Wall Street’s mood brightened this week, as U.S. stock markets extended their winning streaks on the back of robust economic data, renewed optimism in the technology sector, and a wave of corporate and policy news that kept investors on their toes. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posted gains for a third consecutive session on February 18, 2026, shaking off concerns about interest rates and inflation that have dominated market sentiment for months.
According to Barron's, the Dow rose by 130 points, or 0.3%, while the S&P 500 climbed 0.6%, and the tech-heavy Nasdaq Composite advanced 0.8%. These gains were mirrored in other indices, with the S&P 500 closing at 6,881.31 (up 0.56%) and the Nasdaq ending at 22,753.63 (up 0.78%), as reported by Investopedia. The rally came as a slew of economic indicators—including building permits, housing starts, and industrial production—surpassed economists’ expectations, suggesting that consumer and business activity remains resilient despite persistent inflationary pressures.
“So it seems like all this spending is making its way into the ACTUAL economy,” Mizuho’s Daniel O’Regan told Barron's, capturing the sense of cautious optimism that’s been slowly seeping back into investor sentiment.
Yet, the Federal Reserve’s January meeting minutes, released midweek, cast a shadow of uncertainty over the future path of interest rates. The minutes revealed a stark division among policymakers: some are prepared to hike rates further if inflation stays stubbornly above target, while others are eager to continue cutting. Charlie Ripley, senior investment strategist at Allianz Investment Management, told Barron's, “Minutes released from the prior FOMC meeting highlighted the division of views amongst Fed members as inflation continues to be top of mind.” He added, “From our perspective, the minutes support our view that rate cuts are off the table for the foreseeable future.”
Traders, however, are betting that the Fed will hold off on rate cuts until at least June, with the CME FedWatch Tool putting the odds of a quarter-point cut at that meeting at 61.9%. The yield on the 2-year Treasury note rose to 3.46%, and the 10-year yield climbed to 4.08%, reflecting the market’s recalibration of rate expectations.
Meanwhile, the technology sector helped power much of the week’s gains. Shares of Nvidia jumped 1.6% after Meta Platforms announced plans to use millions of Nvidia’s chips in its data center buildout, as noted by Investopedia. Amazon also saw its stock rise nearly 2% following regulatory filings that revealed Bill Ackman’s Pershing Square had increased its stake in the e-commerce giant by 65% during the fourth quarter, making Amazon the fund’s third-largest holding. Micron Technology surged more than 5% after David Tepper’s Appaloosa Management boosted its position in the chipmaker.
But the tech rally wasn’t confined to the sector’s biggest names. Stephen Lee of Logan Capital Management told Investopedia that “lesser-known” tech firms, including industrial tech company Trimble, were also performing well. “I'm not sure today is actually eliminating the broadening out thesis when we kind of peel the onion and look at relative winners,” Lee said, suggesting that market leadership is expanding beyond the usual suspects.
Despite this optimism, not all tech stocks were winners. The software sector, already under pressure due to fears of artificial intelligence disruption, suffered losses during the trading day. This divergence within tech underscores the growing “concentration at the extremes,” as Bespoke Investment Group analysts put it. Their recent note, cited by Investopedia, observed that 117 stocks in the S&P 500 have gained or lost more than 20% since the start of the year, a level of volatility not seen since 1992.
Elsewhere, the market digested a flurry of corporate news. Shares of Palo Alto Networks slid 7% after its earnings guidance disappointed, weighed down by costs from recent acquisitions, including a $25 billion deal for CyberArk. Despite the miss, Morgan Stanley analysts called the post-earnings drop “overdone,” citing the company’s “compelling argument for AI as a tailwind.” Wedbush analysts, meanwhile, remain bullish on cybersecurity stocks such as CrowdStrike and ZScaler, forecasting big gains as AI adoption fuels new security risks.
On the commodities front, oil prices soared, with West Texas Intermediate crude futures jumping about 4.5% to $65.10 a barrel following fresh tensions in U.S.-Iran nuclear talks. Vice President JD Vance said Iran had failed to address U.S. red lines, raising the specter of possible military action. Gold and silver also rebounded, climbing 1.8% and 4.9% respectively, while Bitcoin traded around $66,300, down from overnight highs above $68,000. The U.S. dollar index ticked up 0.6% to 97.70.
In sports business news, Madison Square Garden Sports announced plans to explore a spinoff that would create publicly traded companies for the New York Knicks and New York Rangers. “We believe this proposed transaction would provide each company with enhanced strategic flexibility, its own defined business focus, and clear characteristics for investors,” MSGS CEO Jim Dolan said in a statement. The Knicks, valued at $9.5 billion by Forbes in 2025, are among the world’s top 10 most valuable sports franchises. Citi analysts estimate the stock could see a 15% boost if the spinoff goes through, though league approval is still pending.
Carvana, the online used car dealer, is set to report earnings with traders bracing for a swing of up to 13.5% in either direction, based on recent options pricing. The company is projected to post a 48% year-over-year revenue jump to $5.25 billion, with earnings per share rising to $1.01 from 56 cents a year ago. Despite a rocky start to 2026, analysts remain bullish, with 12 out of 13 tracked by Visible Alpha rating the company a “buy.”
Meanwhile, Nvidia made headlines for selling its stakes in several AI-focused firms in the fourth quarter of 2025, causing those stocks to fall. However, Nvidia’s own shares climbed about 2% in early 2026, buoyed by its ongoing partnerships and investments in chip design and AI cloud infrastructure providers.
In the healthcare sector, Moderna’s stock jumped 6% after the FDA agreed to review its application for a new mRNA flu vaccine, reversing an earlier refusal. The review is expected to be completed by August 5, 2026. CEO Stéphane Bancel expressed gratitude for the FDA’s “constructive” engagement, and Moderna shares have now risen nearly 60% since the start of the year, thanks in part to encouraging cancer trial data.
Finally, Berkshire Hathaway’s latest regulatory filing revealed that the conglomerate, now led by Greg Abel after Warren Buffett’s retirement, has been trimming its holdings in tech giants Apple and Amazon. Berkshire sold about 10.3 million shares of Apple and more than 75% of its Amazon stake in the final quarter of 2025. Despite these sales, both stocks posted gains, with Apple up nearly 7% and Amazon up 5% in the fourth quarter.
The week’s action-packed news cycle highlights a market at a crossroads—buoyed by economic strength and tech innovation, yet still grappling with policy uncertainty and sector-specific headwinds. As investors look ahead to the release of the December Personal Consumption Expenditures price index, all eyes remain on the Fed’s next move and the resilience of American growth in the face of global and domestic challenges.