Stock Market Dips as AI Concerns Weigh on Investors

Feb 18, 2026, 2:19 AM

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US stock futures are trending downward as investors grapple with ongoing concerns related to artificial intelligence (AI) and its potential disruptions across multiple sectors. The Dow Jones Industrial Average, S&P 500, and Nasdaq are all feeling the pressure in a week that has been shortened due to Presidents Day.

The tech-heavy Nasdaq Composite briefly recovered from early losses, gaining 0.1% before settling, while the S&P 500 managed to inch above the flatline, indicating minimal gains. However, the Dow Jones remained relatively unchanged, highlighting a lack of enthusiasm in the blue-chip index amid broader market uncertainties.

Investor sentiment has been particularly affected by fears that AI could significantly disrupt industries such as wealth management, transportation, and logistics. The Dow and S&P 500 have faced declines in four out of the past five weeks, reflecting a broader trend of market volatility linked to these AI-related concerns.

Apple Inc (AAPL) saw its shares rise more than 3% on Tuesday, buoyed by optimism surrounding its development of AI-enhanced wearable devices. Meanwhile, earnings season is entering its final stretch, with Walmart's (WMT) quarterly report set to be a focal point this Thursday, marking the first report since the retail giant joined the trillion-dollar market cap club.

The broader market has also been impacted by a rotation of investments from struggling software stocks to more stable financial sectors. Citigroup and JPMorgan saw increases of 2.6% and over 1%, respectively, as investors seek safer havens amidst the turmoil. However, several software companies, including ServiceNow, Autodesk, and Salesforce, have faced significant declines, with fears that AI could replace traditional software solutions driving investor caution.

"AI innovation and its disruption are calling into question terminal multiples in various corners of the market," noted Scott Chronert, a Citi US equity strategist. He emphasized that investors are now focused on specific risks rather than broader market trends. This shift in focus comes as the technology sector grapples with a challenging environment, with the Nasdaq recording its longest losing streak since 2022.

As the trading week progresses, investors will also be monitoring key economic indicators, including the upcoming personal consumption expenditures price index report scheduled for Friday, along with Federal Reserve meeting minutes set for release on Wednesday.

In summary, the combination of AI fears, sector volatility, and key earnings reports is creating an uncertain environment for US stocks this week. Investors are advised to stay alert as the market navigates through this turbulent period.

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