CNBC Business News Update Market Open: Stocks Higher, Supreme Court Rules Against The Trump Tariffs, Economic Growth Slips, PCE Inflation Comes In Hotter Than Expected 2/20/26
Feb 20, 2026
JB McCuskey, West Virginia Attorney General, speaks on a lawsuit alleging Apple failed to scan iCloud for child sexual abuse images. Rick Santelli, market commentator, and Aditya Bave, Bank of America economist, discuss weak Q4 GDP, mixed market moves, a hotter PCE inflation print, and divergent consumer spending trends across income groups.
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Weak Q4 GDP Missed Expectations
- Fourth-quarter U.S. GDP growth came in much lower than expected at 1.4%, missing forecasts around 2.8%.
- The shortfall may reflect the government shutdown last fall and other temporary factors affecting activity.
PCE Inflation Runs Hotter Than Target
- The PCE inflation gauge rose to 2.9% year-over-year, above the Fed's 2% target.
- Higher inflation keeps policy-makers' inflation concerns alive despite mixed growth signals.
K-Shaped Consumer Recovery
- Consumer strength is uneven: higher-income households are accelerating spending while lower-income cohorts struggle.
- Bank of America card data show a K-shaped recovery with gains concentrated at the top.