Stock Market Today, Feb. 20: S&P 500 Gains 0.7% As Supreme Court Strikes Down Tariffs
The Motley Fool
by newsfeedback@fool.com (Emma Newbery)February 20, 2026
AI-Generated Deep Dive Summary
The stock market ended February 20 on a positive note, with the S&P 500 gaining 0.7% to close at 6,909.51. This rally was fueled by a Supreme Court decision that struck down tariffs imposed under federal emergency powers, leading to a broad relief rally across major indices. The Nasdaq Composite rose 0.90% to 22,886.07, while the Dow Jones Industrial Average added 0.47% to reach 49,625.97. Tariff beneficiaries, particularly e-commerce companies like Amazon, eBay, and Etsy, saw significant gains. Etsy, for instance, surged 8.39% after beating earnings expectations in its Q4 results. Additionally, tech giants such as Alphabet and Micron Technology also saw strong increases, driven by optimism surrounding AI and memory chip developments.
The Supreme Court’s ruling was a pivotal moment, as it effectively reversed the government’s authority to impose tariffs using federal emergency powers. President Trump announced plans to implement a 10% global tariff under a different trade law, but the court’s decision cast doubt over this strategy. The move has significant implications for companies like Costco and Toyota, which have already paid billions in levies and are now seeking refunds. The total estimated refund for major companies exceeds $170 billion.
Despite the positive stock market performance, the Bureau of Economic Analysis reported a disappointing GDP growth rate of 1.4% year-over-year for Q4, down from the previous quarter’s 4.4%. This underwhelming growth was attributed to the prolonged government shutdown, which weighed heavily on economic activity. While the stock market rally provided a counterbalance to this negative data, it highlights the complex interplay between macroeconomic factors and investor sentiment.
For readers interested in finance,
Verticals
financeinvesting
Originally published on The Motley Fool on 2/20/2026