Wednesday, February 18, 2026
HEAVY EVENT LOAD

Morning Brief

FOMC Meeting Minutes dominate at 7:00 PM ET. Durable goods, housing starts, industrial production, and a Bowman speech fill the slate. Meta’s massive Nvidia AI chip expansion and PANW’s −7% guidance miss are the pre-market narratives. Crude surges +2.9% on U.S.-Iran tensions; gold marches toward $5,000.

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Pre-Market Snapshot

Feb 18 — Risk-On
S&P 500 Futures
6,886
+0.38%
Broad recovery
Nasdaq 100 Futures
24,893
+0.51%
Tech leading on Meta-NVDA
Dow Futures
49,712
+0.20%
Steady
Russell 2000
2,653
−0.03%
Small caps lagging
VIX
19.94
−1.72%
Pulling back below 20
10Y Yield
4.052%
Flat
Stable
2Y Yield
3.400%
Prev close
2s/10s Spread
+65 bps
Normal slope
DXY
97.09
+0.02%
Essentially flat
WTI Crude
$64.05
+2.88%
Iran tensions spike
Brent Crude
$69.33
+2.83%
3-month highs
Gold
$4,972
+1.36%
$5,000 in sight
Bitcoin
$67,518
−0.60%
Institutional exits weighing
Ethereum
$1,986
+0.59%
Slight bounce

Large-cap tech leading with NQ +0.51% on the Meta-NVDA AI expansion deal while small-caps lag (RTY −0.03%). VIX pulling back below 20 into FOMC minutes is notable — markets not positioned for a hawkish surprise. Crude surging +2.9% on U.S.-Iran tensions is the standout. Gold at $4,972 inches toward $5,000 psychological resistance. Bitcoin struggling sub-$68K on institutional exits (Brevan Howard −30%, Founders Fund dumping ETHZilla).

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Overnight / Global

Asia Session

Nikkei +1.02% to 57,144 — Japan led, buoyed by a surge in exports (up 17% in January, China shipments soaring). Hang Seng +0.52% despite Alibaba headwinds. Kospi −0.12% dragged by NAND/memory chip shortage concerns and a potential PS6 delay from Sony. Australia −0.72%.

Europe Session

Broad strength across the board. FTSE 100 hit new highs (+0.99%), aided by cooling UK CPI inflation boosting BoE rate cut odds. DAX +0.77% with German fiscal stimulus and defense spending supporting sentiment. STOXX 50 +1.15%. European governments accelerating digital sovereignty spending — defense/tech demand tailwind.

Key Global Reads

Global risk-on tone today — a reversal from yesterday’s risk-off. Japan export data strong, European equities broadly higher, UK inflation cooling supports rate cuts globally. Crude surge on Iran tensions adds geopolitical premium. NAND shortage narrative building (Phison CEO warning of shutdowns in 2026).

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Today’s Calendar

10 Events
Time (ET)ReleaseConsensusPriorSignificance
1:30 PMCore Durable Goods Orders m/m0.3%PendingMedium
1:30 PMDurable Goods Orders m/m−1.8%PendingMedium
1:30 PMBuilding PermitsPendingLow
1:30 PMHousing StartsPendingLow
2:15 PMCapacity Utilization Rate76.6%PendingLow
2:15 PMIndustrial Production m/mPending0.4%Low
6:00 PMFOMC Member Bowman SpeaksLow
7:00 PMFOMC Meeting MinutesHIGH
9:00 PMTIC Long-Term Purchases128.6BPendingLow
9:30 PMAPI Weekly Statistical BulletinLow
FOMC Minutes at 7:00 PM are the marquee event. Markets will parse for any shift in rate path language, discussion of balance sheet policy, and views on cooling inflation vs. persistent services inflation. The steep expected decline in headline durable goods (−1.8% vs. prior +5.3%) reflects normalization after a strong prior month; the core reading (+0.3% consensus) matters more for capex trends. Mortgage rates sinking to monthly lows adds housing context. Fed Vice Chair Barr’s recent speech on AI’s labor market implications signals the Fed is thinking about structural AI-driven economic shifts.
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Thesis Watchlist

9 Sectors

Today’s Earnings

TickerSectorTimeWhat to Watch
SEDGStorage T2Before OpenAt $37.26, above SMA200 ($29.68) suggesting recent recovery. Watch for guidance on U.S. BESS demand and European residential solar trends. Beaten-down name — results set the tone for energy storage sentiment.

