Weekly Market Commentary

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WEEK OF FEB. 16 THROUGH FEB. 20, 2026

The S&P 500 index rose 1.1% this week, led by communication services, as investors digested changes to US tariff policy amid a Supreme Court ruling.

The S&P 500 ended Friday's session at 6,909.51. Still, the weekly gain - which came in just four sessions as the market was closed on Monday for Presidents Day - wasn't enough to move the market benchmark into positive territory for the month. The S&P 500 is down 0.4% for February but up 0.9% for the year.

US President Donald Trump said on Friday he will sign an order imposing additional 10% global tariffs, under Section 122, after the Supreme Court invalidated his reciprocal tariffs imposed under the International Emergency Economic Powers Act.

"We are also initiating several Section 301 and other investigations to protect our country from unfair trading practices," Trump wrote in a social media post.

The developments came as official data showed US economic growth was well below Wall Street's expectations in the final three months of 2025 as federal spending contracted due to the longest-ever government shutdown. Real gross domestic product rose at an annual rate of 1.4% in the December quarter, the slowest pace in three quarters; the consensus estimate was for 2.8% growth, according to a survey compiled by Bloomberg.

A delayed release of economic data also showed US consumer spending growth unexpectedly held steady in December, while the Federal Reserve's preferred inflation metric accelerated more than Wall Street's estimates to 3% year over year.

Communication services had the largest percentage increase of the week, climbing 2.3%, followed by gains of 1.7% each in consumer discretionary and industrials. Financials and technology added 1.5% each. Energy and real estate also eked out small gains.

Omnicom Group (OMC) led the gainers in communication services, jumping 21% as the company reported Q4 revenue above analysts' mean estimate and unveiled a $5 billion share-repurchase program, including $2.5 billion under an accelerated buyback. Omnicom also maintained its quarterly dividend rate.

Garmin (GRMN) shares led the climb in consumer discretionary as the company reported fiscal Q4 pro forma net income per share as well as net sales above analysts' expectations. Garmin also forecast 2026 pro forma earnings per share and revenue above Street views at the time. Shares rose 16%.

Deere (DE) was the top performer among industrials, climbing 9.9% as the company reported fiscal Q1 earnings per share and net sales above analysts' mean estimates.

On the downside, consumer staples fell 2.3%, followed by a 0.6% decline in health care and a 0.5% loss in utilities. Materials also edged lower.

Walmart (WMT) was among the hardest-hit stocks in consumer staples, falling 8.1%. The retailer's fiscal Q4 adjusted earnings per share and revenue slightly surpassed analysts' mean estimates, but its guidance ranges for fiscal Q1 and fiscal 2027 adjusted EPS came in below Street views.

Next week's earnings calendar features Home Depot (HD), Constellation Energy (CEG), NVIDIA (NVDA), TJX (TJX), Salesforce (CRM), Lowe's (LOW) and Berkshire Hathaway (BRK.A, BRK.B).

Economic data will include February consumer confidence and a delayed report on the January producer price index.

Provided by MT Newswires.