February 25, 2026: Uncertainty in Focus

Last week’s defining moment arrived on Friday when the Supreme Court struck down the Trump administration’s sweeping IEEPA-based global tariffs in a 6–3 ruling, offering markets a degree of relief from months of trade uncertainty. Stocks rose on the news, with the S&P 500 gaining 0.69% to close at 6,909.51 and the Nasdaq advancing 0.9% to 22,886.07. However, the rally was tempered when President Trump swiftly announced a new 10% global tariff using Section 122 authority, reinforcing that trade friction remains a live issue. It remains unclear whether companies will be able to reclaim the tariffs they have already paid, or how that process would work.

The week also brought sobering economic data. The U.S. economy grew just 1.4% in the fourth quarter, well below the expected 3.0%. Much of the slowdown can be attributed to the government shutdown. Markets also had to digest an increase in the core PCE Price Index, the Fed’s preferred inflation gauge, to 3.0%. The combination of weak growth and stubbornly high inflation in the fourth quarter runs afoul of a market narrative that has centered on strong growth and lower inflation.

With both policy and economic trajectories in flux, navigating the months ahead will require heightened investor vigilance and discipline.

Weekly Market Update: February 25, 2026