Why Is The US Stock Market Up Today?
The US stock market rebounded sharply on February 20, driven by the Supreme Court striking down President Trump's tariffs, despite initial stagflation concerns.Summary
The US stock market experienced a sharp recovery on February 20, 2026, with the S&P 500 trading up 0.45% to around 6,890, largely fueled by the Supreme Court's 6-3 ruling that declared President Trump's emergency tariffs unconstitutional. This decision was interpreted as a major deflationary catalyst, removing an overhang on inflation and supply chains, which triggered a mid-session relief rally.
Earlier in the day, markets were pressured by economic data showing a stagflationary picture: Q4 GDP slowed sharply to 1.4% (below the 2.8% consensus), while Core PCE accelerated to 3.0% YoY, reducing expectations for near-term rate cuts. Despite this, the tariff ruling provided the necessary catalyst for the bounce, causing the CBOE Volatility Index (VIX) to drop sharply.
Sector performance was mixed; Technology (XLK) led the rebound due to expected lower import costs, though it faced resistance. Energy (XLE) gave back early gains despite rising oil prices from US-Iran tensions. Alphabet (GOOGL) was a standout performer, surging 3.8% as it attempted to break free from a bearish pattern, signaling aggressive positioning by dip-buyers in AI-linked growth names.
(Source：BeInCrypto)