Market Update: U.S. Equities Experience Notable Gains
On February 18, 2026, traders were actively engaged at the New York Stock Exchange, reflecting a day of optimism in U.S. equities.
Stocks surged, fueled predominantly by advancements in Advanced Micro Devices and the software sector, as investor trepidations regarding the potential disruption from artificial intelligence gradually dissipated.
The S&P 500 index ascended by 0.77%, culminating at 6,890.07. Simultaneously, the Nasdaq Composite climbed 1.04%, concluding the day at 22,863.68. The Dow Jones Industrial Average registered an increase of 370.44 points, or 0.76%, finishing at 49,174.50.
Notably, this upward trajectory was buoyed by a nearly 2% rise in Home Depot shares, following a robust earnings report that exceeded forecasts for the first time in a year.
Additionally, the Dow’s gains were augmented by a rebound in IBM shares, which had faltered in the prior session due to similar AI-related anxieties.
Remarkably, shares of AMD surged 8.8% after Meta Platforms revealed a multi-year partnership with the semiconductor titan. The accord entails deploying up to 6 gigawatts of AMD’s graphics processing units for artificial intelligence data centers.
Furthermore, Meta’s investment in AMD will utilize a performance-based warrant for up to 160 million shares of the manufacturer.
This announcement followed Meta’s previous week’s decision to integrate millions of Nvidia’s chips into its data center infrastructure, with Nvidia shares enticingly rising 0.7% as a consequence.
Meanwhile, DocuSign also marked a triumph, witnessing an increase of over 2% after Anthropic proclaimed that its Claude Cowork can now interface with DocuSign, as well as other organizational tools like Google Drive and Gmail.
This development inspired optimism among investors, suggesting a future where artificial intelligence could augment, rather than supplant, software enterprises.
This buoyancy extended into other segments of the software industry. Stocks of Salesforce — which has engaged with Anthropic — advanced by 4%, while ServiceNow appreciated by over 1%.
The iShares Expanded Tech-Software Sector ETF (IGV) enjoyed a rise of nearly 2%, although it remains more than 30% below its peak from the previous year.
“The market has exhibited a sell-first, inquire-later mentality for an extended period,” commented Anshul Sharma, chief investment officer at Savvy Wealth, to CNBC. He characterized the day’s performance as “a classic relief rally after extensive selling.”
Sharma expressed skepticism regarding the prevailing narrative on Wall Street that forecasts an imminent replacement of substantial enterprise software by AI.
“Transitioning from established enterprise software—which aligns with corporate risk parameters—toward developing in-house solutions represents considerable liability risk,” he articulated. “The swift decline in software stocks was a direct reaction to these fears.”
In stark contrast, major averages had receded on Monday, fueled by renewed concerns over AI disruptions.
Additionally, President Donald Trump’s warning about increasing global tariffs to 15%, alongside escalating tensions between the U.S. and Iran, contributed to a climate of uncertainty. A global 10% U.S. tariff was instituted on Tuesday, further influencing market dynamics.
Source link: Cnbc.com.
