EB Daily Market Report - Friday, February 20, 2026

Dear Members.

Economic reports, including GDP and PCE were released prior to the market open and it looked like the bears might enjoy a good day. Then the Supreme Court released its opinion that struck down the president's tariffs and stocks moved higher with all of the major indexes up nicely as we near the end of another trading week.

We're still seeing more interest in blue chip stocks while technology lags. And the VIX has moved back to 19 after climbing above 21 earlier in the session.

Realistically, the reversal in the tariff policy is going to take time to get sorted out as its been make clear that there are other options to keep them in place. So while we're seeing an initial positive reaction to the news it's likely to be contained as further details emerge. Let's also keep in mind that the weak GDP and inflationary PCE reports released this morning might sink in once the initial positive response to the tariff decision wanes. Also, let's remember that monthly options expire today which could add to near term volatility.

The bottom line here is not much has really changed. The S&P remains in a tight trading range as it has been in for a few months now. The range remains 7002 to the upside and 6775 to the downside. Expect more churning until one of those goes.

Tom will be back with his Weekly Market Report on Monday.

At your service,

John Hopkins