On February 17, 2026, Wall Street experienced a volatile session driven by anxiety over artificial intelligence (AI) spending. Despite this unrest, the S&P 500 managed a modest gain of 0.10%, closing at 6,843.22. The Nasdaq Composite increased by 0.14% to reach 22,578.38, while the Dow Jones Industrial Average inched up 0.07% to 49,533.19.
Market sentiment was largely influenced by fears related to AI spending and competition, which weighed on various growth stocks. Notably, Snowflake saw a decline following news surrounding Google BigQuery’s advancements. However, the session saw a positive turnaround for Amazon, which ended its prolonged downward trend with a 1.19% increase. This shift came after the company reported earnings that revealed plans for significant capital expenditures.
In contrast, traditional value names helped to stabilize the broader market. Apple contributed positively with a 3.12% rise, while GE Aerospace increased by 3.70%. Both companies played a crucial role in bolstering the Dow amidst the prevailing market jitters.
The ongoing narrative of a potential “SaaSpocalypse” continued to cast a shadow over the tech sector, especially among software companies vulnerable to AI disruptions. This trend has increasingly raised concerns regarding the revaluation of mega-cap companies within the AI infrastructure and the so-called Magnificent Seven, negatively impacting indices like the S&P 500 and Nasdaq.
Outside the technology sector, consumer staples and packaged-food shares faced challenges as investors grew wary of a cooling U.S. consumer, which could put pressure on profit margins and earnings across these defensive industries.
Despite the prevailing uncertainties, analysts at JPMorgan suggested that certain high-quality stocks currently appear undervalued post-AI market adjustments. They emphasized that investors are beginning to focus on companies with strong competitive advantages and steady regulatory environments as they prepare for forthcoming inflation and GDP data.
This layered market environment reflects the delicate balance investors must navigate, weighing the potential of AI advancements against traditional business fundamentals and consumer behavior trends.
