U.S. stocks pushed higher on Wednesday, February 18, 2026, extending their recent rebound as investors set aside mounting concerns about artificial intelligence valuations and focused instead on Federal Reserve policy signals and a fresh batch of corporate earnings.
The benchmark S&P 500 climbed 0.6% to close at 6,881.31, marking its third consecutive daily gain.
The tech-heavy Nasdaq Composite outperformed with a 0.8% advance, while the Dow Jones Industrial Average added 0.3%.
The upward move followed a choppy stretch for equities, particularly in the technology sector, where investors have been reassessing lofty expectations tied to the AI boom.
Technology names regained some footing after several volatile sessions. Semiconductor and software stocks, which had recently come under pressure amid worries that AI-related spending may not translate into immediate profits, found buyers once again.
Chipmakers were among the session’s standouts, helped by upbeat earnings and deal activity.
Analog Devices rose after posting better-than-expected quarterly results and offering strong guidance, citing robust demand from industrial and data center customers benefiting from AI-driven investment.
Meanwhile, Nvidia shares advanced after news of a major AI chip agreement with Meta Platforms, reinforcing optimism that hyperscalers continue to ramp up spending on advanced computing infrastructure.
Investors appeared willing to look past broader valuation concerns, at least for now, as evidence of sustained capital expenditure in AI ecosystems continues to emerge.
Outside technology, energy stocks led sector gains as oil prices surged more than 4%. Traders pointed to escalating geopolitical tensions, including strained negotiations involving Russia and Ukraine as well as renewed friction between the U.S. and Iran.
Brent crude hovered near $69 a barrel, while West Texas Intermediate traded around $64. The rally in crude lifted energy producers and helped underpin the broader market.
Gold prices also jumped, briefly reclaiming the $5,000 level, as investors sought hedges against geopolitical uncertainty.
Treasury yields ticked modestly higher, with the 10-year yield hovering near 4.07%, reflecting a cautious but steady bond market response to the day’s economic developments.
A key catalyst for market direction came in the afternoon with the release of minutes from the Federal Reserve’s January policy meeting. The record showed policymakers divided on the timing of potential rate cuts.
While several officials suggested further reductions in the federal funds rate could be appropriate if inflation continues to cool in line with expectations, others signaled a preference for holding rates steady for some time to assess incoming data.
Importantly for markets, the minutes did little to disrupt prevailing expectations that at least two rate cuts could materialize later this year.
Traders continue to price in a strong likelihood of the first move by midyear, provided inflation trends cooperate. The absence of any overtly hawkish surprises helped equities maintain their upward momentum into the close.
In corporate news, shares of DoorDash and eBay were in focus ahead of earnings releases.
Gambling stocks also rallied sharply after Caesars Entertainment posted solid fourth-quarter results, easing concerns that demand in Las Vegas was faltering. The Roundhill Sports Betting and iGaming ETF logged its strongest session in months.
Elsewhere, Wendy’s shares surged after activist investor Trian Partners disclosed it was exploring strategic alternatives, including a potential transaction that could take the fast-food chain private.
Despite the day’s gains, broader questions linger about market leadership and global performance. U.S. stocks have lagged several international benchmarks so far this year, marking their weakest relative start since the mid-1990s.
For now, however, Wall Street appears content to ride a renewed wave of tech optimism, steady economic data, and cautious confidence that the Federal Reserve remains on track to ease policy later in 2026.
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