A daily close above this level is needed to open the path toward $144.78 and eventually the $149-$150 zone-a goal as distant as the stars.

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-a cruel irony.

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-a tale of missed opportunities.

Yet the XLE chart, that cunning storyteller, 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-a warning whispered by the market’s most skeptical voices.

Alphabet (GOOGL) Surges As Bears Lose Grip

Alphabet (GOOGL), that digital colossus, 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-a rare moment of harmony in the chaos.

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-a David vs. Goliath scenario.

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-a gamble that even the most optimistic investors would hesitate to take.

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, a cruel twist of fate.

Within Communication Services, Alphabet is leading while Meta also posts gains, as over 51% of stocks are in the green-a fleeting moment of unity in a fragmented world.

While other sectors stabilize with muted moves, Alphabet’s sizable independent rally signals that dip-buyers are aggressively positioning in AI-linked growth names-a testament to the market’s insatiable hunger for innovation.

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2026-02-20 21:51