Key Points
- US markets closed higher, with the Dow up 0.47%, S&P 500 up 0.69%, and Nasdaq up 0.9%, driven by strength in tech giants like Google (+4%) and broad gains in European markets.
- Optical communications and mining sectors rallied significantly, with companies like Corning (+7%), Pan American Silver (+5%), and Hecla Mining (+5%) leading gains.
- Precious metals surged dramatically, with COMEX Silver Futures jumping nearly 9% and Gold Futures rising 2.65%, signaling demand for safe-haven assets amidst economic uncertainty.
- President Trump announced an additional 10% tariff on all global goods, effective within three days, following a US Supreme Court ruling against previous tariff policies.
- US GDP growth slowed to an annualized 1.4% in Q4 2025, intensifying recession warnings and prompting investors to seek defensive positions.
On February 20, 2026, US markets closed higher across the board, with precious metals experiencing dramatic volatility and trade uncertainty reshaping investor sentiment across global markets.
US Stock Indices Post Solid Gains
The three major US stock indices all moved into positive territory to close out the trading session.
- Dow Jones Industrial Average: +230.81 points (0.47%) to 49,625.97
- Standard & Poor’s 500 Index (Biaozhun Puer 标准普尔): +47.62 points (0.69%) to 6,909.51
- Nasdaq Composite Index (Nasidake Zonghe 纳斯达克综合): +203.34 points (0.9%) to 22,886.07
For the week, the performance showed similar momentum.
- Dow: +0.25%
- Nasdaq: +1.51%
- S&P 500: +1.07%
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Tech Giants Lead the Rally
Large-cap tech stocks demonstrated broad strength, with most names moving higher on the day.
- Google (Guge 谷歌) surged over 4%
- Netflix (Naifei 奈飞) and Amazon (Yamaxun 亚马逊) both rose more than 2%
- Apple (Pingguo 苹果), Nvidia (Yingweida 英伟达), and Meta each gained over 1%
- Tesla (Tesila 特斯拉) ended slightly higher
- Microsoft (Weiruan 微软) recorded a fractional decline
The strength in mega-cap tech signals continued investor confidence in the sector despite broader market headwinds.
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Optical Communications and Mining Sectors Hit New Highs
Two sectors stood out as clear winners on February 20: optical communications and mining stocks rallied broadly.
Optical Communications Standouts:
- Corning (Kangning 康宁) jumped over 7%
- Coherent rose more than 6%
- Lumentum recorded gains over 5%
Mining Sector Leaders:
- Pan American Silver (Fanmei Baiyin 泛美白银) surged over 5%
- Hecla Mining (He-ke-la Kuangye 赫克拉矿业) climbed over 5%
- Royal Gold (Huangjia Huangjin 皇家黄金) gained over 5%
The rally in mining stocks correlates directly with precious metals price spikes, particularly in silver.
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Chinese Concept Stocks Show Mixed Results
Major Chinese concept stocks traded with mixed momentum, with the Nasdaq Golden Dragon China Index edging down just 0.05%—suggesting relative stability despite broader market noise.
Winners:
- Pinduoduo (Pinduoduo 拼多多) gained 2.93%
- Nio (Weilai 蔚来) climbed 2.84%
- TSMC (Taijidian 台积电) rose 2.82%
- Futu Holdings (Futu Konggu 富途控股) advanced 1.22%
- JD.com (Jingdong 京东) moved up 0.51%
- Alibaba (Alibaba 阿里巴巴) saw a modest increase of 0.12%
Losers:
- Trip.com (Xiecheng 携程) dropped 1.39%
- Yum China (Baisheng Zhongguo 百胜中国) fell 1.81%
- Bitdeer Technologies Group slipped 2.02%
- Baidu (Baidu 百度) declined 0.91%
The mixed performance reflects sector rotation and selective investor appetite within the Chinese tech space, rather than broad panic.
European Markets Record Sweeping Gains
Across the Atlantic, European equity markets closed uniformly higher on February 20, continuing the global upside bias.
