Global stock market overview for the week of February 16-21, 2026 tilted slightly positive after a volatile stretch
🌍Global equities closed the week with a mild gain despite sharp swings during the week, as investor sentiment kept shifting between geopolitical concerns, Fed signals, and earnings season headlines. A clearer rebound emerged into the end of the week, helping the overall picture finish more balanced than the midweek pullbacks suggested.
🇺🇸 The main focus was the U.S., where major indexes including the S&P 500, Dow Jones, and Nasdaq all ended higher versus the start of the trading week. The key driver came on February 20, after the U.S. Supreme Court rejected President Trump’s broad tariff program, easing part of the trade-risk overhang and supporting risk appetite.
🇪🇺 Europe stayed near elevated levels but lacked a clear breakout trend, as support from banks and some cyclical names was offset by mixed earnings and concerns that interest rates may stay higher for longer. In Asia, trading was thinner due to Lunar New Year holidays, while Japan faced mild pressure after weaker GDP data.
🔄Capital flows remained selective, with continued pressure on parts of tech and software due to concerns over AI spending efficiency, while energy and some defensive sectors held up better. U.S. economic data still did not show a clear recession signal, but hawkish-leaning Fed minutes remained a constraint on a full risk-on shift.
⚠️The main risk to watch is still U.S.-Iran tension and its spillover into oil prices, as this could push inflation pressure higher again. Next week, markets will likely react strongly to PCE, GDP, and PMI data, so the current rebound will look more durable only if incoming numbers stay soft enough to keep policy expectations stable.
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