Tech Stocks Surge as Supreme Court Overturns Tariffs Despite Economic Growth Miss

Market Overview - The U.S. stock market experienced significant volatility on February 20, 2026, influenced by a Supreme Court ruling, disappointing economic growth data, and geopolitical tensions [1] - The tech-heavy Nasdaq Composite led gains, rising 0.41% to 22,776.33, while the S&P 500 increased by 0.15% to 6,871.97; in contrast, the Dow Jones Industrial Average fell by 0.21% to 49,290.82 [2] Supreme Court Ruling - A 6-3 decision by the U.S. Supreme Court struck down a significant portion of the administration's tariff agenda, ruling that the executive branch lacks the authority to impose tariffs unilaterally under the International Emergency Economic Powers Act (IEEPA) [3] - This ruling provided relief to technology giants and retailers facing rising import costs [3] Economic Data - The Bureau of Economic Analysis reported a real GDP growth of only 1.4% for the fourth quarter, missing the consensus estimate of 2.5% and down from 4.4% in the third quarter, attributed to the late-2025 government shutdown and reduced government spending [4] Corporate Developments - Amazon shares rose by 2% following the tariff ruling, while Alphabet saw a nearly 4% increase, easing inflationary concerns [5] - Microsoft shares trended higher after Citigroup reiterated a "Buy" rating, noting a decade-low valuation relative to forward earnings [5] - Nvidia shares edged up 0.89% ahead of its earnings report, with strong demand for its Blackwell platform [6] - Walmart shares fell over 2% after a downgrade from HSBC, citing valuation concerns despite strong sales growth [7] - Akamai Technologies experienced a significant drop of over 9% after issuing a disappointing earnings forecast [7] Earnings and Economic Outlook - Mixed signals continued from earnings reports, with Opendoor Technologies and Socket Mobile contributing to market dispersion [8] - Evergy Inc raised its long-term EPS growth target to 6-8% through 2030, supported by new data center projects [8] Future Market Considerations - Investors are preparing for the Federal Reserve's core PCE price index, which showed a 3% year-over-year increase, above the 2% target, complicating the Fed's position [9] - Upcoming reports on the U.S. Producer Price Index and earnings from Berkshire Hathaway and Salesforce are also anticipated [9] - Geopolitical risks remain a concern, particularly regarding the 15-day deadline for nuclear negotiations with Iran [9]