John Hancock: Weekly Market Recap Week Ended February 20

Tariffs ruling

In a 6-3 decision, the U.S. Supreme Court on Friday ruled that the Trump administration exceeded its legal authority last year when it imposed tariffs on imported goods from most of the nation’s biggest trading partners. The ruling didn’t appear to resolve whether the government must repay tariff revenue that it has already collected.

Inflation acceleration

The U.S. Federal Reserve’s preferred inflation gauge showed that prices rose at the fastest pace in nearly a year. Friday’s Personal Consumption Expenditures Price Index release showed that inflation rose in December at an annual rate of 2.9%—the highest since March 2024. The report came a week after another gauge, the Consumer Price Index, showed that inflation eased to 2.4% in January.

GDP slowdown

The U.S. economy expanded at a slower pace than expected at the end of 2025. GDP grew at an annualized rate of 1.4% in the fourth quarter, below economists’ consensus estimate of roughly 2.5% growth and far behind the third quarter’s 4.4% rate. One negative factor was a decline in federal spending amid the fourth quarter’s prolonged government shutdown.

Growth tops value

U.S. large-cap growth stocks narrowed their year-to-date performance deficit relative to their value counterparts, as a growth equity benchmark outperformed a value index. The growth benchmark, the Russell 1000 Growth Index, finished around 1.5% higher for the week, while the Russell 1000 Value Index added 0.7%.

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