Pre-Market Movers (>3%)

TickerSectorMoveCatalyst
CDNSSemis+7.08%Earnings beat — strong design automation demand.
CACICyber T1+3.51%Resilient business, strategic defense demand. RSI 30 oversold bounce.
SQMStorage T1+3.33%EV battery metals index at 27-month high. Lithium catching a bid.
SCCOMinerals T2+3.19%Copper strength, BHP deal flow.
PLTRAI Infra T2+3.18%AIP momentum, analyst note.
NVDAAI Infra T1+2.00%Meta expanded deal for millions of AI chips including standalone Grace CPUs.
PANWCyber T1−6.97%Q3 profit guidance miss. Now well below SMA20 ($172), SMA50 ($182). RSI 31 — approaching deeply oversold.
BAYRYPharma−9.93%Mixed reaction to $7.25B Roundup settlement.

Notable Tier 1 Moves (>3% or RSI Extremes)

TickerSectorPriceMoveRSISignal
PANWCyber$152−6.97%31Sharpest single-day decline. Below SMA20 ($172), SMA50 ($182), SMA200 ($193) on guidance miss
CACICyber$584+3.51%30Strong bounce but RSI still deeply oversold at 30 — bounce within downtrend. Below SMA20 ($617), SMA50 ($591)
SQMStorage$74.81+3.33%33Oversold RSI bouncing on EV battery metals surge. Above SMA50 ($72.85), below SMA20 ($77.12)
ZSCyber$172−0.38%19Most oversold T1. RSI 19 — extreme. $172 vs. SMA200 $269 (−36%). Earnings Feb 26
FLNCStorage$17.88+0.56%27Deeply oversold. Well below SMA20 ($24.75) and SMA50 ($23.11)
LDOSCyber$162Flat28Deeply oversold. Below all SMAs. Defense spending tailwind intact
LEUNuclear$202+1.30%31Oversold. $202 vs. SMA20 $268 and SMA200 $237. Major pullback from highs
IONQQuantum$33.59+1.22%29Deeply oversold. $33.59 vs. SMA200 $47.39 (−29%). Infleqtion NYSE listing catalyst
CGNXRobotics$57.07Flat83Overbought. 48% above SMA200 ($38.42). Reversal risk elevated
HONQuantum$243Flat77Elevated RSI. Quantinuum IPO anticipation lifting the stock

Key Technical Levels

Bullish Setups (Oversold + Thesis)

  • ZS $172 · RSI 19 · SMA200 $269 · Earnings Feb 26
  • FLNC $17.88 · RSI 27 · SMA200 $13.50 · Above LT support
  • IONQ $33.59 · RSI 29 · SMA200 $47.39 · Quantum catalysts
  • LDOS $162 · RSI 28 · SMA200 $177 · Defense tailwind

Caution (Overbought)

  • CGNX $57.07 · RSI 83 · 48% above SMA200
  • VRT $247 · RSI 71 · 65% above SMA200, stretched

