S&P 500 – 6,843.22 (+0.10%)

Dow Jones – 49,533.19 (+0.065%)

NASDAQ – 22,578.38 (+0.14%)

• U.S. Markets: U.S. equity markets are trading mostly lower on Tuesday, with limited economic data scheduled. Bond yields were largely unchanged, with the 10-year U.S. Treasury yield at 4.05% and the 2-year slightly higher at 3.42%. The U.S. dollar is rebounding roughly 0.5% against a basket of developed-market currencies, while commodity markets are mixed—oil prices are flat and gold is down about 3%.
• Geopolitical News: Iran temporarily closed parts of the Strait of Hormuz during military drills as U.S.-Iran nuclear talks took place in Geneva, creating minor shipping delays but no major disruptions to global oil flows.
• Student Loan Forgiveness: The Trump administration identified over 40,000 federal student loan borrowers eligible for debt forgiveness in January, expanding access under income-driven repayment plans and Public Service Loan Forgiveness amid ongoing backlogs.
• Artificial Intelligence & Tech Startups: Cloud startup Render raised $100 million at a $1.5 billion valuation, benefiting from soaring demand for AI-powered applications and expanding its developer platform amid competition from major cloud providers.
• Automotive Innovation: Ford is investing $5 billion in next-generation EVs with Tesla-inspired 48-volt electrical architecture, aiming to launch an affordable $30,000 electric pickup in 2027 while streamlining production and enhancing efficiency.
• Retail & Cloud Infrastructure: Amazon CEO Andy Jassy defended the company’s $200 billion 2026 capital expenditure plan on AI infrastructure, expressing confidence in strong long-term returns despite investor concerns over the aggressive spending.
• Global Markets: International markets have carried forward strong performance from 2025, with the MSCI EAFE Index up nearly 8% YTD, led by Japan (+13%), and the MSCI Emerging Markets Index up 11%, fueled by technology-heavy regions such as Korea (+34%).
  • Earnings & Corporate Moves: Fourth-quarter S&P 500 earnings are on pace to grow 12% YoY, above the roughly 7% expected. Notable stock movements include:
    • Warner Bros. Discovery (WBD) rising ahead of a Netflix merger vote.
    • Nvidia (NVDA) dipping amid tech weakness, but with positive H2 2026 outlook.
    • Micron (MU) slipping after $200 billion data center investment news.
    • Southwest Airlines (LUV) gaining on UBS upgrade.
    • Danaher (DHR) planning a $10 billion Masimo (MASI) acquisition.
    • Zim Integrated Shipping (ZIM) surging on Hapag-Lloyd acquisition news.
    • Coinbase (COIN) up 16% after strong 2025 trading volume.
• Consumer & Sector Trends: Consumer stocks outperformed amid falling yields and steady inflation, with gains in Lululemon (LULU), Dollar General (DG), Disney (DIS), Nike (NKE), Wendy’s (WEN), and Target (TGT). Cruise lines were mixed, software stocks rebounded, and homebuilders benefited from lower Treasury yields. Defensive sectors like utilities and real estate led S&P 500 gains, while IT and communication services lagged.
• Volatility: The Cboe VIX finished last week above 21, signaling elevated market caution. VIX has closed above 20 in three sessions so far this month, the most since November when it spiked to 28, and it rose again in early trading Tuesday.

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“Obstacles are those frightful things you see when you take your eyes off your goal.” – Henry Ford

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Notable Stocks

• Amazon (AMZN)
• Nvidia (NVDA)
• Micron (MU)
• Medtronic (MDT)
• Warner Brothers Discovery (WBD)

Weekly Notables

Cloud Startup Render Raises $100M at $1.5B Valuation Amid AI App Boom

Render, a San Francisco-based cloud infrastructure startup, has raised $100 million in funding at a $1.5 billion valuation, as investors double down on the growing market for AI-powered applications. Founded in 2018, Render provides an easy-to-use cloud platform for developers, and its revenue has grown over 100% year-over-year, with more than 4.5 million developers using its tools, CEO Anurag Goel told CNBC. The startup plans to hire additional technical staff and expand its feature set with the new capital.

Iran Temporarily Closes Strait of Hormuz Amid U.S. Nuclear Talks

Iran partially and temporarily closed the Strait of Hormuz on Tuesday, citing “security precautions” as the Revolutionary Guard conducted military drills in the strategic waterway, Iranian state media reported. The closure comes while the U.S. and Iran hold nuclear negotiations in Geneva, aiming to resolve the ongoing dispute over Tehran’s nuclear program. It is the first time parts of the strait have been shut since January, when former President Trump threatened military action against Iran.

Earnings Spotlight: Walmart (WMT)

Walmart reports its fourth-quarter earnings and fiscal 2026 financial results Thursday (Feb. 19) before the market opens, and the consensus estimate is earnings per share of 73 cents for the quarter ending Jan. 31. That would be a gain of 10.6% over a year ago, after one-time adjustments. Revenue is forecast at $189.99 billion, rising 5.2% from the same period last year. Analysts expect net sales for Walmart U.S. to be $129.01 billion, which would be up 4.46% from the $123.5 billion reported a year ago. U.S. same-store sales are expected to rise 4.3%, excluding fuel, below comp sales gains of 4.6% in the year-ago period.

What's Ahead

• Wednesday (2/18): Building Permits, Capacity Utilization, Export Prices ex-ag, Housing Starts, Import Prices, Industrial Production, MBA Mortgage Applications Index, Net Long-Term TIC Flow. Earnings from Analog Devices Inc. (ADI), Booking Holdings Inc. (BKNG), Carvana Co. (CVNA), Clean Harbors (CLH), CRH PLC (CRH), DoorDash Inc. (DASH), eBay Inc. (EBAY), Garmin Ltd. (GRMN), Global Payments Inc. (GPN), Insulet Corp. (PODD), Moody's Corp. (MCO), Occidental Petroleum (OXY), Verisk Analytics Inc. (VRSK).
• Thursday (2/19): Continuing Claims, EIA Crude Oil Inventories, EIA Natural Gas Inventories, Initial Claims, Pending Home Sales, Philadelphia Fed Index. Earnings from Alliant Energy Corp. (LNT), Cenovus Energy Inc. (CVE), CenterPoint Energy Inc. (CNP), Comfort Systems Inc. (FIX), Copart Inc. (CPRT), Deere & Co. (DE), Extra Space Storage Inc. (EXR), Gold Fields Ltd. (GFI), Live Nation Entertainment Inc. (LYV), Newmont Corporation (NEM), Quanta Services Inc. (PWR), Southern Co. (SO), Targa Resources Corp. (TRGP), Walmart Inc. (WMT).
• Friday (2/20): Chain Deflator, Q4 GDP – Advanced, PCE Prices, Personal Income, Personal Spending, University of Michigan Consumer Sentiment – Final. Earnings from Anglogold Ashanti PLC (AU), Balchem Corp. (BCPC), Hudbay Minerals Inc. (HBM), Lamar Advertising Co. (LAMR), PPL Corp. (PPL), Sibanya Stillwater Ltd. (SBSW), Vipshop Holdings Ltd. (VIPS).