- UK FTSE 100: +59.85 points (0.56%) to 10,686.89
- France CAC40: +116.71 points (1.39%) to 8,515.49
- Germany DAX: +217.12 points (0.87%) to 25,260.69
The gains across three major European indices suggest broad-based investor optimism, even as policy uncertainty looms.
Precious Metals Explode Higher—Silver Jumps Nearly 9%
While oil prices dipped, precious metals experienced dramatic volatility on February 20, with silver stealing the spotlight.
- WTI Crude Futures: -$0.09 USD to $66.31 USD per barrel
- COMEX Gold Futures: +$132.60 USD (2.65%) to $5,130.00 USD per ounce
- COMEX Silver Futures: +$6.94 USD (8.93%) to $84.57 USD per ounce
The near-9% surge in silver represents a significant move for the commodity and signals investors are seeking safe-haven assets amid broader economic uncertainty.
What’s Driving the Market? Key Global News That Matters
Trump Announces 10% Global Tariff Hike—Trade Wars Heat Up
On February 20, President Trump announced plans to impose an additional 10% tariff on all global goods imported into the US, effective on top of existing rates.
The move came via executive order under Section 122 of the Trade Act of 1974 and follows a US Supreme Court ruling that found certain previous tariff policies illegal.
Timeline: The new 10% tariff is expected to take effect within approximately three days.
Why this matters: Tariff announcements create immediate market uncertainty and can trigger sector-specific volatility, particularly in manufacturing, automotive, and tech hardware.
US Supreme Court Strikes Down Previous Tariffs
The US Supreme Court ruled that large-scale tariff measures implemented by the Trump administration lacked clear legal authorization under the International Emergency Economic Powers Act.
This ruling essentially forced the administration’s hand to pursue new tariff authority through different legal channels—hence the Section 122 executive order announced the same day.
US GDP Growth Slows to 1.4%—Recession Warnings Intensify
The Bureau of Economic Analysis reported a sharp slowdown in US GDP growth to an annualized rate of 1.4% in Q4 2025.
Economists now warn that recession risk is higher than previously estimated, with specific concerns around:
- Tariff policies creating supply chain headwinds
- Government shutdowns reducing economic momentum
- Broader policy uncertainty dampening business investment
This weak GDP reading provides critical context for understanding why investors are buying safe-haven assets like gold and silver—fear of economic contraction is driving defensive positioning.
Meta Cuts Equity Incentives for Staff—Second Year in a Row
Meta Platforms has reduced equity incentives for the majority of its employees for the second consecutive year.
The Numbers:
- Current year: ~5% cut to annual stock option grants for tens of thousands of employees
- Previous year: 10% cut to equity compensation
The company is prioritizing heavy investment in artificial intelligence over employee compensation growth, signaling a strategic pivot that’s becoming industry-wide.
Private Equity Warns of “Multi-Car Pileup” in Software—AI Disruption Underestimated
David Sambur, co-head of private equity at Apollo Global Management (Aboluo Quanqiu Guanli 阿波罗全球管理), issued a stark warning about the software investment landscape.
Sambur cautioned that private equity firms are facing a “multi-car pileup” in software investments, noting that the industry failed to recognize early enough how Artificial Intelligence (Rengong Zhineng 人工智能) would disrupt traditionally safe software investment sectors.
Translation: Software companies that seemed like stable bets are now under existential pressure from AI-powered alternatives, creating a wave of underperforming portfolio companies across the private equity ecosystem.
The Bottom Line: What Investors Should Know
Market momentum remained positive on February 20, 2026, but the news backdrop reveals growing tensions between:
- Trade policy uncertainty (new tariffs incoming)
- Slowing economic growth (1.4% GDP growth)
- Sector disruption (AI reshaping software valuations)
- Safe-haven demand (silver up nearly 9%, gold up 2.65%)
The rally in optical communications and mining stocks, combined with precious metals surges, suggests investors are rotating into inflation-hedge and hard-asset plays ahead of tariff implementation.
Tech stocks remain resilient, but the equity incentive cuts at Meta and warnings from private equity about software disruption signal that not all tech is created equal in an AI-first economy.
Keep watching tariff timelines, GDP data, and sector-specific earnings—they’ll determine whether this market strength holds or cracks under policy uncertainty.
