The U.S. Supreme Court has limited President Trump's authority on tariffs, citing a 1977 law. However, the President retains other tools, such as Section 232 of the Trade Expansion Act, previously used for steel and aluminum import taxes.

Federal Reserve data shows its preferred inflation gauge, the personal consumption expenditures index, rose 0.4% in December, pushing the 12-month inflation rate to 2.9%. This indicates continued work is needed to reach the Fed's 2% inflation target.

U.S. GDP growth for the last quarter was reported at 1.4%, missing forecasts. This slower pace was partly attributed to the government shutdown, which President Trump estimated cost the economy at least two percentage points.

In international affairs, the U.S. has reportedly gathered significant air power in the Middle East. Negotiations with Iran over its uranium enrichment program saw some progress, though substantial differences remain. Concurrently, Iran reported a partial, temporary closure of the Strait of Hormuz, a critical oil transit route, amidst ongoing talks with the U.S.

The U.S. trade deficit widened, concluding the year with a shortfall of $901.5 billion, one of the largest on record since 1960.

Labor market signals remain positive, with jobless claims falling to a year-low of 206,000 for the week ended February 14, suggesting increased stability.

In the tech sector, fears surrounding AI spending are being reassessed. While hyperscalers plan a 60% increase in data center investment, reaching $650 billion this year, market selloffs have led some investors to shift focus from software to "real economy" sectors. Experts suggest opportunities exist in companies with proprietary data and undervalued segments.

U.S. industrial production saw its most significant increase in nearly a year, with manufacturing output rising 0.6%. This was supported by strong gains in business equipment and consumer goods, indicating solid capital investment.

Housing starts jumped 6.2% in December to 1.40 million units, the highest level in five months, signaling a rebound. Building permits also increased, though the sector faces headwinds from labor shortages and high mortgage rates.