Financial insights for the week ending February 20, 2026
For the week ending February 20, 2026, markets recovered some of the prior week's losses. The S&P 500 gained 1.1%, the Nasdaq Composite rose 1.5%, the Dow Jones Industrial Average added 0.3%, and the Russell 2000 moved up 0.5%.
The week began quietly but gained momentum by Friday. Early attention centered on the Federal Reserve's January meeting minutes, which revealed a genuinely divided committee. Some members remain willing to tighten further if inflation stalls, while others appear comfortable holding steady. That split weighed on rate-sensitive sectors and nudged Treasury yields modestly higher. Midweek, Walmart reported solid holiday results but struck a cautious tone on the consumer. Given how consistently Walmart has served as a barometer for lower- and middle-income spending trends, that commentary carried more weight than the headline numbers alone. Software stocks continued to struggle, with names such as Salesforce and ServiceNow facing renewed pressure amid questions about whether AI spending is beginning to crowd out traditional enterprise budgets. Thursday's weakness was compounded by rising geopolitical tensions between the U.S. and Iran, which pushed oil prices higher. The inflection point came Friday, when a federal court struck down most of the administration's tariff policy, ruling that the International Emergency Economic Powers Act does not authorize the president to impose tariffs. Retailers and importers responded sharply, and the Nasdaq moved toward snapping a five-week losing streak. Beneath the surface, however, the economic data remained mixed. Fourth quarter GDP grew at 1.4%, well below the 2.5% consensus estimate. Core PCE inflation held at 3%, in line with expectations but still materially above the Fed's stated objective, underscoring the narrow path policymakers continue to navigate.
Looking ahead, Nvidia reports earnings next week, and its results will likely influence sentiment across the broader technology sector. CEO Jensen Huang has described demand for Blackwell chips as off the charts, and investors will be focused less on the past quarter than on forward guidance. Beyond Nvidia, the implications of the tariff ruling will take time to sort through, particularly regarding whether affected companies can seek reimbursement for duties already paid. With growth softening and inflation proving persistent, the Fed's path remains uncertain. Until then, the market will probably keep chasing data.
Tax season is well underway. Most required forms should already be available through employers or financial institutions. Taking time now to organize W-2s, 1099s, and year-end brokerage statements can reduce stress later in the filing season. Reaching out to your accountant early typically allows for more thoughtful review and provides flexibility if any discrepancies or amended documents arise.
Enjoy your day! Come back next Saturday for our latest commentary. We are here to answer any of your financial questions.