Halftime Report Podcast Summary
Episode: The SCOTUS Tariff Decision Fallout
Date: February 23, 2026
Host: Scott Wapner
Guests/Contributors: Jim Leventhal, Joe Terranova, Bryn Talkington, Jason Snipe
Episode Overview
This episode of CNBC’s Halftime Report focuses on sharp market declines at the outset of a critical trading week, driven primarily by the ongoing fallout from the recent Supreme Court (SCOTUS) tariff ruling and heightened political tensions. The panel dissects the market’s reaction to policy uncertainty, especially around tariffs, implications for various sectors, and the critical upcoming Nvidia earnings. Also covered: the risks in private credit markets, software’s continued slide, and standouts/opportunities among individual stocks.
Key Discussion Points & Insights
1. SCOTUS Tariff Ruling Fallout and Market Reaction
- Market in Turmoil: Dow down 700+ points, major indices off by >1%; stocks that saw relief last week plunged again, especially in financials, private equity, and discretionary sectors.
- Political Uncertainty: President aggressively attacking the Court’s ruling, threatening higher tariffs, which stirs market anxiety.
- Quote:
"What we're seeing today, Scott, is some of the other issues that were pretty big last week, continuing concerns about private credit. I think that's what's hanging on to the financials in particular."
— Jim Leventhal [02:15] - Short-term vs. Long-term: Tariffs cap at 15% brings eventual certainty, but global compliance questions linger.
2. Investment Committee’s Tariff-Related Portfolio Moves
-
Bryn Talkington exited Nike and On Holding following the SCOTUS decision:
"When you have a thesis that doesn't work out, I like to move on... There's a downward pressure on these two names because I think tariffs are going nowhere fast."
— Bryn Talkington [04:11] -
Joe Terranova: Concerns about the constantly shifting policy landscape—mentions rapid escalation from 10% to 15% tariffs and ongoing threats of further levies.
"There is concern about what the story is going to be...just uncertainty about will there be tariff refunds, what does that look like?"
— Joe Terranova [05:26]
3. Mega Caps and Upcoming Nvidia Earnings
- Market Leadership at Stake: If ‘Mag 7’ (mega-cap tech stocks) can’t stabilize markets, the rest’s not expected to save the day.
- Nvidia is the key near-term catalyst; much of market sentiment rides on the company's upcoming report.
- Quote:
"Nvidia is incredibly important. In the last two quarters it really hasn't had the follow through... The hope is that something different in terms of the price reaction can occur."
— Joe Terranova [07:58] - Valuation Discussion:
"The bar is high...But the valuation on Nvidia has come way, way down. This is now a fairly cheap stock. None of this says how the stock is going to react...That's really the tell."
— Jim Leventhal [09:55] - What’s Priced In?:
"What's priced in? It's not going to be a surprise when they have 65 to 70% earnings growth. To me it comes down to we know the numbers are going to be great...I think this is all priced in."
— Bryn Talkington [11:13]
4. Software’s Persistent Slide & Portfolio Pain
- Indiscriminate Selling: Software stocks are suffering, with indices like IGV at new lows and companies like Snowflake, CrowdStrike, and Adobe all hit hard.
"IGV is a new 52 week low today...Snowflake obviously hasn't traded well this year."
— Jason Snipe [15:20] - Cybersecurity Rout: Even groups thought “immune,” like cyber, are under pressure after negative headlines.
"Every time Anthropic sneezes, another asset class goes down."
— Bryn Talkington [22:42] - Risk Management Approaches:
"You don't want to turn a winning trade into a losing trade. The stop was elected early this morning and I now have no cyber exposure, whether personally or in the ETF."
— Joe Terranova [20:05] - Investment Rules:
"You never sell a stock making new 52 week highs and you never buy a stock making new 52 week lows. Which all of these stocks are. So while I want to add to this, I'm going to wait."
— Bryn Talkington [22:42]
5. Private Credit Anxiety and Retail Risk
- Industry Insider Warning: Lloyd Blankfein warns about the risks of selling opaque, less-liquid private credit to retail investors:
"These securities are opaque and may be riskier than most, but ...if individuals lose money...it's terrible. ...It's so short sighted of these guys to get into it."
— Lloyd Blankfein (per Scott Wapner) [39:14] - Panel Perspective: The shift away from bank lending post-GFC explains private credit's rise, but liquidity/education risks for retail are real.
