👀 The Supreme Court Just Blinked — And the Market Ripped

Markets came into this week carrying some bruises — tech and software have been quietly bleeding out for weeks as the AI disruption trade picks apart entire sectors — but Friday delivered a plot twist nobody saw coming. The Supreme Court struck down most of Trump's sweeping tariff policy, and Wall Street exhaled. The S&P 500 finished the week up about 0.7%, and the Nasdaq snapped a five-week losing streak, gaining more than 1%. Not a blowout, but a reset. Under the surface though, the rotation story is getting louder — and the divergence between winners and losers is as wide as it's been in years. And while most traders were focused on tariff headlines and Fed minutes, KKR's own CEO quietly walked into the open market and bought $12.8 million of his own stock.

Author

silas peters
February 22, 2026

Good afternoon and happy Sunday! Here is a quick market rundown and an ‘inside’ peek behind the curtains of what C-Level Execs, Wall St. Hedge Fund Gurus, and politicians are trading right now…!

📊 Market Recap — Week Ending February 20, 2026

Market Performance

The S&P 500 gained about 0.7% on the week. The Nasdaq snapped a five-week losing streak, finishing up more than 1%. The Dow eked out a 0.1% gain. The big catalyst: the U.S. Supreme Court struck down most of Trump's tariff policy under the International Emergency Economic Powers Act, ruling that the law does not authorize the President to impose tariffs — sending stocks sharply higher into Friday's close. The VIX settled around 20.60.

🔑 Key Drivers & Dynamics

🤖 1. The AI Disruption Trade Went Broad The AI displacement trade neared peak pessimism, with panic selling moving systematically through industries — insurance brokers, wealth managers, real estate services, and transportation and logistics — as fears resulted in a "sell first, ask questions later" environment. This wasn't just a tech story anymore. The market was repricing entire sectors on the assumption that AI eliminates the business model — not just disrupts it.

💻 2. Magnificent Seven Under Pressure — With Exceptions Big tech continued to feel the heat — NVDA and AAPL shed ground early in the week, while GOOG and META also faced selling pressure. The notable exception was mid-week, when Nvidia shares advanced after Meta announced it would use millions of Nvidia chips in its data center buildout, and Amazon moved higher after regulatory filings showed Bill Ackman's Pershing Square grew its stake by 65%.

🌡️ 3. Inflation Gave Bulls an Early-Week Boost Inflation came in at 2.4% in January — its lowest reading since May and a bigger slowdown than economists expected. Core inflation fell to 2.5%, its lowest print since March 2021. The data provided a solid foundation early in the week before tariff news took over the narrative by Friday.

🏦 4. Fed Minutes Threw a Curveball Minutes from the Fed's last meeting showed that several officials suggested the central bank may need to raise rates if inflation stays above their goal — a hawkish tone that complicated the rate-cut narrative traders had been leaning on heading into the week.

⚖️ 5. Supreme Court Strikes Down Tariffs — Markets Rip Friday's session was the week's defining moment. The Supreme Court ruled that Trump's sweeping tariff program exceeded presidential authority under the International Emergency Economic Powers Act. Markets responded immediately — stocks surged, the Nasdaq led the charge, and the week's tone shifted from cautious to cautiously optimistic heading into the weekend.

🛡️ 6. Defensive Rotation Still in Play Even with Friday's relief rally, the underlying rotation story didn't disappear. Utilities, materials, and real estate continued to attract defensive money throughout the week, while financial services and information technology remain under pressure from the AI disruption narrative.

📌 Key Takeaways

😰 Fear may be overdone. JPMorgan strategists see potential for a sustained rebound based on an overly bearish outlook on AI disruption and solid fundamentals. Jefferies analysts noted that 42% of the 64 software stocks they cover are trading at or near historical low valuations.

📉 Valuations are compressing fast. The S&P North American software index traded below 20 times forward earnings for the first time, even as earnings expectations for the software and services subsector remain broadly intact — with projected earnings growth of roughly 14% in 2026.

🥇 Gold is having a moment. Gold ETFs saw $19 billion in inflows in January 2026 — the highest monthly total in history — as macro uncertainty continues to drive demand for hard assets even as equities stabilized.

🕵️ Insiders are buying while retail is selling. This is the signal worth watching. When the people with the most to lose start writing eight-figure checks on the open market, that's not noise — that's conviction.

👀 What We’re Watching Next Week

⚖️ Tariff Legal Fallout — The Supreme Court ruling sent shockwaves Friday, but the legal and political response is just beginning. Watch for legislative maneuvering, appeals, and any executive response. This story isn't over — it's just entering a new chapter.

🎙️ Fed Speak — With hawkish minutes still fresh and inflation trending cooler, the next round of Fed commentary will be critical. Any dovish pivot in language could add fuel to the relief rally that started Friday.

📱 Software & AI Earnings — The sector is beaten up and at historically low valuations. Any earnings beat from a major software name could trigger a meaningful bounce. Watch how the market reacts to guidance language around AI disruption specifically.

📈 10-Year Treasury Yield — The 10-year yield is hovering right around 4%, a level that has been rejected roughly a dozen times since the peak of the hike cycle. How it behaves here will set the tone for risk assets heading into March.

⚡ SPX Volatility — VIX holding above 20 keeps premium elevated — which is good news for systematic income traders. Watch for any accelerated mean reversion move if the tariff relief rally has legs into next week.

👀 KKR and Financials — KKR has declined over 22% in the past 30 days despite record assets under management above $740 billion. With the CEO and multiple directors now buying aggressively on the open market, financials could lead any recovery if the AI disruption narrative continues to soften.

Insider spotlight of the week…#KKR

Here is a snapshot of last week’s recent insider activity…

Politicians

C-Level Execs

Hedge Funds

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