NEW YORK, Feb 19, 2026, 14:02 EST — Regular session
- The S&P 500 fell about 0.4% in afternoon trade, dragged down by financials and chip stocks.
- Jobless claims dropped to 206,000 and the Philly Fed’s factory survey stayed in expansion, but employment cooled.
- Traders look to Friday’s PCE inflation report for the next read on Federal Reserve timing.
Wall Street’s main indexes slipped on Thursday as investors worked through a busy U.S. economic calendar and a fresh bout of nerves in private credit. The Dow Jones Industrial Average fell 0.65%, the S&P 500 dropped 0.42% and the Nasdaq Composite lost 0.45% by early afternoon. (Stooq)
The pullback followed Wednesday’s tech-led lift, when Nvidia rose after it said it had signed a multi-year deal to sell millions of its current and future AI chips to Meta Platforms. That rebound left markets quick to react to any hint that the economy is holding up too well for rate cuts, or that credit pockets are starting to creak. (Reuters)
Financials took the brunt after Blue Owl Capital said it would sell $1.4 billion of assets and freeze redemptions at one of its funds, prompting a broader slide in private-equity names including Apollo, Ares, KKR and Carlyle. “All of a sudden (markets) discovered that AI is going to have a big impact… it’s just an over-reaction,” said Max Wasserman, founder and senior portfolio manager at Miramar Capital. Earnings also set the tone: Deere jumped more than 12%, while EPAM Systems slid more than 20% and Omnicom surged in a choppy tape; traders also flagged Friday’s Personal Consumption Expenditures (PCE) report as the next big macro test. (Reuters)
On the data front, weekly initial jobless claims fell by 23,000 to 206,000 for the week ended Feb. 14, undershooting economists’ 225,000 forecast. Continuing claims — a proxy for how quickly laid-off workers find new jobs — rose to 1.869 million, the Labor Department said. (Reuters)
Manufacturing signals were mixed. The Philadelphia Fed’s monthly factory survey showed its current general activity index rose to 16.3 in February, while the employment index dipped into negative territory at -1.3 and the shipments index slid to 0.3. (Federal Reserve Bank of Philadelphia)
Another release on the calendar pointed to a softer near-term tone. The Conference Board said its Leading Economic Index fell 0.2% in December to 97.6, its fifth straight monthly decline; “the US LEI registered its fifth consecutive monthly decline in December, indicating continued softness in the economy in early 2026,” said Justyna Zabinska-La Monica, a senior manager at the group. (The Conference Board)
Trade data, however, told a different story on demand. The U.S. trade deficit widened 32.6% to $70.3 billion in December, far above expectations for $55.5 billion, as imports jumped — including capital goods tied to data-center buildouts. “There just isn’t any evidence… to suggest that tariffs have materially impacted trade deficits historically,” said Chad Bown at the Peterson Institute for International Economics. (Reuters)
Housing offered less comfort. Contracts to buy previously owned homes fell 0.8% in January, pushing the pending home sales index down to 70.9, the National Association of Realtors said. “Unless housing supply increases, these additional potential buyers… could simply push up home prices,” NAR chief economist Lawrence Yun said. (Reuters)
Fed policy stayed in the background but it has been driving the rhythm. Minutes from the central bank’s Jan. 27-28 meeting underscored a split over what comes next, with some officials open to hikes if inflation stays sticky and others still leaning toward cuts if inflation eases as expected, while policymakers also debated how AI could reshape productivity and prices. “Policymakers are going in opposite directions with inflation still above the Fed’s target,” said David Russell, global head of market strategy at TradeStation. (Reuters)
There is a downside case traders keep circling back to. The dollar has firmed as data points to a stable economy that gives the Fed room to wait, and investors are also watching the Middle East as oil prices rise on worries about a potential U.S.-Iran conflict. “Without a reason to move, traders are going to be conservative,” said Joseph Trevisani, senior analyst at FXStreet. (Reuters)
Later Thursday, several Fed officials are due to speak. The next catalyst is Friday, Feb. 20: the PCE price index — the Fed’s preferred inflation gauge — alongside the delayed advance estimate of fourth-quarter GDP.
