GoAI Market Wrap - 21st Feb

Stock Market

On Friday (February 20), U.S. stocks opened lower but rallied to close higher after the Supreme Court ruled President Trump’s tariff policy illegal. By the close, the Dow Jones rose 0.47% to 49,625.97, the S&P 500 gained 0.69% to 6,909.51, and the Nasdaq climbed 0.9% to 22,886.07.

 

The Supreme Court upheld a lower court's ruling in a 6-3 decision, finding that the administration exceeded its authority by invoking the International Emergency Economic Powers Act (IEEPA) for its tariff regime. While the ruling was expected, questions remain regarding the potential refund of collected duties, which Michael Brenner of FBB Capital Partners suggested could act as an economic stimulus if mandated.

 

Following the ruling, Trump announced an executive order under Section 122 of the Trade Act of 1974 to impose a 10% supplemental tariff on all global imports. TD Securities noted that while details remain unclear, they expect tariffs to persist through alternative legal avenues. Meanwhile, macro data showed U.S. Q4 2025 GDP growth at 1.4%, missing the 2.8% forecast, largely due to the federal government shutdown. Despite this, consumer spending remained resilient, which analysts described as "incredible" amid pessimistic sentiment.

 

In geopolitics, Iranian Foreign Minister Araghchi reported "very good negotiations" with the U.S. in Geneva, with Iran now drafting a potential agreement for future talks.

Global Markets

U.S. Supreme Court Rules Trump’s Tariffs Illegal

 

The U.S. Supreme Court announced its ruling on February 20, determining that the massive tariff measures implemented by the Trump administration under the International Emergency Economic Powers Act (IEEPA) lacked clear legal authorization. The 6-3 decision sets a significant judicial precedent regarding the limits of presidential authority over trade policy, signaling a move toward the rule of law in trade matters.

 

Trump Announces 10% Supplemental Global Tariff

 

Following the court's decision, President Trump stated on February 20 that he would sign an executive order under Section 122 of the Trade Act of 1974 to impose an additional 10% tariff on all global goods on top of existing regular duties. He noted that this 10% tariff policy is expected to take effect in "about three days."

 

European Officials Respond to Tariff Ruling

 

Bernd Lange, Chair of the European Parliament's Committee on International Trade, remarked that the U.S. Supreme Court has established a "legal barrier," and the era of "unlimited and arbitrary tariff increases" by the U.S. President may be coming to an end. He described the ruling as a positive signal, showing that even the President cannot be above the law.

 

NASA Sets Artemis II Launch Date for March 6

 

NASA stated on February 20 that following the completion of a critical rocket fueling rehearsal, it plans to launch the Artemis II manned lunar flyby mission on March 6. However, NASA cautioned that remaining mission preparations could still result in a launch delay.

Corporate News

Google Considers TPU Department Restructuring

 

Reports indicate that Google is exploring ways to expand the market for its in-house AI chips and is considering restructuring its TPU department into a separate unit, though no formal plans are in place. Additionally, the company is in talks to invest approximately $100 million in the startup Fluidstack to amplify its growth potential and scale its AI infrastructure capabilities.

 

PacifiCorp to Pay $575 Million for Wildfire Claims

 

The U.S. Department of Justice announced on February 20 that PacifiCorp has agreed to pay $575 million to settle claims brought by the U.S. government. The settlement resolves damages caused by six wildfires across California and Oregon, marking a significant resolution for the utility provider's legal liabilities.

Forex & Commodities

International oil prices fell on February 20. By the close, WTI Crude Oil futures fell $0.09 (0.14%) to settle at $66.31 per barrel.

 

COMEX Gold futures surged $132.60 (2.65%) to $5,130.00/oz. COMEX Silver futures jumped $6.94 (8.93%) to $84.57/oz. In the spot market, Spot Gold rose $111.02 (2.22%) to $5,107.32/oz, while Spot Silver gained $6.12 (7.80%) to $84.62/oz.

Key Event

Gold Volatility Following Tariff Ruling and Russian Reserve Sell-off

 

Gold prices experienced volatile swings following the Supreme Court's tariff ruling and Russia’s disclosure that its central bank sold a portion of its gold reserves in January.

 

While the ruling initially boosted risk appetite and weighed on gold, analysts note that trade uncertainties remain high given the administration's proposed new 10% tariff.

Cryptocurrency

Bitcoin (BTC) is trading at $67,824.11 (+0.89%);

 

Ethereum (ETH) is at $1,962.87 (+0.18%).

 

BNB led altcoin gains, rising 2.59% to $624.18, while Solana (SOL) added 1.70% to $84.47.

Key Event

Analysts Warn of Potential Drop to $31,000

 

Strategists at Ned Davis Research warned that the "pain" for Bitcoin may not be over.

 

They noted that if the current bear cycle evolves into a full "Bitcoin Winter," the price could potentially drop as low as $31,000, suggesting that the downward pressure from the recent sell-off has not yet fully dissipated.