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U.S. stock markets closed mixed on Friday to end a losing week. Stock prices were muted on Friday as major indexes were mostly sidetracked. Soft inflation data failed to enthuse market participants due to artificial intelligence (AI)-related disruption fears. The Dow and the S&P 500 rose marginally while the Nasdaq Composite ended in negative. For the week as a whole, all three major stock indexes finished in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.1% to close at 49,500.93 after a choppy session. At intraday high, the blue-chip index was up 292 points. At the intraday low, the blue-chip index was down 367.63 points. Notably, 16 components of the 30-stock index ended in positive territory while 14 ended in negative zone.
The tech-heavy Nasdaq Composite finished at 22,546.67, sliding 0.2% due to weak performance by the AI bigwigs. The S&P 500 rose 0.1% to finish at 6,836.17. Eight out of 11 broad sectors of the broad-market index ended in negative territory while three ended in positive zone.
The Technology Select Sector SPDR (XLK), the Financials Select Sector SPDR (XLF), the Energy Select Sector SPDR (XLE) and the Communication Services Select Sector SPDR (XLC) tumbled 2.6%, 2%, 1.8% and 1.8%, respectively. On the other hand, the Utilities Select Sector SPDR (XLU) gained 1.5%.
The fear-gauge CBOE Volatility Index (VIX) was down 1.1% to 20.60. A total of 18.61 billion shares were traded on Friday, lower than the last 20-session average of 20.75 billion. Advancers outnumbered decliners on the NYSE by a 2.57-to-1 ratio. On the Nasdaq, a 1.92-to-1 ratio favored the declining issues.
Economic Data
The Department of Labor reported that the consumer price index (CPI) – popularly known as household inflation – rose 0.2% month over month in January, beating the consensus estimate of 0.3%. The metric for the previous month was also 0.3%. Year over year, the headline CPI was up 2.4% in January. The metric came down to the level of April 2025, after the imposition of tariffs by President Donald Trump on U.S. imports.
The core CPI (excluding the volatile food and energy items) rose 0.3% month over month in January, in line with the consensus estimate. The metric for the previous month was 0.2%. Year over year, the core CPI was up 2.5% in January, marking the lowest level since April 2021.
AI Fears Grip Markets
Tech stocks have been taking a beating lately. Investors have been rotating out of tech stocks on growing concerns over the downsides of AI stocks. On Friday, the selloff continued as fears grew over the potential of AI stocks compared to the billions of dollars pumped into the sector.
Some sections of the stock market have suffered this year following the rollout of AI tools that threaten to copy what they do or eat into their profit margins. Financial stocks, especially, have been feeling the heat on concerns that AI could hamper wealth management businesses.
Shares of Morgan Stanley (MS - Free Report) declined 4.8% last week. Several other sectors, such as media and real estate, also suffered due to AI disruption fears. Shares of CBRE Group Inc. (CBRE - Free Report) have plummeted 16%, while Netflix Inc. (NFLX - Free Report) has tumbled 6%, year to date.
Last week was disappointing for Wall Street. The Dow, the S&P 500 and the Nasdaq Composite fell 1.2%, 1.4% and 2.1%, respectively. This was primarily due to concerns over the AI trade and the sustainability of extremely overstretched valuation of AI stocks.
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Stock Market News for Feb 17, 2026
U.S. stock markets closed mixed on Friday to end a losing week. Stock prices were muted on Friday as major indexes were mostly sidetracked. Soft inflation data failed to enthuse market participants due to artificial intelligence (AI)-related disruption fears. The Dow and the S&P 500 rose marginally while the Nasdaq Composite ended in negative. For the week as a whole, all three major stock indexes finished in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.1% to close at 49,500.93 after a choppy session. At intraday high, the blue-chip index was up 292 points. At the intraday low, the blue-chip index was down 367.63 points. Notably, 16 components of the 30-stock index ended in positive territory while 14 ended in negative zone.
The tech-heavy Nasdaq Composite finished at 22,546.67, sliding 0.2% due to weak performance by the AI bigwigs. The S&P 500 rose 0.1% to finish at 6,836.17. Eight out of 11 broad sectors of the broad-market index ended in negative territory while three ended in positive zone.
The Technology Select Sector SPDR (XLK), the Financials Select Sector SPDR (XLF), the Energy Select Sector SPDR (XLE) and the Communication Services Select Sector SPDR (XLC) tumbled 2.6%, 2%, 1.8% and 1.8%, respectively. On the other hand, the Utilities Select Sector SPDR (XLU) gained 1.5%.
The fear-gauge CBOE Volatility Index (VIX) was down 1.1% to 20.60. A total of 18.61 billion shares were traded on Friday, lower than the last 20-session average of 20.75 billion. Advancers outnumbered decliners on the NYSE by a 2.57-to-1 ratio. On the Nasdaq, a 1.92-to-1 ratio favored the declining issues.
Economic Data
The Department of Labor reported that the consumer price index (CPI) – popularly known as household inflation – rose 0.2% month over month in January, beating the consensus estimate of 0.3%. The metric for the previous month was also 0.3%. Year over year, the headline CPI was up 2.4% in January. The metric came down to the level of April 2025, after the imposition of tariffs by President Donald Trump on U.S. imports.
The core CPI (excluding the volatile food and energy items) rose 0.3% month over month in January, in line with the consensus estimate. The metric for the previous month was 0.2%. Year over year, the core CPI was up 2.5% in January, marking the lowest level since April 2021.
AI Fears Grip Markets
Tech stocks have been taking a beating lately. Investors have been rotating out of tech stocks on growing concerns over the downsides of AI stocks. On Friday, the selloff continued as fears grew over the potential of AI stocks compared to the billions of dollars pumped into the sector.
Some sections of the stock market have suffered this year following the rollout of AI tools that threaten to copy what they do or eat into their profit margins. Financial stocks, especially, have been feeling the heat on concerns that AI could hamper wealth management businesses.
Shares of Morgan Stanley (MS - Free Report) declined 4.8% last week. Several other sectors, such as media and real estate, also suffered due to AI disruption fears. Shares of CBRE Group Inc. (CBRE - Free Report) have plummeted 16%, while Netflix Inc. (NFLX - Free Report) has tumbled 6%, year to date.
Morgan Stanley currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Weekly Roundup
Last week was disappointing for Wall Street. The Dow, the S&P 500 and the Nasdaq Composite fell 1.2%, 1.4% and 2.1%, respectively. This was primarily due to concerns over the AI trade and the sustainability of extremely overstretched valuation of AI stocks.