New York, Feb 18, 2026, 16:07 EST — After-hours
- Investors shifted back into megacap tech, lifting the Dow to a higher close after a bout of AI nerves.
- Nvidia advanced along with other chip-related stocks, but some software and cybersecurity names moved the opposite way after issuing guidance.
- The timing of potential rate cuts remained a question after the Fed released its minutes, with major U.S. data set for Thursday and Friday still on the horizon.
The Dow Jones Industrial Average finished up 89.86 points, or 0.18%, at 49,623.05 on Wednesday, with a bounce in major tech names overshadowing stronger Treasury yields. The S&P 500 closed 0.45% higher, while the Nasdaq tacked on 0.69%. U.S. crude jumped 4.59% to settle at $65.19 a barrel. The 10-year yield crept up to roughly 4.083%. “It’s a nice change to see tech take back the baton,” said Ryan Detrick, chief market strategist at Carson Group. (Reuters)
That shift is significant—the market hasn’t figured out if the AI surge is fueling a genuine growth narrative or just a capex aftershock. A couple quiet sessions won’t settle the debate, though it’s enough to lure buyers back into the stocks responsible for those index jolts.
Rate expectations form the other key pivot here. Investors might be hoping for looser policy, yet they also need to see the Fed convinced inflation is easing on its own—something that rarely moves in a simple pattern.
Nvidia climbed around 2% after announcing a multi-year agreement to supply Meta Platforms with millions of its AI chips, both current and upcoming models. Meta shares, however, barely budged. Amazon picked up 2.3%, Alphabet was up 0.7%. Storage stocks saw a bump too—Sandisk, Western Digital, and Seagate all rallied, gains ranging from 2% to 6.2%, which helped push the Philadelphia semiconductor index up by 1.3%. Over in software, Cadence Design Systems surged 9% after topping quarterly revenue forecasts, while Palo Alto Networks dropped 6.7% on a trimmed annual profit outlook. Business spending data and fourth-quarter growth numbers were solid. “Weakness in tech was bound to bring in the marginal buyer,” said Ross Mayfield, investment strategy analyst at Baird. (Reuters)
According to the Fed’s minutes, almost every official agreed to keep the policy rate between 3.50% and 3.75% at their January meeting. The room, however, was divided over the next move. Some signaled they’d back additional hikes if inflation sticks around, while a different group is still looking for cuts later in the year. Investors aren’t expecting changes until the June 16-17 gathering, penciling in quarter-point cuts both then and in September. The Fed returns March 17-18 and will release fresh forecasts; a quarter-point move equals 25 basis points. (Reuters)
Nvidia says its deal with Meta involves not just its existing Blackwell chips but also the upcoming Rubin series, plus Grace and Vera processors tailored for data centers. Ian Buck, who heads up Nvidia’s hyperscale and HPC group, claims the Grace chips can lower energy consumption for certain database tasks, adding that initial Vera tests are “very promising.” The timing coincides with Meta’s in-house AI chip push and its talks with Google about potentially adopting TPUs for some AI work. (Reuters)
The rally’s not built for shocks in rates. A hotter inflation print sends yields higher—and valuations can get squeezed quickly. There’s little cushion in the AI trade for that kind of move.
Next session, we’ll see if tech’s rally on Wednesday was genuine buying or just traders unwinding crowded positions. The Dow usually handles small jolts, though it tends to flinch when rates reprice abruptly.
Thursday, investors will be watching for weekly initial jobless claims, the Philadelphia Fed survey, and the December U.S. trade balance, all slated for release at 8:30 a.m. ET. Pending home sales numbers follow at 10 a.m. ET. On Friday, the December PCE deflator — the Fed’s go-to inflation metric — lands at 8:30 a.m. ET, bundled with personal income and spending figures plus a fourth-quarter GDP update. February PMI readings arrive later, at 9:45 a.m. ET. (Tradingcharts)
