Why Is the US Stock Market Down Today?
The US inventory market opened decrease on February 17, 2026. It is the first session after Presidents’ Day, with the S&P 500 buying and selling round 6,840 at press time. The Index is down roughly 0.65% (round 44 factors) from Friday’s high, however up virtually 0.58% since right this moment’s open. This hints at consumers stepping in throughout sectors.
Persistent “SaaSpocalypse” fears that AI will disrupt conventional software program and tech fashions proceed to strain the market. This makes Information Technology the weakest sector, down 1.5% intraday. Synopsys, Inc. (SNPS) leads the high laggards, falling 1.6% amid broader AI nervousness.
Top US Stock Market News:
• Empire State Manufacturing Index: The New York Fed’s survey showed modest regional expansion in February at +7.1. It is barely beneath January’s +7.7 however above forecasts. This main gauge for US manufacturing facility exercise gives some reassurance towards slowdown fears.
• Canadian CPI Cools: January headline inflation eased to 2.3% YoY (from 2.4%), pushed by decrease gasoline costs. The softer print strengthens the disinflation narrative and will preview comparable traits in US knowledge, supporting Fed rate-cut hopes.
• US-Iran Indirect Talks Resume: Discussions in Geneva today centered on nuclear points and de-escalation. Progress might assist stabilize oil markets and scale back volatility in the power and international commerce sectors.
S&P 500 Tests Key Level As AI Disruption Fears Weigh on Wall Street
Wall Street remains cautious on February 17, 2026, with the US inventory market buying and selling blended however general subdued amid persistent SaaSpocalypse fears. The S&P 500 opened weaker, briefly dipping beneath its 100-day EMA earlier than reclaiming it.
The index stabilized round 6,834–6,841 mid-session, down 0.65% intraday from its February 13 high.
The pattern suggests the market may recuperate mildly, however the key to a broader restoration lies above the highs set on February 13 (Friday).
This echoes the late-November 2025 state of affairs. The index misplaced the 100-day EMA on November 28 however reclaimed it shortly the subsequent session, triggering a robust rally. The S&P 500 gained roughly 7.38% from late November into late January.
The 100-day EMA has acted as sturdy help since then. Key help now sits round this zone, at round 6,819. A detailed beneath might invite broader weak point towards 6,762 and 6,705. A decisive push above 6,889 (above Friday’s high) might goal the psychological 7,000 degree.
However, stagflation-like considerations (sticky inflation, development slowdown) and AI disruption nervousness restrict upside conviction.
Nasdaq Composite trades deeper in the pink, highlighting tech’s drag. Tech’s 33% S&P 500 weight amplifies the influence on the broader index.
VIX, the Volatility Index, eased 1.08% to twenty.97 (from greater early-session ranges), signaling lowered volatility as the day progressed, although nonetheless elevated relative to current lows and reflecting warning.
The US 10-year Treasury yield is 4.05% (down modestly right this moment, close to 2.5-month lows).
It displays flight-to-safety flows and softer inflation expectations; supportive for bonds however pressuring development shares and crypto amid delayed rate-cut bets.
Sector Rotation in Focus: Defensives Shine While Tech Drags
The US inventory market’s blended tone on February 17, 2026, reveals pronounced sector rotation. Technology (XLK) is the standout laggard, down roughly 1.24% from February 13 highs (presently buying and selling -0.37% on the day).
XLK is the Technology Select Sector SPDR Fund, managed by State Street Global Advisors, considered one of the flagship sector ETFs that slices the S&P 500 into its 11 GICS sectors for focused publicity.
It tracks main tech names (Nvidia, Microsoft, Apple) and software program/semiconductor corporations. This makes XLK delicate to development sentiment and AI-related developments.
The XLK chart exhibits a growing head-and-shoulders sample, a bearish construction. The neckline holds regular close to 133; a decisive break beneath might verify the sample and set off a ten% draw back transfer (measured from head to neckline), probably pushing towards 129 and even 120 in a deeper correction if broader market circumstances or AI considerations worsen.
Utilities (XLU) continues to indicate relative power after rallying 2.5% on Friday. While it’s down 0.40% right this moment in keeping with broader weak point, the sector stays the strongest performer on a weekly foundation.
This circulate, from development/tech into defensives and worth, explains why the S&P 500 can commerce flat-to-lower regardless of inexperienced pockets: tech’s 33% index weight magnifies XLK weak point, overshadowing beneficial properties elsewhere.
The bearish setup invalidates on a reclaim of 141–144; a transfer above 150 would absolutely negate the menace.
Synopsys (SNPS) Drops 4.4% As AI Anxiety Hammers Software Stocks
Synopsys (SNPS) is considered one of the standout US stock market laggards. It is buying and selling at roughly 419 after dropping 4.43% intraday, at press time.
As a number one EDA software program and semiconductor IP supplier, SNPS is intently tied to the software program infrastructure subsector. This leaves it susceptible to ongoing considerations that AI might reshape chip-design workflows.
In the Technology Select Sector SPDR Fund (XLK), SNPS carries a modest weight of 0.72%. This limits its direct ETF influence however serves as a robust proxy for software program weak point (e.g., ORCL -3.85%, CRWD -5.12%, FTNT -4.11%).
The each day chart exhibits SNPS buying and selling inside a bear flag sample following a 24% correction that started January 12, 2026, with the February 4 rebound/consolidation maintaining value contained inside the flag. It tried a breakdown right this moment, however consumers defended to this point.
A confirmed break beneath 416 might activate the sample, projecting draw back towards 322 (over 20% from present ranges). Intermediate help ranges sit at 402 and 371.
The bearish setup invalidates on a reclaim of 451. This reinforces rotation away from software program/development names into defensives, including to Nasdaq’s relative strain.
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