"Clients have to be educated. They have to understand the risks...But this is an economy ...growing. We have low unemployment. We have a Fed that's projected by the markets to cut twice more. That's not the environment in which a systemic credit crisis..."
— Jim Leventhal [42:45] - Retail exposure to private credit has grown to 13% worldwide, largely because of new fund structures and diversification needs (Leslie Picker’s report) [41:21].
6. Defensive Plays, Health Care, and Stock Picks
- Health Care as Safe Haven:
"Health care, overall, as a sector is I believe one of the favorite sectors for investors...it gives you a little bit of the defensive, gives you a little bit of the offense."
— Joe Terranova [24:35] - Upgrades and Opportunities:
- CBRE Group: Upgraded by UBS due to AI opportunities and cost savings, highlighted as a buy by Bryn Talkington [28:13].
- Monolithic Power and Texas Instruments: Joe prefers Monolithic Power for its enterprise data positioning [29:52].
- Off-price Retailers: TJX, Ross, Burlington all reiterated as top picks by Joe [30:57].
- Disney: Jim calls it “dead money” but too cheap to sell [31:26].
7. ETF Trends and Investor Behavior
- Retail vs. Institutional Flows: Institutions focusing on core/simple ETF strategies; retail pushing into niche, single-stock, and thematic ETFs (per ETF Action’s Mike Aikens, ETF Edge segment) [34:44].
- Quote:
"60% of all ETFs is owned by institutions... But single stock and thematic trends are being driven by retail."
— Mike Aikens [35:30]
8. Market Technicals and Sentiment (Mike Santoli’s Midday Word)
- Current Mood: Market facing “incremental caution.” Software’s rout spreading to adjacent growth groups; defensive rotation into healthcare/staples is “desperate, but...working to limit the damage.”
- Market’s internal volatility is high, but the broader S&P 500 only just above YTD lows [45:46].
Timestamps for Key Segments
| Segment | Timestamp | |---------------------------------------------------|------------| | Market overview and tariff impacts | 00:55–06:36| | Tariff strategy (Nike/On Holding exit) | 04:11 | | Mega cap tech/Nvidia earnings setup | 06:36–11:13| | Software, data, Microsoft vs. Adobe debate | 12:23–19:26| | Cybersecurity/crowdstrike exit | 20:05–21:18| | Private credit risk, Blankfein warning | 39:14–44:57| | Defensive sector/healthcare & stock calls | 24:35–31:47| | ETF trends—retail vs. institutional | 34:44–37:45| | Technical perspective by Mike Santoli | 44:57–46:31|
Notable Quotes & Memorable Moments
-
On Market Mood:
"A market that's spinning all over the place ... I'm looking to limit damage. ...It really is about playing defense."
— Joe Terranova [06:36] -
On Risk Management:
"You don't want to turn a winning trade into a losing trade. ...Price is really the determining factor as it relates to my ability to stay in these trades."
— Joe Terranova on selling CrowdStrike [20:05–20:41] -
On Caution/Software Capitulation:
"At some point...maybe this turnaround ...ain't going to happen and that the market is actually getting something right."
— Scott Wapner to Jim Leventhal on Adobe [18:38] -
On Defensive Health Care:
"Clearly Lilly with a very significant market cap affords you a very comfortable weighting."
— Joe Terranova [25:24] -
On Private Credit Retail Risks:
"If individuals lose money or insurance companies or real businesses lose money, it's terrible. ...So short sighted...for that reason."
— Lloyd Blankfein (quoted by Scott Wapner) [39:14]
Overall Tone & Takeaways
The panel is defensive and cautious—uncertainty on a macro/policy scale is infecting nearly all sectors. The mega-cap leadership is crucial and Nvidia's earnings are seen as a possible—but not guaranteed—catalyst for stabilization. Panelists are actively re-allocating, cutting losses, and generally not chasing falling knives in troubled names. Private credit’s retail encroachment draws serious warnings. Health care and selective real estate, retailers, and industrials appear relatively safer. Education and risk management, for both professionals and regular investors, are stressed throughout.
This episode provides a snapshot of the cautious, risk-aware approach required during periods of high market and policy uncertainty, and illustrates how experienced investors adapt quickly when fundamental or macro theses no longer hold.