Feb 20 (Reuters) - U.S. equity funds saw a substantial inflow of capital in the week to ‌February 18 on easing worries over a selloff ‌in the technology sector after a cooler consumer price inflation report ​boosted expectations of Federal Reserve rate cuts. According to LSEG Lipper data, investors racked up a net $11.77 billion worth of U.S. equity funds, registering their largest net purchase for ‌a week since ⁠January 14. "We maintain an attractive view on the overall U.S. equity market, but investo ...

Market Overview - Indian equity markets opened on a weak note, with benchmark indices trading lower due to heavy selling pressure in IT stocks. The Sensex opened at 83,968.43, down 293.40 points or 0.35%, while the Nifty 50 opened at 25,906.70, down 86.80 points or 0.33% [1] IT Sector Performance - Technology stocks led the decline, with significant drops: Infosys down 4.72% to ₹1,402.40, Tech Mahindra down 4.24% to ₹1,565.10, Wipro down 4.23% to ₹220.10, TCS down 3.96% to ₹2,794.60, and HCL Technologies down 3.62% to ₹1,495.50. This decline was attributed to concerns over AI-driven disruption in the technology sector [2] Financial Sector Support - Financial stocks provided some support, with Shriram Finance rising 1.33% to ₹1,070.90, ICICI Bank gaining 1.27% to ₹1,424.00, State Bank of India up 1.19% to ₹1,197.00, Bharat Electronics Limited climbing 1.09% to ₹442.30, and Eicher Motors gaining 0.98% to ₹7,847.00 [3] Market Sentiment and Institutional Activity - Despite the weakness in IT stocks, the underlying liquidity remains supportive, with foreign institutional investors continuing as net buyers. They purchased equities worth ₹943 crore on February 11, marking their fourth consecutive session of net buying. In contrast, domestic institutional investors sold equities worth more than ₹125 crore [4][5] Technical Analysis - Analysts expressed caution regarding near-term market direction, identifying crucial support zones at 25,900/84,200 and immediate resistance areas at 26,000/84,500. The Nifty continues to hold its uptrend above key moving averages, with immediate resistance seen near 26,000, potentially extending towards a fresh all-time high of 26,373 [6]

Core Insights - Lineage Inc. is expanding its U.S. operations with the construction of an automated cold-storage facility in Hutchins, Texas, expected to open in late 2027, amid a challenging financial environment due to tariff pressures [1][2][5] Group 1: Expansion Plans - The new facility in Hutchins is the first of two next-generation automated warehouses designed for a long-time customer, enhancing Lineage's capabilities in a key market [2] - The location near Union Pacific's Dallas Intermodal Terminal allows Lineage to serve both domestic and cross-border markets effectively [3] - This expansion follows a recent increase in capacity at Lineage's Hobart, Indiana facility, which is now the largest in North America, adding 188,000 square feet and 58,000 pallet positions [4] Group 2: Financial Performance - Lineage reported a third-quarter net loss of $112 million, despite a 3% year-over-year increase in consolidated revenue to $1.38 billion [6] - Physical occupancy rates were at 75.2%, slightly below the previous year but showing sequential improvement [6] - The company has adjusted its full-year 2025 guidance downward due to ongoing tariff uncertainties and high food prices affecting inventory levels [5] Group 3: Market Dynamics - Despite challenges from tariffs and inflation, consumer demand for products within Lineage's network continues to grow [7]

Core Viewpoint - Goldman Sachs reports that consumers are bearing 55% of the cost of tariffs imposed by the Trump administration this year, indicating a potential inflationary impact [1] Group 1: Tariffs and Consumer Impact - Goldman Sachs estimates that consumers are shouldering 55% of the tariff costs, which suggests inflationary pressures [1] - Other banks have predicted that consumers would pay the full cost of tariffs, but these predictions have not materialized as expected, with many middlemen and foreign exporters absorbing some of the costs [2] - While there are some temporary price increases due to tariffs, the anticipated severe inflation has not occurred [3][4] Group 2: Inflation and Monetary Policy - The increases in the Consumer Price Index (CPI) are largely attributed to poor monetary policy decisions made at the end of the previous year, rather than solely to tariffs [4][5] - The long-term effects of monetary policy are contributing to current price increases, indicating that tariffs are not the primary driver of inflation [5] Group 3: Trade Relations and Economic Conditions - The ongoing trade war with China is expected to continue, as China has a history of not adhering to trade agreements [6][7] - The trade war impacts both the U.S. and Chinese markets, with China's economy currently facing significant challenges, including recessionary indicators [9][10] - New tariffs on lumber could add costs to the housing industry, but regulatory reforms may help mitigate some of these impacts by facilitating domestic lumber processing [11][12]

Market Performance - Major stock indices showed a rebound, with the Dow rising by 238.37 points (0.5%) to 46,190.61, the Nasdaq increasing by 117.44 points (0.5%) to 22,679.97, and the S&P 500 climbing by 34.94 points (0.5%) to 6,664.01 [2] - For the week, the Nasdaq surged by 2.1%, while the S&P 500 and Dow increased by 1.7% and 1.6%, respectively [2] Banking Sector - Banking stocks, including Jefferies (JEF) and Zions Bancorp (ZION), rebounded strongly after previous declines, aided by positive analyst comments [3][4] - Other banks such as Truist Financial (TFC), Fifth Third (FITB), and Huntington Bancshares (HBAN) also saw gains following better-than-expected quarterly earnings [4] Trade Relations - Easing concerns regarding the U.S.-China trade dispute contributed to the positive market sentiment, following comments from President Donald Trump indicating that high tariffs on Chinese imports may not be sustainable [4][5] Sector Movements - Despite overall market strength, most major sectors experienced only modest movements, with gold stocks notably declining [6] - The NYSE Arca Gold Bugs Index fell by 7.4% after reaching a record closing high, attributed to a sharp pullback in gold prices [7] International Markets - Stock markets in the Asia-Pacific region mostly declined, with Japan's Nikkei 225 Index down by 1.4% and China's Shanghai Composite Index down by 2.0% [8] - European markets also faced downward pressure, with the German DAX Index falling by 1.8%, the U.K.'s FTSE 100 Index sliding by 0.9%, and the French CAC 40 Index dipping by 0.2% [8] Bond Market - In the bond market, treasuries experienced profit-taking, leading to a rise in the yield on the benchmark ten-year note by 3.1 basis points to 4.007% [9] Upcoming Earnings - A report on consumer price inflation is anticipated next week, alongside quarterly earnings from major companies such as Coca-Cola (KO), General Motors (GM), Netflix (NFLX), AT&T (T), IBM Corp. (IBM), Tesla (TSLA), and Intel (INTC) [10][11]