The stock market showed a notable rebound last week, even as Wall Street navigated a mix of encouraging and concerning headlines. The Nasdaq index broke its five-week losing streak on Friday, rising 1.9%, driven by significant gains from major tech companies like Meta Platforms, Nvidia, and Amazon. Simultaneously, the S&P 500 increased by 1.1% during the holiday-shortened week, ending a two-week downtrend.
A crucial factor contributing to the market’s uplift was the Supreme Court’s ruling against former President Donald Trump’s emergency tariffs, which provided relief to consumer-related companies grappling with increased import costs. The S&P 500 gained 0.7% on Friday following the court’s decision, which emphasized the need for clear congressional authorization for such extensive tariff powers.
In response to the ruling, Trump hinted at imposing new global tariffs, but these can only remain effective for 150 days without further congressional endorsement. This uncertainty left investors cautious, particularly as companies like Nike, which earlier projected a $1.5 billion tariff impact, ended lower despite an initial uptick. Other consumer giants like Costco, Procter & Gamble, and Amazon also face implications from the ruling, highlighting the complex dynamics of tariff-related pricing and inventory strategies.
Meanwhile, major tech stocks rallied impressively. Meta announced plans to utilize millions of Nvidia’s chips for its data centers, spurring both stocks to gains of 2.5% and 3.8%, respectively. Amazon’s shares surged 5.6% after it was revealed that hedge fund mogul Bill Ackman increased his investment in the e-commerce giant. Despite initial struggles, Alphabet found its footing, closing up 3% in the week after investors deemed its recent price drop unwarranted. Not to be overlooked, Corning surged by 4.5%, benefiting from the ongoing AI boom through its fiber optic cable offerings.
However, the financial sector was shaken by concerns stemming from Blue Owl Capital, which restricted withdrawals from its private debt fund. This incident raised alarm bells about the underlying health of the rapidly growing private credit market, leading to a significant drop in shares of major asset managers such as Ares Management and Blackstone. While Ares and Blackstone suffered losses of 8% and 6.6% respectively during the week, Apollo managed a modest recovery. Within the portfolio held by Jim Cramer’s charitable trust, BlackRock maintained a minor exposure to private credit but showed resilience amid the turmoil, bouncing back and finishing the week up 2%.
In trading activities last week, Capital One was the sole financial stock added to the portfolio, while positions in Danaher and Texas Roadhouse were exited after recent earnings highlighted ongoing challenges, particularly with rising beef prices affecting Texas Roadhouse.
As the market heads into a new week, investors are keenly observing these developments, hoping the recent upward momentum continues. The interplay of policies, corporate actions, and economic indicators will remain vital in shaping market sentiment moving forward. Those tracking the market closely will want to stay updated, especially with potential shifts or announcements coming from Congress and corporate earnings ahead.
Original Source: https://www.cnbc.com/2026/02/21/3-forces-that-drove-the-stock-market-during-wall-streets-comeback-week.html
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Publish Date: 2026-02-21 23:16:00
