Reviewed by Gotrade Internal Analyst
Markets eye Nvidia earnings and Trump’s State of the Union.
U.S. stocks moved higher after the Supreme Court struck down most of President Donald Trump’s tariff policies, sparking a rally in digital-advertising companies. Alphabet (GOOGL), Meta (META), Snap (SNAP), and Pinterest (PINS) were among the biggest gainers as easing tariff pressure could support higher marketing spending from global clients.
Alphabet rose about 4% to become one of the largest contributors to index gains, while Pinterest jumped 6% after recently facing pressure from retail clients that had cut ad budgets due to rising import costs. Research firm EMARKETER said tariff refunds could be redirected into additional advertising spend.
Despite improving sentiment, policy uncertainty remains. Trump later signaled plans for a 10% global tariff, underscoring that the trade outlook could still shift and remain a key market risk throughout the year.
Investor focus now turns to a catalyst-heavy week ahead, particularly Nvidia (NVDA) earnings, which have historically acted as a major driver for technology and AI stocks. Trump’s State of the Union address and comments from Federal Reserve officials may also provide signals about the future path of interest rates.
Economic data including home-price indexes and producer inflation readings will offer further clues on underlying economic conditions, especially as inflation trends soften while the labor market remains resilient.
📊 Market Wrap Feb 23rd 2026
🧠 Analyst Notes
💬 Market Highlights
Dollar Tree and Five Below Seen as Potential Winners from New Tariff Structure
Wells Fargo highlighted Dollar Tree (DLTR) and Five Below (FIVE) as potential beneficiaries of recent tariff developments following a Supreme Court ruling that could reduce policy volatility by requiring a more deliberate process for future tariff decisions, in contrast to the faster implementation under IEEPA; while China tariffs remain a wildcard, analysts see the possibility of more targeted Section 301 measures with exclusions similar to those in 2018–2019, potentially lowering the effective tariff burden on retailers versus prior levels, and given their fixed-price models and high exposure to China imports, DLTR and FIVE are viewed as having the greatest earnings leverage through potential margin expansion or reinvestment into value and product quality.
Hedge Funds Take Diverging Positions on Microsoft
Fourth-quarter 2025 13F filings reveal a divided hedge fund stance on Microsoft (MSFT), with major investors such as Soros Fund Management and 3G Capital significantly increasing their stakes, while Renaissance Technologies, Third Point, Tiger Global, and Point72 trimmed exposure and Whale Rock fully exited its position, reflecting contrasting views on valuation and medium-term growth prospects; at the same time, firms including Ark Invest, Coatue, Appaloosa, and Morgan Stanley modestly added to holdings, underscoring Microsoft's status as a mega-cap name that commands strong conviction from some investors while prompting profit-taking and portfolio rotation from others.
Trump Pressures Netflix Amid Warner Deal Scrutiny
President Trump publicly urged Netflix (NFLX) to remove Susan Rice from its board, escalating political tensions as the company seeks regulatory approval for its proposed $72 billion acquisition of Warner Bros. Discovery (WBD) entertainment assets, while also facing a competing $77.9 billion hostile bid from Paramount (PSKY); the remarks add a layer of political risk to a transaction already under Justice Department review for potential competitive concerns in the streaming market, making regulatory approval more complex and introducing additional uncertainty for NFLX at a critical strategic juncture.
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