New York, Feb 22, 2026, 10:31 EST — The market is closed.
- Trade headlines swing back into view for megacap tech as U.S. markets get back to business Monday.
- Alphabet investors are balancing the ongoing sensitivity to advertising cycles against the company’s hefty ramp-up in AI spending.
- Nvidia’s earnings, coming up later this week, mark the next big test for the AI-fueled rally.
Alphabet’s Class C shares, which don’t carry voting rights, climbed $11.29 to finish at $314.90 on Friday, up 3.7%.
The S&P 500 climbed 0.69%, while the Nasdaq added 0.90% after the U.S. Supreme Court’s 6-3 decision striking down President Donald Trump’s global tariffs, which he had imposed last year via an emergency law. Trump blasted the ruling, labeling it a “disgrace,” and pledged to enact a 10% global tariff for 150 days using Section 122 of the Trade Act of 1974. “Today is a removal of some uncertainty, and we’re on to the next phase,” said Mike Dickson, head of research and quantitative strategies at Horizon Investments. Reuters
Ad-driven stocks moved higher. Market research outfit eMarketer suggested some companies might channel tariff refunds into digital ad spending. Pinterest, Snap, Meta, and Google parent Alphabet all finished up for the day.
That’s a big deal for Alphabet: ads remain its main source of revenue. If businesses start worrying over expenses, marketing dollars can be quick to go on ice—though just as quickly, those budgets can bounce back.
Spending is the other drag here. Alphabet flagged a possible doubling of capital expenditures in 2026, with data centers and servers taking the lion’s share as the company gears up for more AI computing muscle.
The blend tends to leave the stock jumpy. Weakness in the economy pressures ad demand, while tighter funding conditions sap enthusiasm for backing projects with long payback times.
Friday’s rally doesn’t put trade worries to rest. The mood in tech—now a stand-in for risk appetite—could flip fast if a new tariff plan lands, fresh legal battles break out, or inflation proves stubborn.
U.S. markets are closed for the weekend. On Monday, investors will find out if the rally holds or gets sold off. Early action is likely to hinge on trade policy headlines.
Later this week, Nvidia steps into the spotlight. Its earnings now serve as a kind of barometer for the AI supply chain. Investors are feeling the tension, Reuters’ Morning Bid notes, with AI spending surging and only four customers accounting for the bulk of Nvidia’s sales.
Nvidia’s results call lands Wednesday, Feb. 25, at 2 p.m. Pacific, 5 p.m. Eastern. The stakes aren’t subtle for Alphabet: solid numbers from Nvidia could reassure investors on AI appetite and unlock more momentum for the megacaps. On the flip side, disappointment would reignite concerns about the pace—and size—of current investment.
