Tech Weekly: Stocks Rally After SCOTUS Ruling on Trump’s Tariffs

This week’s tech sector performance

The US market kicked off the holiday‑shortened week with many tech stocks opening lower after Alibaba (NYSE:BABA) unveiled its new AI model, Qwen 3.5, on Monday (February 16), amplifying concerns about risks from the Chinese market. Major indices closed little changed after a day of subdued trading.

This caution, she added, is compounded by uncertainty in the broader macro backdrop, driving down stocks in AI‑exposed sectors. She concluded that this process reflects a maturing market, predicting that in 2026, capital will concentrate around firms with clear, monetizable AI strategies.

Futures gained ground on Wednesday morning (February 17) ahead of the release of the FOMC minutes from its latest meeting, which highlighted a divide: some participants favored another rate hike if inflation remains above target, directly contradicting market expectations of additional cuts amid forecasts of economic weakness.

Also on Wednesday, Federal Reserve Governor Michael Barr outlined three potential scenarios for how AI could impact the labor market during a speech at the New York Association for Business Economics.

The first, and currently favored, scenario is gradual adoption, where slow AI integration minimizes job loss and any brief skill mismatch is addressed through training. The second scenario is rapid advancement, where AI outpaces the labor market, potentially rendering many people “unemployable.” In this case, fast‑moving AI startups could displace older firms, triggering mass unemployment and requiring a complete overhaul of the social safety net to share productivity gains.

The third possibility suggests that electricity or capital shortages will limit AI’s full potential, making it an indispensable tool but not a truly revolutionary force. Barr concluded that the degree of disruption will ultimately depend on societal investment in creating new jobs, training workers, and implementing mitigation strategies.

Stocks rallied midday but pulled back in a late‑session softening tied in part to the release of the FOMC minutes. A volatile session in tech saw the Nasdaq Composite (INDEXNASDAQ:.IXIC) pare earlier strength, finishing up 0.8 percent.

On Thursday (February 19), the market retraced the mid‑week bounce, with the Nasdaq closing down 0.3 percent.

Friday’s PCE report suggested inflation could be reigniting, keeping rate‑sensitive equities range‑bound in early trading, but the Supreme Court’s decision to strike down US President Trump’s global tariffs caused a rally in Wall Street’s heavyweights in the afternoon.

3 tech stocks moving markets this week

1. Shopify (NYSE:SHOP)

Shopify led NDXT gainers, advancing 14.73 percent. Phillip Securities upgraded the stock to “Strong‑Buy”.

2. AppLovin (NASDAQ:APP)

AppLovin saw a 14.68 percent gain, extending its post‑earnings rally.

2. DoorDash (NASDAQ:DASH)

DoorDash advanced by 9.36 percent after Bank of America (NYSE:BAC) raised its price target to U$272, citing AI and chatbot efficiencies as well as grocery expansion, while Citizens analyst Andrew Boone reiterated “market outperform” on strong order growth and unchanged 2026 EBITDA outlook.

Shopify, DoorDash and AppLovin performance, February 16 to 20, 2026.

Chart via Google Finance.

Top tech news of the week

Tech ETF performance

Tech exchange-traded funds (ETFs) track baskets of major tech stocks, meaning their performance helps investors gauge the overall performance of the niches they cover.

This week, the iShares Semiconductor ETF (NASDAQ:SOXX) advanced by 1.83 percent, while the Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ) advanced by 1.77 percent.

The VanEck Semiconductor ETF (NASDAQ:SMH) also increased by 1.76 percent.

Tech news to watch next week

Next week, tech‑focused investors will be watching NVIDIA’s Q4 print on February 25 as the key driver of sentiment across semiconductor and other AI‑related names.