Nasdaq Hits Record Highs as Tech Momentum Offsets Dow Pullback; Markets Await Nvidia Earnings

Market Performance - The U.S. stock market exhibited a mixed performance on February 16th, 2026, with technology stocks achieving record gains while blue-chip stocks experienced a slight decline [1] - The Nasdaq Composite rose 0.7% to a new all-time high of 16,794.87, driven by optimism surrounding AI integration [2] - The S&P 500 increased by 0.1% to close at 5,308.13, nearing its record high [2] - The Dow Jones Industrial Average fell 0.5%, or nearly 200 points, to end at 39,806.77, following profit-taking in industrial and financial sectors [3] - Small-cap stocks saw a modest increase, with the Russell 2000 rising 0.3% to finish at 2,102.50 [3] Corporate Earnings and Developments - Palo Alto Networks reported quarterly results that met revenue expectations, but investors are focused on its updated guidance for the fiscal year [4] - Zoom Video exceeded analyst estimates for both revenue and earnings, benefiting from its focus on enterprise AI tools [5] - Li Auto experienced stock volatility after reporting a decline in vehicle margins amid a competitive EV market [5] - Norwegian Cruise Line was a top gainer in the S&P 500, raising its full-year profit forecast due to strong demand and higher ticket prices [6] Economic Outlook and Federal Reserve Sentiment - Federal Reserve officials emphasized a "patient" approach to monetary policy, with Vice Chair Philip Jefferson noting that recent inflation data is encouraging but not yet definitive [7] - Treasury yields remained steady as the market adjusted expectations for the Fed's future rate decisions, with a higher probability of rates staying elevated for an extended period [8] Upcoming Market Events - Nvidia's earnings report, scheduled for Wednesday, is anticipated to influence the tech sector significantly, including companies like Microsoft, Apple, and Alphabet [9] - The release of the Federal Reserve's latest meeting minutes on Wednesday is expected to provide insights into inflation target discussions [10] - Notable earnings reports from retail giants Target and Lowe's are also expected this week, which will be crucial for assessing U.S. consumer spending trends [10]