Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 17, 2026.
Brendan McDermid | Reuters
Stock futures were near the flatline in overnight trading after a tepid session for U.S. equities.
Futures tied to the Dow Jones Industrial Average lost 32 points, or 0.06%. S&P 500 futures fell 0.07%, while Nasdaq 100 futures slipped 0.1%.
In regular trading Tuesday, the major averages posted slim gains, with the S&P 500 and the Nasdaq Composite adding about 0.1%. The 30-stock Dow gained roughly 32 points, or nearly 0.1%.
The software sector, which has already been under pressure due to fears of disruption by artificial intelligence, fell during the session. CrowdStrike and ServiceNow lost 3.6% and 1.1%, respectively.
“No one knows exactly how this is going to play out,” Truist Wealth’s Keith Lerner said of the tech pullback on CNBC’s “Closing Bell” Tuesday. “From our perspective, though, at least you have reset those expectations where if earnings do come through, a little bit of good news can go a long way,”
“As we look at the forward earning estimates among the sectors, tech, by far, is still the strongest, over the last four months, up about 20%. … We still think it deserves the benefit of the doubt,” the firm’s chief market strategist added.
On Wednesday, traders will be watching for the Federal Reserve minutes from the policymakers’ January meeting. The next big catalyst this week, however, will likely be the personal consumption expenditure price index reading that’s due on Friday.
The PCE, the Fed’s preferred inflation gauge, will give further insight into the state of the economy. Markets are “likely in a semi-holding pattern” ahead of the report, especially as the artificial intelligence trade becomes increasingly difficult to navigate, according to Ameriprise chief market strategist Anthony Saglimbene.
On the earnings front, Booking Holdings, Carvana and DoorDash are slated to report Wednesday.
Amazon closes higher Tuesday, snaps 9-day losing streak
Amazon gained 1.2% on Tuesday, ending the stock’s nine-day consecutive stretch of losses.
The stock shed roughly 18% of its value between Feb. 2 and Friday, marking the worst losing streak since 2006 and slashing more than $450 billion in market valuation as investors question the merits of its artificial intelligence spending plans. The selling frenzy around Amazon is tied to the company’s fourth-quarter earnings report released earlier this month.
Amazon said it expects to spend $200 billion in capital expenditures this year, a nearly 60% increase from last year and more than $50 billion above Wall Street’s forecast.
Amazon stock performance over the past year.
Shares of the company are down nearly 12.9% year to date.
— Annie Palmer, Pia Singh
Palo Alto Networks and Caesars Entertainment among stocks moving in after-hours session
Check out the companies making headlines in after-hours trading.
- Palo Alto Networks — Shares of the cybersecurity company tumbled almost 6% after Palo Alto issued a weak earnings forecast for the current quarter. The company sees adjusted earnings for the fiscal third quarter ranging from 78 cents to 80 cents per share, while the LSEG consensus sought 92 cents per share.
- Cadence Design Systems — The computational software company’s shares advanced nearly 4%. Cadence Design sees full-year adjusted earnings ranging from $8.05 to $8.15 per share, while the LSEG consensus called for $8.05 per share. The company also said its year-end backlog for 2025 was a record $7.8 billion, adding that it expects to recognize $3.8 billion in revenue in the next 12 months from remaining performance obligations.
- Caesars Entertainment — The casino operator saw shares rise more than 3%. Revenue in the fourth quarter came in at $2.92 billion, surpassing the LSEG consensus estimate of $2.89 billion. Caesars Digital adjusted EBITDA for the period came in at $85 million, compared with $20 million a year ago.
For the full list, read here.
— Pia Singh
