White House & Policy - February 25, 2026 (EOD)

 ## Policy Recap The administration took a notable stance today by addressing tariff policies, which had a pronounced impact on market volatility. The U.S. Supreme Court issued a ruling related to tariffs, which effectively altered the landscape for import duties and trade enforcement. This judicial decision has implications for ongoing trade disputes and tariff enforcement, signaling potential shifts in trade policy execution. The administration's response emphasized recalibrating tariff strategies, aiming to balance trade protection with market stability. Congressional activity was relatively subdued but focused on oversight of trade and economic policies, with some lawmakers expressing concerns about the tariff ruling’s economic consequences. Discussions around potential legislative adjustments to trade enforcement and tariff frameworks were hinted at, though no immediate legislation was passed. The market digested these developments cautiously, with investors weighing the implications of a less aggressive tariff regime against the backdrop of ongoing geopolitical tensions. Throughout the session, policy news related to tariffs and trade enforcement was a key driver of market sentiment. Early session volatility gave way to a more measured rally as investors interpreted the Supreme Court ruling as a moderating influence on trade tensions. The administration’s subtle recalibration of trade policy was seen as supportive of economic growth prospects, helping to stabilize investor confidence. ## Market Reaction The broad market responded positively to the policy developments, with the S&P 500 (**SPY**) closing up 0.68% at $692.01, recovering from a modest opening at $690.18 and trading within a range of $690.10 to $693.68. The Nasdaq 100 (**QQQ**) led gains with a 1.13% advance to $614.71, reflecting strong investor appetite for technology stocks amid easing trade concerns. The Dow Jones Industrial Average (**DIA**) also advanced 0.40% to $493.74, while the Russell 2000 (**IWM**) posted a smaller gain of 0.32%, indicating broad-based risk-on sentiment. Bond markets showed slight weakness, with the 20+ Year Treasury ETF (**TLT**) dipping 0.06% to $89.85, as investors moved out of safe-haven assets in favor of equities. The U.S. dollar index (**UUP**) edged down 0.11% to $27.08, pressured by the tariff ruling and expectations of a more accommodative trade environment. Oil prices softened, with the United States Oil Fund (**USO**) falling 1.03% to $79.93 amid ongoing geopolitical uncertainties and anticipation of upcoming nuclear talks between the U.S. and Iran. Intraday swings were evident following the Supreme Court tariff ruling and subsequent administration commentary. Initial market jitters gave way to a rally as investors reassessed the likelihood of reduced trade frictions. Overall, risk sentiment improved, with investors favoring growth-oriented sectors and technology names, reflecting optimism about the easing of trade-related headwinds. ## Sector Scorecard - **Financials (XLF):** The financial sector outperformed, rising 1.53% to $51.76. The tariff ruling reduced concerns about trade-related economic disruptions, benefiting banks and financial services firms sensitive to economic growth and credit conditions. - **Technology (XLK):** Technology led sector gains with a 1.43% increase to $142.32. The easing of tariff tensions and positive earnings from AI-related companies bolstered investor confidence in tech growth prospects. - **Energy (XLE):** Energy lagged, declining 0.44% to $54.86. Oil price weakness amid geopolitical uncertainties and the tariff ruling’s potential impact on energy demand weighed on the sector. - **Industrials (XLI):** Industrials fell 0.78% to $175.60, pressured by concerns over supply chain disruptions and tariff uncertainties despite the ruling. - **Healthcare (XLV):** Healthcare was largely flat, down 0.08% to $157.75, reflecting mixed earnings and limited direct impact from the policy news. ## Winners & Losers ### Today's Policy Winners - **$AXON** +17.56% – Benefited from administration emphasis on AI and technology innovation, aligning with the company’s AI-driven law enforcement tools. - **$COIN** +11.76% – Gained on positive regulatory signals and stablecoin growth potential amid clearer crypto policy outlook. - **$CRCL** +32.64% – Surged following strong earnings and favorable market positioning in the stablecoin space, supported by policy clarity. - **$ACHC** +21.54% – Healthcare services provider rallied on expectations of supportive healthcare policy and funding stability. - **$FICO** +5.97% – Financial technology firm boosted by easing trade concerns and positive economic outlook. ### Today's Policy Losers - **$AI** -21.44% – Suffered from investor rotation away from speculative AI plays amid policy uncertainty and profit-taking. - **$ALLT** -29.56% – Fell sharply due to tariff-related supply chain concerns and cautious guidance amid regulatory scrutiny. - **$MGPI** -20.50% – Impacted by tariff uncertainties affecting input costs and export markets. - **$IBRX** -16.72% – Healthcare stock declined on mixed policy signals regarding Medicaid funding and healthcare reforms. - **$FSLR** -13.65% – Solar energy company hit by tariff concerns and weaker demand outlook linked to policy shifts. ## Tomorrow's Policy Calendar - Congressional committee hearing on trade enforcement and tariff policy oversight. - Scheduled speech by the Treasury Secretary on economic growth and trade strategy. - Pending executive order expected on data center energy efficiency and AI infrastructure. - Senate vote on bipartisan legislation addressing supply chain resilience. - Key risk factor: Potential escalation in U.S.-Iran nuclear talks impacting energy markets.