NEW YORK, Feb 18, 2026, 12:03 EST — Regular session
- The Dow edged up 0.26% early, lifted by tech and chip stocks moving higher.
- Fed minutes land at 2 p.m. ET. PCE inflation figures follow on Friday.
- Palo Alto Networks shares fell after the company lowered its full-year profit outlook.
Early Wednesday saw the Dow Jones Industrial Average climb, lifted by gains in megacap tech stocks. Investors looked ahead to the Federal Reserve’s minutes for new signals on U.S. interest rate policy. (Reuters: Reuters)
Why it matters now: Markets are on edge—investors are watching to see if high-priced AI investments deliver, and if persistent inflation keeps the Fed on guard. The minutes hit at 2 p.m. ET. After that, traders shift focus almost immediately to Friday’s key inflation data.
By 9:40 a.m. ET, the Dow had climbed 127.97 points to 49,661.16, up 0.26%. The S&P 500 ticked up 0.24%, while the Nasdaq Composite also posted a 0.24% advance.
Nvidia shares rose after the company announced a multi-year agreement to supply Meta Platforms with millions of AI chips—both existing models and those yet to debut. The move underscores how data center investments by major tech players remain robust.
“We have not really seen much of a drawdown, just a lot of daily volatility,” said Sam Stovall, chief investment strategist at CFRA. He added, the market still hasn’t found a decisive move either way.
Materials and energy stocks climbed near the top of the S&P sector leaderboard. Health care and consumer staples slipped to the back of the pack. Walmart slipped as well, with investors waiting on its Thursday earnings.
Earnings headlines sent some stocks swinging. Analog Devices climbed after its second-quarter outlook topped forecasts. Global Payments surged on a brighter annual profit projection. Moderna ticked higher, with the FDA set to take another look at its flu vaccine application.
Palo Alto Networks shares slid after the company cut its full-year profit outlook, signaling just how little patience investors have for weak guidance with market leadership growing more concentrated.
The Dow inched up 0.07% at Tuesday’s close, while the S&P 500 added 0.10%. Investors wrestled with AI’s promise—balancing potential gains against concerns about over-investment and possible job losses. (Reuters: Reuters)
Fed officials haven’t quieted the debate, either. Governor Michael Barr, for one, flagged the potential for AI to shake up the labor market in the near term. He also hinted that rate cuts aren’t likely to arrive soon, reinforcing the idea that policy could stay bumpy for a while.
The risk setup looks clear: Should the minutes sound more hawkish than markets anticipate, Treasury yields could climb, pressuring equity valuations—tech most of all. The same snap higher in yields could follow a stronger inflation print, and it wouldn’t take long.
All eyes turn to the Fed minutes at 2 p.m. ET, with Friday’s Personal Consumption Expenditures (PCE) Price Index — the central bank’s go-to inflation measure — set for Feb. 20. Traders are watching for any shift in rate-cut bets. (BEA: Bea)
