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US stocks rebound after Supreme Court rules against Trump tariffsThe S&P 500 and the Dow Jones Industrial Average both moved up 0.4%, coming off the end of a three-day winning streak on Thursday. The tech-exposed Nasdaq Composite led the way higher, rising 0.6%.By Megha Rani  February 20, 2026, 9:05:46 PM IST (Updated)3 Min Read(Photo Credit : REUTERS/Issei Kato)US shares recovered after a cautious start on Wall Street on early Friday, after the Supreme Court issued a major decision on President Donald Trump’s global tariffs, striking them down in a 6–3 ruling.

The S&P 500 and the Dow Jones Industrial Average both moved up 0.4%, coming off the end of a three-day winning streak on Thursday. The tech-exposed Nasdaq Composite led the way higher, rising 0.6%.

The Court said that Trump exceeded his authority by imposing widespread tariffs under the International Emergency Economic Powers Act, a law intended for national emergencies rather than broad trade measures. While the decision overturns most of the tariffs enacted during his second term, the Court did not rule on the eligibility of businesses seeking refunds for duties already paid.

Overall, the ruling represents a significant setback to Trump’s tariff agenda and reshapes the limits of presidential power in trade policy.

Earlier, US stocks started lower after data showed a sharp slowdown in fourth-quarter economic growth and persistent inflation pressures, while investors also awaited a potentially market-moving Supreme Court ruling on tariffs.

Fresh economic data set the tone for markets. US gross domestic product expanded at an annualised pace of 1.4% in the fourth quarter, sharply below the 2.5% growth economists had expected and a marked slowdown from the 4.4% surge in the third quarter. The softer print reinforced concerns that the world’s largest economy is losing steam heading into the new year.

Inflation data, however, offered little relief. The personal consumption expenditures (PCE) price index — closely tracked by the Federal Reserve — showed core PCE at 3% in December, in line with estimates. The reading suggests price pressures remain elevated even as growth moderates, complicating the outlook for interest rates.

Beyond macro data, markets are closely watching the Supreme Court of the United States, which could deliver a ruling on President Donald Trump’s tariffs imposed under the International Emergency Economic Powers Act. Traders largely expect equities to react positively if the duties are struck down, though there is speculation the administration could pursue alternative measures if needed.

Wall Street ended Thursday’s session in the red. The S&P 500 slipped nearly 0.3%, leaving the benchmark broadly flat for the year so far. The Nasdaq Composite fell 0.3%, while the Dow Jones Industrial Average shed 267 points, or 0.5%.

Adding to the cautious mood, geopolitical tensions between the US and Iran intensified after Trump said he would decide within 10 days whether to authorise military strikes. Oil prices moved higher on fears of escalation, injecting fresh volatility into global markets.Continue ReadingFirst Published: Feb 20, 2026 9:00 PM ISTTagsDow JonesGDP dataNASDAQSupreme Courttrump tariffsUS stockUS stock marketUS Wall Street