NEW YORK, Feb 17, 2026, 16:01 EST — After-hours
- Dow manages to finish just above flat after slipping earlier; tech bounces back late, though software stocks remain under pressure
- Banks propped up blue chips, but consumer staples slipped as demand signals came in weak.
- Investors are eyeing the Fed minutes set for Wednesday, with Friday’s PCE inflation numbers also on the radar.
The Dow Jones Industrial Average edged up 42.99 points, or 0.09%, to finish at 49,543.92 on Tuesday, capping a volatile session that had traders talking more about the sudden swings than any clear trend. The S&P 500 closed up 0.11%, while the Nasdaq managed a 0.14% gain, preliminary figures showed. “You just see spikes up and spikes down,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder. Reuters
The headline here is the flat finish. Investors are weighing whether this new surge in artificial intelligence rivalry actually helps productivity or just squeezes margins—a debate playing out while rate cuts remain possible, but haven’t happened yet.
Markets reopened Tuesday after the Washington’s Birthday holiday closed U.S. trading on Monday. Looking ahead, investors are watching for the Federal Reserve’s Jan. 27–28 meeting minutes, due out Wednesday at 2 p.m. ET.
The personal consumption expenditures (PCE) price index—closely watched by the Fed—lands Friday with the Bureau of Economic Analysis’ personal income and outlays report, set for release at 8:30 a.m. ET. The agency will also post its initial take on fourth-quarter GDP.
Chicago Fed President Austan Goolsbee told CNBC that “several more” rate cuts might be on the table this year, provided inflation shows a decisive move toward the Fed’s 2% goal. Still, he flagged that services inflation remains “not tamed.” Reuters
The downside scenario is close at hand. Fed Governor Michael Barr said keeping rates unchanged “for some time” will probably be the right call while policymakers watch new data. He described the risk of inflation stuck above 2% as “significant,” pointing to tariff impacts and a job market vulnerable to “negative shocks.” Reuters
Tech competition just ramped up. Alibaba rolled out its Qwen 3.5 AI model on Monday, touting its ability to handle complex tasks solo and offering lower operating costs than earlier versions. The move has turned up the heat on software and services stocks, giving investors fresh reasons to worry about intensifying rivalry.
Sectors reflected the day’s crosscurrents. Tech clawed its way out of the red, but consumer defensives lagged after a new demand warning kept pressure on the group.
General Mills slashed its yearly sales and profit outlook, sparking a wave of selling in packaged-food stocks. CEO Jeffrey Harmening pointed to “cost of living and housing pressures are reshaping spending patterns,” a comment that had traders moving further toward value products and stepping back from premium brands. Reuters
Activism and deal chatter kept surfacing, despite the major indexes mostly treading water. Elliott Management revealed it holds over 10% of Norwegian Cruise Line and is pushing for changes at the board level, arguing the company trails other cruise players. Truist Securities analyst Patrick Scholes weighed in, calling out that most of Norwegian’s issues lack an easy solution and won’t be sorted out quickly.
Danaher is set to acquire Masimo at $180 per share, valuing the deal at $9.9 billion. Masimo’s shares jumped, while Danaher slipped. J.P. Morgan analysts described the choice of Masimo as unexpected.
The Fed minutes hit Wednesday, with the PCE inflation data following on Friday. Investors want clarity on whether inflation is actually easing while growth holds steady — and whether the AI story remains a question of valuations or starts to affect the numbers that matter: earnings.
