Nasdaq Snaps Losing Streak as AI Jitters Keep Pressure on Software Stocks
The $NASDAQ(.IXIC)$ finally ended its four-session losing streak Tuesday, edging up 0.1%, even as artificial intelligence concerns continued to weigh on software stocks.
The $S&P 500(.SPX)$ and Dow Jones Industrial Average also gained 0.1%, with all three major averages reversing earlier intraday losses.
While the headline moves were modest, underlying market activity suggests something far more dynamic is happening beneath the surface.
Market Snapshot (Feb. 17, 2026)
Dow Jones Industrial Average: 49,533.19 (+0.07%)
S&P 500: 6,843.22 (+0.10%)
Nasdaq Composite: 22,578.38 (+0.14%)
Hot Stock: $Norwegian Cruise Line(NCLH)$ (+12.2%)
Biggest Loser: $Genuine Parts(GPC)$ (-14.6%)
Best Sector : Real Estate (+1.0%)
Worst Sector : Consumer Staples (-1.5%)
AI Narrative Shift Drives Sector Rotation
The Roundhill Magnificent Seven ETF rose 0.2%, helping stabilize the Nasdaq. However, software stocks remain under pressure amid fears that advances in AI could disrupt or displace existing business models.
MAG7
Highlights several forces driving performance gaps:
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Shifting AI expectations
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Rotation out of mega-cap tech
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Improving economic conditions
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Increased inflows into active strategies
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Strength in value-tilted and economically sensitive sectors
In short: dispersion is rising.
Big Swings Create Opportunity, and Risk :
Volatility at the individual stock level has been significant.
About 34% of S&P 500 components have moved at least 20% in the past three months, according to Dow Jones Market Data. While not unprecedented, that figure is well above the 20-year average of roughly 15% for a three-month period.
What’s driving the moves?
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AI transformation across technology $NVIDIA(NVDA)$ $Palantir Technologies Inc.(PLTR)$ $Oracle(ORCL)$
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Surging precious metal prices boosting mining shares
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A resurgence in consumer staples after years of lagging
The takeaway: This isn’t a calm, index-driven market. It’s a rotational, theme-driven environment rewarding selectivity.
Housing Market Faces “New Crisis” Concerns
Meanwhile, fresh housing data added another layer of economic debate.
Existing home sales slowed to a 3.91 million annualized pace in January, weaker than expected.
High home prices and elevated mortgage rates have:
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Reduced buyer affordability
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Discouraged homeowners from selling
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Prolonged the market slowdown that began in 2023
However, housing remains highly localized. Markets with stronger job growth and domestic migration are seeing better activity trends.
What’s Next for Markets?
Investors are watching:
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Durable goods data
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New residential construction figures
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Minutes from the latest Federal Open Market Committee meeting
At its January meeting, the Fed left the federal-funds rate unchanged at 3.5%–3.75%, though two governors dissented in favor of a quarter-point cut.
The combination of AI-driven sector shifts, housing affordability pressures, and diverging economic signals continues to create a fragmented but opportunity-rich market landscape…
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This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.
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