{"id":58873,"date":"2026-02-20T17:38:15","date_gmt":"2026-02-20T21:38:15","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/us-markets-rally-as-supreme-court-limits-tariff-powers-microsoft-names-new-xbox-head\/58873\/"},"modified":"2026-02-20T17:38:15","modified_gmt":"2026-02-20T21:38:15","slug":"us-markets-rally-as-supreme-court-limits-tariff-powers-microsoft-names-new-xbox-head","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-rally-as-supreme-court-limits-tariff-powers-microsoft-names-new-xbox-head\/58873\/","title":{"rendered":"US Markets Rally as Supreme Court Limits Tariff Powers; Microsoft Names New Xbox Head"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-rally-as-supreme-court-limits-tariff-powers-microsoft-names-new-xbox-head\/58873\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-rally-as-supreme-court-limits-tariff-powers-microsoft-names-new-xbox-head\/58873\/#Markets_Rally_on_Supreme_Court_Tariff_Ruling\" >Markets Rally on Supreme Court Tariff Ruling<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-rally-as-supreme-court-limits-tariff-powers-microsoft-names-new-xbox-head\/58873\/#Geopolitical_Tensions_Drive_Oil_Higher\" >Geopolitical Tensions Drive Oil Higher<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-rally-as-supreme-court-limits-tariff-powers-microsoft-names-new-xbox-head\/58873\/#Microsoft_Announces_Xbox_Leadership_Change\" >Microsoft Announces Xbox Leadership Change<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-rally-as-supreme-court-limits-tariff-powers-microsoft-names-new-xbox-head\/58873\/#Fed_Outlook_and_Economic_Data\" >Fed Outlook and Economic Data<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-markets-rally-as-supreme-court-limits-tariff-powers-microsoft-names-new-xbox-head\/58873\/#OpenAI_Safety_Concerns\" >OpenAI Safety Concerns<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Major US indices closed higher<\/strong> following a <strong>Supreme Court ruling<\/strong> that restricted the executive branch&#39;s tariff powers, with the <strong>Nasdaq<\/strong> leading gains at <strong>0.87%<\/strong>.<\/li>\n<li><strong>Oil prices surged<\/strong> near a six-month high as geopolitical tensions escalated, with the <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a> administration reportedly weighing <strong>military action against Iran<\/strong>.<\/li>\n<li><strong>Microsoft (<a href=\"\/stock\/MSFT\">MSFT<\/a>)<\/strong> announced a leadership transition for its gaming division, appointing <strong>Asha Sharma<\/strong> to lead <strong>Xbox<\/strong> as <strong>Phil Spencer<\/strong> retires.<\/li>\n<li><strong>Federal Reserve official Musalem<\/strong> signaled that current monetary policy is &quot;well positioned,&quot; despite potential uncertainty following the latest judicial rulings on trade.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Markets_Rally_on_Supreme_Court_Tariff_Ruling\"><\/span>Markets Rally on Supreme Court Tariff Ruling<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>US stocks finished the week on a high note as investors reacted to a landmark <strong>Supreme Court<\/strong> decision curbing the tariff-setting authorities used by the <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a> administration. The <strong>Nasdaq Composite<\/strong> rose <strong>198.01 points (+0.87%)<\/strong> to close at <strong>22,880.73<\/strong>, while the <strong><a href=\"https:\/\/stockmarketwatch.com\/markets\/sp500\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a><\/strong> gained <strong>0.65%<\/strong> to finish at <strong>6,906.34<\/strong>. The <strong><a href=\"https:\/\/stockmarketwatch.com\/markets\/dowjones\/today.aspx\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average<\/strong> added <strong>206.56 points (+0.42%)<\/strong>, closing at <strong>49,601.72<\/strong>.<\/p>\n<p>The ruling led to a simultaneous slip in the <strong>US Dollar<\/strong> and <strong>Treasury bonds<\/strong>, as markets bet that fiscal strain might rise. However, sentiment was bolstered by reports from <strong>CNBC<\/strong> indicating that countries with existing trade agreements with the U.S. will see <strong>tariffs cut to 10%<\/strong>. While rates could rise later under new measures, the immediate reduction provided a reprieve for global trade outlooks.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Geopolitical_Tensions_Drive_Oil_Higher\"><\/span>Geopolitical Tensions Drive Oil Higher<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Crude oil<\/strong> prices remained near a <strong>six-month high<\/strong> on Friday as fears of supply disruptions intensified. Markets are closely monitoring reports that <strong>Donald Trump<\/strong> is considering military action against <strong>Iran<\/strong>, a move that could threaten the <strong>Strait of Hormuz<\/strong>, a critical chokepoint for global oil transit.<\/p>\n<p>The heightened risk of conflict has tightened global crude markets significantly. Analysts warn that any direct military engagement could lead to a rapid spike in energy costs, potentially complicating the <strong>Federal Reserve&#39;s<\/strong> efforts to maintain stable inflation levels.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Microsoft_Announces_Xbox_Leadership_Change\"><\/span>Microsoft Announces Xbox Leadership Change<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In corporate news, <strong>Microsoft (<a href=\"\/stock\/MSFT\">MSFT<\/a>)<\/strong> named <strong>Asha Sharma<\/strong> as the new head of <strong>Xbox<\/strong>, succeeding the retiring <strong>Phil Spencer<\/strong>. The move signals a strategic shift under CEO <strong>Satya Nadella<\/strong>, who is reportedly refocusing the division on <strong>console gamers<\/strong> after several years of prioritizing PC and mobile platforms.<\/p>\n<p>The leadership change comes at a pivotal time for the gaming industry as hardware cycles evolve. Investors will be watching to see if Sharma\u2019s appointment leads to a more aggressive approach in the hardware space to compete with traditional rivals.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Fed_Outlook_and_Economic_Data\"><\/span>Fed Outlook and Economic Data<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>St. Louis Fed President Alberto Musalem<\/strong> commented on the economic landscape Friday, stating that he does not yet see significant <strong>productivity gains<\/strong> in macro data. Musalem emphasized that he remains focused on <strong>PCE inflation<\/strong> and believes the current <strong>real Fed funds rate<\/strong> is at or below neutral, suggesting that policy is in a &quot;good place.&quot;<\/p>\n<p>Regarding the Supreme Court&#39;s tariff ruling, Musalem noted it could create a &quot;period of uncertainty.&quot; However, he suggested that if new tariffs are implemented on a one-for-one basis, they might not fundamentally alter the broader economic outlook. Meanwhile, the <strong>Federal Reserve&#39;s H.8 release<\/strong> showed <strong>US bank deposits<\/strong> increased to <strong>$18.764 trillion<\/strong> from $18.721 trillion the previous week, indicating continued growth in the banking sector.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"OpenAI_Safety_Concerns\"><\/span>OpenAI Safety Concerns<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A report from the <strong>Wall Street Journal<\/strong> revealed that <strong>OpenAI<\/strong> staff had previously raised concerns regarding the <strong>Canada shooting suspect<\/strong>. The individual had reportedly discussed <strong>gun violence<\/strong> within <strong>ChatGPT<\/strong> prior to the incident. The revelation is expected to reignite debates over the safety protocols and monitoring responsibilities of AI developers regarding potentially dangerous user behavior.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Major US indices closed higher following a Supreme Court ruling that restricted the executive branch&#39;s tariff powers, with 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