New York, Feb 17, 2026, 12:49 EST — Regular session in progress.
- Midday, the S&P 500 holds near flat, while the Nasdaq edges lower with tech stocks still on unstable ground.
- The Empire State factory gauge posted modest growth, while homebuilder sentiment slipped once more.
- Eyes are on the Fed minutes coming Feb. 18, with traders also awaiting Friday’s GDP and PCE inflation numbers.
U.S. stock indexes wobbled in choppy action Tuesday, coming off a long break. Tech names slipped, rattled by an AI-driven selloff, while financial stocks managed to stay afloat. By 11:45 a.m. ET, the Dow Jones Industrial Average was up 33.25 points, or 0.07%, at 49,534.18. The S&P 500 inched higher, adding just 0.63 point, or 0.01%, to 6,836.80. The Nasdaq Composite, meanwhile, shed 21.58 points, or 0.10%, to 22,525.09. Software stocks were hit especially hard: the S&P 500 software index dropped 1.4%. “It’s an indiscriminate selling in all things tech,” observed Art Hogan of B Riley Wealth. Traders were now assigning a 52% chance to a quarter-point rate cut in June, according to CME’s FedWatch tool. 1
The mood Tuesday morning was still under the shadow of last week’s sharp loss. Friday saw the Dow add 165.95 points to 49,500.93 and the S&P 500 tick up to 6,836.17. The Nasdaq, though, edged down to 22,546.67. Still, all three major indexes just posted their worst weekly decline since mid-November. 2
The U.S. economic calendar is packed toward the end of this week after the holiday pause, and activity is ramping up at the Fed. On Wednesday, investors get a look at minutes from the Jan. 27-28 meeting. According to the central bank’s website, the next policy gathering falls on March 17-18. 3
Factory activity in New York crept higher in Tuesday’s initial read, but gains were slim. The New York Fed’s Empire State manufacturing index stayed put at 7.1. Prices paid, meanwhile, pushed up to 49.1. “Manufacturing activity continued to expand modestly,” said Richard Deitz, economic research advisor. 4
Housing showed further signs of weakness. February’s NAHB/Wells Fargo housing market index dropped to 36, down one point and still well under the 50 threshold, where optimism among builders gives way to gloom. Economists had penciled in 38. “Builders reduced their expectations for future sales,” NAHB Chairman Buddy Hughes said. NAHB chief economist Robert Dietz, meanwhile, called for measures “that will bend the construction cost curve” as builders continue to rely on incentives and price cuts. 5
Fed officials kept the door open to rate cuts, though with caveats. Chicago Fed President Austan Goolsbee said “several more” cuts this year remain on the table—but only if inflation keeps heading toward 2%. Services inflation remains “not tamed,” Goolsbee added. He pointed out that January consumer inflation dropped to 2.4%. The policy rate is still sitting in the 3.5%-3.75% band. The Fed uses the Personal Consumption Expenditures price index to track inflation; December’s PCE numbers are set for release Friday. 6
Deal news sent individual stocks swinging, even as the broader market held steady. Danaher announced plans to acquire Masimo for $9.9 billion, debt included, offering $180 a share—a 38.3% premium on Masimo’s previous close. Shares of Masimo surged 34% to $174.48. Danaher, on the other hand, dropped 3.5%. J.P.Morgan analysts called the medtech pick “surprising.” Bernstein’s Christian Moore said the deal might pan out well in the long run. 7
Activist investors are making waves again. Shares of Norwegian Cruise Line surged roughly 10% after Elliott Management revealed a stake exceeding 10% and started pushing for changes on the board, betting the moves could send the stock up to $56. Norwegian, now led by new CEO John Chidsey, said it remains “committed to delivering durable, long-term value creation.” Truist Securities’ Patrick Scholes, however, cautioned that years of planning can’t be undone quickly, saying it “cannot be corrected overnight.” 8
General Mills dropped roughly 3% in consumer staples after slashing its full-year core sales and profit outlook. CEO Jeffrey Harmening told the CAGNY conference, “Cost of living and housing pressures are reshaping spending patterns.” GimmeCredit’s Dave Novosel commented that the updated guidance lines up better with how things have been going lately, and with what competitors have reported. 9
Genuine Parts dropped over 12% this day after the company laid out plans to break itself into two standalone firms and guided annual earnings beneath Wall Street’s forecasts. The split, aimed for completion in the first quarter of 2027, weighed heavily on the stock. 10
Media names stayed in focus. Warner Bros Discovery turned down Paramount Skydance’s latest $30-a-share unsolicited offer, but handed the bidder a one-week window to put forward a “best and final” proposal. Warner Bros said Paramount responded by unofficially suggesting $31 a share. “We continue to recommend and remain fully committed” to the Netflix deal, wrote Warner Bros Chairman Samuel DiPiazza Jr. and CEO David Zaslav. Paramount stock was up 6%, Warner Bros added 2.3%. 11
Still, that quiet in the indexes could snap quickly. If Fed minutes come off more hawkish, or if PCE inflation data tops forecasts, traders betting on a mid-year cut might get rattled—software and some other underperforming tech names could stay under the gun.
The next key event for the U.S. economic calendar lands Friday, when the BEA is set to release its advance estimate of fourth-quarter GDP, alongside December personal income and outlays data, at 8:30 a.m. ET. This comes after a schedule shuffle tied to the shutdown. The agency noted it will move the second Q4 GDP estimate to a later date. Friday’s figures also bring the PCE price index — the inflation metric favored by the Fed. 12
