New York, Feb 17, 2026, 12:49 EST — Regular session.
- S&P 500 barely moves in midday trade; Nasdaq slips as tech stays shaky
- Empire State factory gauge shows modest growth; homebuilder sentiment dips again
- Traders look to Fed minutes on Feb. 18 and Friday’s GDP and PCE inflation data
The main U.S. stock indexes were subdued in volatile trading on Tuesday after a long weekend, as tech shares teetered following an AI-led selloff and financials held up. At 11:45 a.m. ET, the Dow Jones Industrial Average rose 33.25 points, or 0.07%, to 49,534.18, the S&P 500 gained 0.63 point, or 0.01%, to 6,836.80, and the Nasdaq Composite lost 21.58 points, or 0.10%, to 22,525.09. The S&P 500 software index fell 1.4% and “it’s an indiscriminate selling in all things tech,” said Art Hogan at B Riley Wealth, as traders priced a quarter-point (0.25 percentage point) June rate cut with odds at 52%, CME’s FedWatch showed. (Reuters)
The tone coming into Tuesday was still shaped by last week’s slide. In the prior session on Friday, the Dow ended up 165.95 points at 49,500.93 and the S&P 500 inched higher to 6,836.17, while the Nasdaq slipped to 22,546.67; all three still notched their steepest weekly drop since mid-November. (Reuters)
This week’s U.S. economic calendar is back-loaded after the holiday break, and the Fed’s own docket is filling up again. Minutes from the Jan. 27-28 meeting are due on Wednesday, with the next policy meeting set for March 17-18, the central bank’s website shows. (Federal Reserve)
A first read on Tuesday’s data showed factory activity in New York state still expanding, but not by much. The New York Fed said its Empire State manufacturing index held at 7.1, while its prices paid gauge climbed to 49.1; “manufacturing activity continued to expand modestly,” economic research advisor Richard Deitz said. (Federal Reserve Bank of New York)
Housing looked softer. The NAHB/Wells Fargo housing market index slipped one point to 36 in February, well below 50 — the line that separates more builders viewing conditions as good from bad — and economists had expected 38. “Builders reduced their expectations for future sales,” said NAHB Chairman Buddy Hughes, while chief economist Robert Dietz called for policies “that will bend the construction cost curve” as builders keep leaning on incentives and price cuts. (Reuters)
Fed officials did little to shut down rate-cut talk, but the message stayed conditional. Chicago Fed President Austan Goolsbee said the Fed could deliver “several more” cuts this year if inflation resumes a clear glide path to 2%, while warning that services inflation was “not tamed.” He noted January consumer inflation cooled to 2.4% and said the Fed’s policy rate has been held in the 3.5%-3.75% range; the Fed targets inflation using the Personal Consumption Expenditures price index, with December PCE data due Friday. (Reuters)
Deal headlines moved single names more than the broader tape. Danaher said it would buy Masimo for $9.9 billion including debt, paying $180 per share — a 38.3% premium to Masimo’s last close — and Masimo jumped 34% to $174.48 while Danaher fell 3.5%. J.P.Morgan analysts said the medtech target was “surprising,” while Bernstein analyst Christian Moore said the deal could prove a good one over time. (Reuters)
Activism was back in focus too. Norwegian Cruise Line rallied about 10% after Elliott Management disclosed a stake of more than 10% and pushed for board changes, arguing its actions could help lift the stock to $56 per share. Norwegian said it was “committed to delivering durable, long-term value creation” under new CEO John Chidsey, while Truist Securities analyst Patrick Scholes warned it “cannot be corrected overnight” because many issues reflect years of planning. (Reuters)
In consumer staples, General Mills fell about 3% after cutting its annual core sales and profit forecasts. “Cost of living and housing pressures are reshaping spending patterns,” CEO Jeffrey Harmening said at the CAGNY conference, and GimmeCredit analyst Dave Novosel said the revised guidance looked more consistent with recent trends and what rivals have been seeing. (Reuters)
One earnings day casualty was in parts distribution. Genuine Parts slid more than 12% after saying it would split into two independent companies and forecasting annual profit below Wall Street estimates; the separation is expected to be completed in the first quarter of 2027. (Reuters)
Media stocks were also active. Warner Bros Discovery rejected Paramount Skydance’s latest $30-a-share hostile bid but gave it seven days to deliver a “best and final” offer, and Paramount informally floated $31 a share, Warner Bros said. “We continue to recommend and remain fully committed” to the Netflix transaction, Warner Bros Chairman Samuel DiPiazza Jr. and CEO David Zaslav wrote, as Paramount shares rose 6% and Warner Bros gained 2.3%. (Reuters)
But the calm in the indexes can break fast. A more hawkish set of Fed minutes, or a hotter-than-expected PCE inflation reading, would test the market’s mid-year cut bet and could keep pressure on software and other tech laggards.
Friday is the next big stop on the U.S. economic calendar: BEA plans to publish the advance estimate of fourth-quarter GDP and the December personal income and outlays report at 8:30 a.m., after a shutdown-related schedule change. BEA has said the second estimate of Q4 GDP will be rescheduled, and Friday’s release includes the PCE price index — the Fed’s preferred inflation gauge. (Bea)