Sector Snapshot

SectorT1 SignalSummary
AI InfrastructureBullishNVDA +2.00% on Meta deal expansion; VRT +1.39% (RSI 71, extended); TSM +1.12%; ANET −2.96% lagging.
CybersecurityMixedPANW −6.97% on guidance miss; CACI +3.51% on defense strength; ZS at RSI 19 (extreme oversold); CRWD −0.78%.
Defense & AeroSteadyLHX +0.69%, LMT −0.10%, NOC +0.55%, RTX +0.20%. BAE Systems citing record order backlog.
Nuclear EnergyQuiet strengthCCJ +0.97%; VST +1.22%; CEG +0.26%. NRC granted TRISO-X HALEU license. World’s largest nuclear station agreement signed in Ontario.
Critical MineralsStrongSQM +3.33%; FCX +1.24%; SCCO +3.19%. EV battery metals index at 27-month high. BHP $4.3B silver streaming deal. Japan pledging $36B in US energy/minerals.
Energy StorageOversold bounceSQM +3.33%; FLNC +0.56% (RSI 27); TSLA +0.47%. Australia commissioned 4.9 GWh grid batteries in 2025. Lydian $689M BESS financing.
Quantum ComputingRecoveringIONQ +1.22% (RSI 29, deeply oversold); HON −0.05% (RSI 77). Infleqtion goes public via SPAC raising $550M. Pasqal delivers Italy’s first neutral atom QPU.
RoboticsBifurcatedCGNX flat (RSI 83, overbought); ISRG +0.42% (RSI 34, oversold); SYM +0.56%. IFR AI in robotics position paper.
SpaceSteadyRKLB +2.06%; LUNR +1.32%; PL +1.13%. SpaceX unveils space traffic management system. UK caps launch liability. SatVu expanding with NATO backing.

Approaching Catalysts

Next 8 Weeks
DateCatalystTickersPriority
Today 7PMFOMC Meeting Minutes — rate path language, balance sheet, inflation viewsBroad marketCritical
Feb 24CEG earnings (before open)CEG, VST, CCJHigh
Feb 25NVDA Q4 earnings — THE AI capex bellwetherNVDA, TSM, AVGO, VRT, ANETCritical
Feb 26ZS, VST, RKLB, MP earningsZS, VST, RKLB, MPHigh
Mar 3CRWD earnings — Charlotte AI monetizationCRWD, PANW, ZSHigh
Mar 4AVGO earningsAVGO, NVDAHigh
Mar 6Artemis II launchLUNR, RKLB, LMT, NOCCritical
Mar 27NRC Part 53 final ruleNuclear sectorMedium
Q1 2026AMD MI400 launchAMD, NVDAMedium
Q1 2026TerraPower construction permitNuclear sectorMedium
Q1 2026Denison Mines construction-readyDNNMedium
Q2 2026Cerebras IPO (Nasdaq)AI sectorMedium
Q2 2026FCX Grasberg phased restartFCX, SCCOHigh
May 2026Vast Haven-1 launchSpace sectorMedium
Mid-2026SpaceX IPO (~$1.5T)RKLB, PL, LUNRHigh
H2 2026L3Harris Missile Solutions IPOLHXMedium
Next week is massive — NVDA earnings on Tuesday Feb 25, followed by ZS/VST/RKLB/MP on Thursday Feb 26. NVDA is the single most important earnings print for the AI infrastructure thesis; the Meta deal expansion is a strong tailwind heading in.
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Scenario Analysis

Heavy Day

Bull Case — Dovish Minutes, AI Momentum Extends ~30%

FOMC minutes reveal dovish tilt — discussion of accelerating rate cuts, comfort with cooling inflation. Durable goods core beats. Meta-NVDA AI narrative sustains tech leadership all day.

  • FOMC minutes signal comfort with faster rate path — 10Y yield dips below 4.0%, boosting rate-sensitive sectors
  • NQ extends above 25,000 as AI narrative re-accelerates on Meta deal; NVDA tests $190+
  • VIX drops below 19, confirming vol compression into NVDA earnings next week
  • Gold breaks $5,000 psychological level on dovish Fed + Iran geopolitical bid
  • Oversold cyber names (ZS, CACI, LDOS) see dip-buying as PANW sell-off creates sector rotation opportunity
  • Crude stabilizes near $64 — enough geopolitical premium to support energy but not spike inflation fears

Base Case — Balanced Minutes, Market Holds Gains ~45%

FOMC minutes are balanced — no clear acceleration or deceleration of rate cut timeline. Market digests PANW guidance miss. Focus shifts to NVDA earnings next week.

  • Minutes confirm “data dependent” stance — no market-moving surprise. Yields flat
  • S&P holds morning gains, closes up 0.2–0.4%. NQ outperforms on Meta-NVDA momentum
  • PANW stabilizes around $150–155 — selling pressure exhausts but no bounce
  • VIX drifts in 19.5–20.5 range — elevated but not expanding
  • Crude eases off highs to $63–64 as Iran rhetoric cools slightly
  • Market enters holding pattern until NVDA Feb 25 — the definitive AI capex read

Bear Case — Hawkish Minutes, Iran Escalation ~25%

FOMC minutes reveal hawkish dissent — concerns about persistent services inflation, rate cuts pushed back further. Iran tensions escalate, crude spikes above $65. PANW contagion spreads to broader tech.

