U.S. stock markets faced multiple adverse factors overnight, weighed down by concerns over artificial intelligence, developments in private credit, and tensions in the Middle East.
A combination of negative news put pressure on U.S. equities. On Thursday, February 19, U.S. stocks opened lower and closed down, with all three major indices declining collectively.
At the close, the Dow Jones Industrial Average fell 0.54% to 49,395.16 points; the S&P 500 dropped 0.28% to 6,861.89 points; and the Nasdaq Composite decreased 0.31% to 22,682.73 points.
According to recent reports, U.S. sources indicate that the U.S. President is considering a "limited-scale" preliminary military strike against Iran to pressure it into accepting U.S. demands regarding a nuclear agreement. Informed sources stated that if authorized, the operation could take place within days, targeting a small number of military or government facilities. The move is intended to pressure Tehran rather than immediately escalate into a full-scale war. This plan is seen as the first step in a phased approach.
On the macroeconomic front, Federal Reserve Governor Stephen Milan revised down his expectations for the extent of Fed interest rate cuts this year. In an interview, Milan noted that recent data shows employment conditions are better than he had anticipated, while goods inflation has proven more persistent. Consequently, Milan stated he no longer believes the Fed should implement significant rate cuts this year, contrary to his projection two months ago.
Recently, Arthur Mensch, CEO of French AI startup Mistral, stated that over 50% of the software currently used by enterprises could be replaced by AI.
Major technology stocks showed mixed performance. Facebook, Tesla, and Amazon.com recorded slight gains, while Nvidia, Microsoft, and Google saw minor declines. Apple fell 1.43%.
In corporate news, Amazon.com surpassed Walmart to become the company with the highest annual revenue globally. As of January 31, 2026, Walmart reported 12-month sales of $713.2 billion; as of December 31, 2025, Amazon.com reported 2025 sales reaching $717 billion.
Asset management companies faced collective pressure. Blue Owl Capital announced it has entered into separate definitive agreements with four North American public pension and insurance investors to opportunistically sell $1.4 billion in direct loan investments at 99.7% of face value on February 12, 2026.
Asset management stocks were under pressure. Blue Owl Capital fell nearly 6%, while Aegon, Blackstone, and Apollo Global Management declined 5.83%, 5.38%, and 5.21%, respectively.
Energy stocks and international oil prices rose, influenced by factors including the Middle East situation. NYMEX WTI crude oil futures settled above $66 per barrel. The energy sector advanced, with Occidental Petroleum and International Seaways gaining over 9%.
International gold prices showed notable volatility recently. The latest trading session indicated COMEX gold futures were moving sideways, with geopolitical tensions providing some price support. Gold currently trades above $5,000 per ounce.