Weekly Market Recap (February 16–20, 2026)
U.S. equities advanced as trade-policy relief and improving industrial momentum supported cyclical sectors. Materials and industrial names led the rebound, while defensive consumer stocks lagged.
A U.S. Supreme Court ruling striking down global tariffs boosted confidence across auto and transport shares, reinforcing the rotation back toward economically sensitive industries.
Index Performance (Weekly)
| Index | Weekly Change |
|---|---|
| S&P 500 | +0.97% |
| Nasdaq | +1.36% |
| Dow Jones | +0.19% |
Sector Snapshot (1-Week)
The Score — What Drove the Market
- Tariff Relief: The U.S. Supreme Court ruling global tariffs illegal boosted European and global auto manufacturers, lifting cyclicals and transport-linked equities.
- Autos & Industrial Momentum: Stellantis, Volkswagen, Mercedes-Benz and Renault advanced, signaling improved trade clarity and supply-chain confidence.
- Earnings Divergence: Aston Martin warned on 2025 profits, while other industrial players showed mixed profitability trends tied to tariff impacts and cost reductions.
- MRO Expansion: SIA Engineering highlighted long-term demand for maintenance, repair and overhaul services, reinforcing steady aviation recovery themes.
- Rotation Out of Defensives: With trade tensions easing, investors rotated away from Consumer Defensive stocks toward economically sensitive sectors.
Key Takeaway
The week reinforced how quickly sentiment can shift when policy uncertainty clears. Trade normalization boosted cyclicals, industrials and materials, while defensives gave back recent outperformance. Markets appear increasingly responsive to legal and policy clarity rather than purely macro data.
Week ended February 20, 2026. Data based on provided figures.
