US stocks close higher after Supreme Court rules against Trump tariffs
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A trader works on the floor of the New York Stock Exchange at the opening bell on Feb 20, 2026.
PHOTO: AFP
NEW YORK - US stocks ended higher on Feb 20, led by gains in Alphabet, Amazon and other Wall Street heavyweights after the Supreme Court struck down President Donald Trump’s global tariffs
The US top court, which has a conservative majority, ruled 6-3 against Mr Trump’s global tariffs, enacted last year under a federal law meant for national emergencies.
Mr Trump called the ruling a “disgrace” and said he would impose a 10 per cent global tariff for 150 days under Section 122 of the Trade Act of 1974 to replace emergency duties that the Supreme Court struck down.
Investors were relieved that Mr Trump’s newly announced global tariff was not higher, said Mr Mike Dickson, head of research and quantitative strategies at Horizon Investments in Charlotte, North Carolina.
“Today is a removal of some uncertainty, and we’re on to the next phase,” Mr Dickson said. Some of Wall Street’s most valuable and widely held companies rose, including a 3.7 per cent rise in Google-parent Alphabet, a 2.6 per cent increase in Amazon and a 1.5 per cent rally in Apple.
Shares of US toymaker Hasbro, online furniture retailer Wayfair, Pottery Barn-owner Williams-Sonoma and luxury furniture retailer RH - all hit by tariffs - gained between 0.5 per cent and 2.3 per cent.
Thousands of companies around the world have filed lawsuits challenging Mr Trump’s sweeping tariffs and sought refunds on the duties they have paid. There is a risk more than US$175 billion (S$222 billion) in US tariff collections
The S&P 500 climbed 0.69 per cent to end the session at 6,909.51 points.
The Nasdaq gained 0.9 per cent to 22,886.07 points, while the Dow Jones Industrial Average rose 0.47 per cent to 49,625.97 points.
Nine of the 11 S&P 500 sector indexes rose, led by communication services, up 2.65 per cent, followed by a 1.27 per cent gain in consumer discretionary.
For the week, the S&P 500 rose 1.08 per cent, the Nasdaq gained 1.51 per cent and the Dow edged up 0.25 per cent.
The S&P 500 is up almost 1 per cent in 2026, trailing a gain of over 3 per cent in MSCI’s global stock gauge.
Data released early in the day showed US economic growth slowed more than expected in the fourth quarter, while a separate reading indicated inflation picked up in December.
Traders see just over a 50 per cent chance the Fed will cut interest rates by its June policy meeting, according to CME’s FedWatch Tool.
Investors jittery about the health of Wall Street’s AI rally will scrutinise Nvidia’s quarterly results on Feb 25. AI-linked technology stocks have gyrated in recent months due to concerns about high valuations and limited evidence that massive investments in AI are driving revenue and profit growth.
Industries ranging from software to logistics have also been hit by concerns that rapidly improving AI tools could disrupt their business models and intensify competition.
Akamai Technologies slumped 14 per cent after the cloud company forecast first-quarter adjusted profit below Wall Street estimates.
Advancing issues outnumbered falling ones within the S&P 500 by a 2.0-to-one ratio.
The S&P 500 posted 34 new highs and 7 new lows; the Nasdaq recorded 81 new highs and 153 new lows.
Volume on US exchanges was relatively light, with 18.3 billion shares traded, compared to an average of 20.3 billion shares over the previous 20 sessions. REUTERS
