This week’s market action was shaped by a major macro headline — a U.S. Supreme Court ruling invalidating former President Trump’s sweeping tariff regime — and how markets digested that alongside hawkish rate commentary and rotation in sector leadership. Early in the week, elevated Treasury yields and hawkish Fed remarks pressured growth and tech names. But later, the tariff ruling and softer sentiment on inflation helped stocks stabilize and rally into the weekend. Consumer and discretionary sectors showed relative strength, semiconductors held up, and traders were reminded again that macro headlines can both shake and shake out positions if you’re not disciplined. Below are five market highlights, trader psychology takeaways, and my tactical plan for next week.
Market Highlights (5)
1. Supreme Court strikes down Trump tariffs
In a 6–3 decision, the U.S. Supreme Court ruled that former President Trump lacked authority under the International Emergency Economic Powers Act to impose broad tariffs, creating policy uncertainty and economic implications.
Source: https://apnews.com/article/0485fcda30a7310501123e4931dba3f9 (AP News)
2. Stocks finish week strong on tariff news
U.S. stock indices closed the week higher after the tariff ruling, snapping recent weakness as traders reevaluated cyclical and growth positioning.
Source: https://www.investopedia.com/stock-market-today-dow-jones-s-and-p-500-02202026-11910464 (Investopedia)
3. Hawkish commentary pressured markets early
Fed officials reiterated that rate cuts are not imminent, keeping bond yields elevated and pressuring rate-sensitive stocks early in the week.
Source: https://www.reuters.com/markets/us/us-stocks-week-ahead-rate-outlook-2026-02-20/ (Reuters)
4. Rotation into consumer discretionary and value
As yields moved and tariff uncertainty eased, some cyclical and consumer names outperformed pure growth, highlighting leadership rotation.
Source: https://www.marketwatch.com/markets/economy (MarketWatch)
5. Semiconductor sector remains resilient
Chip stocks continued to show relative strength through market swings, reinforcing semiconductors as a leadership theme.
Source: https://www.investors.com/market-trend/stock-market-today/ (IBD)
Trader Psychology & Improvement (5)
1. Stick to process, not headlines.
Big macro news can trigger knee-jerk reactions — discipline requires waiting for your setup criteria.
Source: https://www.investopedia.com/terms/t/trading-psychology.asp
2. Re-anchor regularly.
When markets chop around macro headlines, don’t anchor to old support/resistance — let price action reset your levels.
Source: https://www.investopedia.com/terms/b/behavioralfinance.asp
3. Volatility sizing matters.
Periods with headline risk require smaller sizes so losing trades don’t disrupt your edge.
Source: https://www.investopedia.com/articles/trading/09/position-sizing.asp
4. Avoid chasing post-news rebounds.
Even strong Friday rallies can roll over — wait for confirmation before committing capital.
Source: https://www.psychologytoday.com/us/basics/decision-making
5. Accept uncertainty as normal.
Markets rarely give perfect clarity — trade the structure that exists, not the one you wish existed.
Source: https://www.cfainstitute.org/en/research/foundation/2016/investor-behavior
How I’m Trading the Week Ahead
- Indices: Watch SPY & Nasdaq support levels; rotational strength could persist if macro softens.
- Tech & growth: Favor names with clear structure and confirmed volume.
- Rotation focus: Consumer discretionary, value, and semis may lead if rotation accelerates.
- Risk control: Keep max 2% risk per trade; tighten stops on macro-event days.
- Execution: Opening-range breakouts, clean pullbacks with confluence, trend alignment.
- Catalysts: Fed speakers, economic data releases, tariff policy follow-up stories.
- Careful on the choppy range there are huge candles and wick outs non stop right now. Do not chase anything. If you want to learn more about candle sticks check out the Primer i made on it. Candle Stick Charts Patterns.
Save this weekly trading roundup as your game plan heading into the new week. Macro headlines — like the tariff ruling — can move markets quickly, but your edge comes from structure, discipline, and repeatable execution. If you want a systematic, rules-based approach with live mentorship and real-time breakdowns, the 60-Day Trading Bootcamp is where we turn weekly insights into consistent execution.
If you are a trader struggling with your risk management. Check out the blog I wrote that dives deep into how Pro Traders manage their risk!
👉 https://bullsonwallstreet.com/live-60-day-bootcamp/
About Kunal Desai
Kunal Desai is the CEO and founder of Bulls on Wall Street. A professional trader since 2008, he has navigated every major market cycle—from the 2008 financial crisis to today’s high-volatility environments. Having mentored thousands of students through over 79 intensive trading bootcamps, Kunal is dedicated to teaching real-world execution and high-probability strategies. Based in Miramar Beach, Florida, he balances the intensity of the trading desk with a focus on fitness, family, and performance cars.
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