The Economic Times·2026-02-18 02:05Market Overview - The S&P 500 information technology sector initially dropped by 1.5% but closed up 0.5%, driven by gains in Nvidia and Apple, despite declines in Microsoft and Oracle [1][12] - The S&P 500 financials index performed well, supported by gains in banks like Goldman Sachs and JPMorgan Chase, helping the Dow recover from an earlier decline [8][12] - The S&P 500 software index ended down 1.6%, with Intuit and Cadence Design being the worst performers, each declining by over 5% [6][12] Investor Sentiment - Investors are experiencing volatility, with frequent spikes in stock prices, indicating a short-term focus in the market [2][12] - Concerns about artificial intelligence disrupting business models have led to a selloff in software firms and other sectors [1][12] AI Developments - Alibaba introduced a new AI model, Qwen 3.5, which can independently execute complex tasks, adding to the uncertainty in the market regarding competition from Chinese AI players [3][12] - There is an expectation that AI-related investments will regain favor in the market [3][12] Economic Indicators - The upcoming personal consumption expenditure report will be crucial for understanding inflation trends and their potential impact on interest rates [9][12] - Traders are pricing in a 63% chance of a 25 basis points rate cut at the Fed's June meeting, marking the first time odds exceed 50% [10][12] Stock Performance Highlights - Norwegian Cruise Line shares surged by 12.1% after activist investor Elliott disclosed a stake of over 10% in the company [12] - Fiserv's shares increased by 6.9% following reports of a stake acquisition by activist investor Jana Partners [12] - Masimo's stock jumped 34.2% after Danaher announced its acquisition for $9.9 billion, while Danaher shares fell by 2.9% [12] Market Statistics - Advancing issues outnumbered decliners by a 1.02-to-1 ratio on the NYSE, while the Nasdaq saw a 1.07-to-1 ratio favoring decliners [11][12] - The S&P 500 recorded 42 new 52-week highs and 10 new lows, while the Nasdaq Composite had 81 new highs and 224 new lows [11][12] - Trading volume on U.S. exchanges was 17.76 billion shares, below the 20.7 billion average over the last 20 trading days [11][12]