Wall Street found itself in the eye of a financial storm this week, as a rare blizzard blanketed New York City and President Donald Trump’s abrupt decision to hike global tariffs to 15% sent shockwaves through the markets. On Monday, February 23, 2026, the Dow Jones Industrial Average plunged 800 points, or 1.6%, closing at 48,804.06, while the S&P 500 dropped 1.2% and the Nasdaq Composite fell 1.3%. The day’s losses were compounded by a foot of snow covering Wall Street, making the start of the week even more challenging for traders already on edge.
The market’s chilly reception was hardly surprising given the context. According to Benzinga, the stock market had closed the previous Friday on a high note, buoyed by a Supreme Court ruling that struck down President Trump’s earlier tariffs. That decision, grounded in the principle of separation of powers, found that the International Emergency Economic Powers Act (IEEPA) did not grant the president authority to impose tariffs unilaterally. The Dow Jones had gained 231 points to close at 49,625.97, the S&P 500 rose 0.69% to 6,909.51, and the Nasdaq Composite jumped 0.90% to 22,886.07. Most sectors finished higher, with consumer discretionary, communication services, and real estate stocks leading the charge, while energy and health care lagged behind.
But the weekend brought a dramatic reversal. President Trump, undeterred by the Supreme Court’s ruling, declared on Saturday that he would raise the global tariff rate to 15%, up from the 10% he had announced just a day earlier. He insisted the new duties would take effect immediately, though the specifics of implementation remained murky. Trump warned of even higher tariffs in the months ahead, vowing to penalize countries that "want to play games" with U.S. trade policy. The move, invoked under Section 122 of the Trade Act of 1974, allows the president to impose tariffs for up to 150 days without Congressional approval.
The response from international partners was swift and wary. European officials voiced deep concern, and the European Parliament announced Monday that it was pausing work on ratifying a major trade agreement with the United States. The uncertainty sent ripples through global markets, with gold prices surging more than 2% as investors sought safe havens, and spot gold futures rising more than 3%.
Tech stocks bore the brunt of the sell-off. IBM shares tumbled 13% after Anthropic revealed new programming capabilities for its Claude Code product, stoking fresh fears about artificial intelligence disrupting traditional software businesses. Microsoft shares dropped 3%, and cybersecurity firm CrowdStrike retreated nearly 10%. The anxiety wasn’t limited to tech: financial giants American Express and Mastercard lost 7% and nearly 6%, respectively. The jitters extended to sectors linked to trucking, logistics, commercial real estate, and financial services, all of which have suffered losses this month as speculation about AI-driven job losses intensified. A research paper from Citrini Research, widely circulated on Wall Street trading floors, warned the AI boom could drive unemployment as high as 10%—a prediction that rattled nerves across the financial landscape.
Not all corners of the market suffered equally. Defensive sectors, such as consumer staples, managed to buck the trend. Shares of Walmart and Procter & Gamble both climbed more than 2%, as investors rotated into safer bets amid the turbulence. Meanwhile, stocks like Wayfair and Nike, which had surged after the Supreme Court’s ruling, reversed course and ended Monday in the red.
The bond market also reflected the shifting winds. The yield on the 2-year Treasury note rose to 3.49%, while the 10-year yield increased to 4.07%, signaling that investors were demanding higher returns to compensate for mounting uncertainty. Bitcoin, often touted as a digital safe haven, didn’t escape the carnage either, tumbling below $65,000 and remaining down more than 4% as the cryptocurrency’s sharp sell-off continued.
Market sentiment, as measured by the CNN Money Fear & Greed Index, remained firmly in the “Fear” zone, with a reading of 42.6 on Friday, up slightly from 37.1 previously. The index, which ranges from 0 (maximum fear) to 100 (maximum greed), is based on seven equally weighted indicators. While the reading showed some easing, the prevailing mood was still one of caution.
Economic data only added to the unease. U.S. GDP expanded at a sluggish 1.4% annualized pace in the fourth quarter of 2025, a steep drop from the prior quarter’s robust 4.4% growth and well below economists’ expectations of 3%. December’s Personal Consumption Expenditures (PCE) index—the Federal Reserve’s preferred inflation gauge—rose 0.4% month over month, lifting the annual rate to 2.9%. Core PCE, which strips out food and energy, also increased 0.4% for the month, pushing the year-over-year rate to 3% and topping estimates.
Amid the financial drama, the East Coast was battered by a blizzard that led to thousands of flight delays and cancellations, further disrupting business as usual for traders and travelers alike. The snowstorm added a literal layer of difficulty to an already complicated market environment.
Looking ahead, investors and policymakers alike are bracing for more volatility. As Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, told Benzinga, “The big question for the economy is what happens after this window, and if the tariff policy stays down this path, we may very well be back at the Supreme Court later this year. The push and pull with tariffs is likely to be a distracting theme for markets for the remainder of the year, albeit with less volatility than the initial shock last April.”
For now, the only certainty seems to be uncertainty. The interplay between court decisions, presidential policy, and technological disruption has created a landscape where fortunes can change in the blink of an eye—or the fall of a snowflake. Investors, policymakers, and ordinary Americans will be watching closely as the story continues to unfold, hoping for clearer skies—both literally and figuratively—in the weeks ahead.