  • FOMC minutes show multiple members favoring slower cut pace — 10Y spikes above 4.1%, 2Y above 3.5%
  • Hawkish surprise reverses morning gains; S&P gives back 0.5%+ from intraday highs
  • PANW contagion hits cybersecurity — CRWD, ZS, FTNT all drop 2–4% in sympathy
  • Crude breaks above $65 on Iran escalation — reignites inflation narrative, pressures consumer discretionary
  • VIX reverses back above 21, hedging demand picks up ahead of NVDA earnings
  • Russell 2000 breaks below 2,640 as rate-sensitive small caps bear the brunt
  • Bitcoin fails $67K — Brevan Howard/Founders Fund exits trigger wider crypto selling
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Today’s Playbook

Bias: Cautiously Bullish. Tech futures leading on Meta-NVDA AI expansion, VIX declining below 20, broad global strength. But SPY trend remains bearish by the data, and FOMC minutes at 7 PM could reset sentiment entirely.

Watch For

  • FOMC Minutes (7:00 PM): The main event. Parse for rate path language, balance sheet discussion, views on services inflation persistence. Any hawkish surprise reverses the day’s risk-on tone.
  • Meta-NVDA AI expansion: Meta deploying standalone Grace CPUs and millions of AI chips. Validates the AI infrastructure capex thesis heading into NVDA earnings next week.
  • PANW guidance miss (−7%): Watch for contagion to CRWD, ZS, FTNT. RSI 31 approaching deeply oversold — but guidance misses can sustain selling.
  • Gold approaching $5,000: At $4,972 with Scotiabank saying the rally has legs. A break above $5,000 is psychologically significant for the hard asset narrative.
  • Crude surge (+2.9%): WTI at $64.05 on Iran tensions. A sustained move above $65 could shift the inflation narrative.
  • Oversold shopping list: ZS (19), FLNC (27), LDOS (28), IONQ (29), CACI (30), PANW (31), LEU (31), SQM (33) — all at extreme technical levels.
  • S&P 500 at 6,886: A sustained break above previous close 6,843 challenges the “bearish trend” designation.

Risks to Manage

  • FOMC Minutes hawkish surprise: Primary risk event. Rate path language could unwind today’s gains in minutes.
  • U.S.-Iran escalation: Crude at 3-month highs. Further escalation spikes energy costs and reignites inflation fears.
  • PANW contagion: −7% guidance miss could weigh on broader cybersecurity sentiment. Watch CRWD, ZS spread.
  • Crypto institutional exits: Brevan Howard −30%, Founders Fund dumping ETHZilla. BTC sub-$68K — risk of cascading liquidations if $65K breaks.
  • Durable goods (1:30 PM): Headline expected −1.8%. A miss on the core reading (+0.3%) would weigh on industrial/capex sentiment.
  • Overbought caution: CGNX (83), HON (77), VRT (71). Don’t chase — these are stretched.

Sector Impact

AI InfrastructureNVDA +2% on Meta deal; bullish
CybersecurityPANW −7%; CACI +3.5%; split
NuclearCCJ +1%; TRISO-X HALEU license
Critical MineralsSQM +3.3%; battery metals surging
Energy StorageOversold bounce; BESS financing
QuantumRecovering; Infleqtion IPO
DefenseSteady; BAE record backlog
SpaceRKLB +2%; SpaceX traffic mgmt
RoboticsCGNX RSI 83 caution; ISRG RSI 34
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Sources

  • Markets & Macro
  • Dow futures rise on Nvidia-Meta AI deal expansion — Meta deploying standalone Grace CPUs (Yahoo Finance)
  • Crude surges on U.S.-Iran tensions — WTI up nearly 3% (MarketWatch)
  • Mortgage rates sink to monthly lows, sparking refinance demand (CNBC)
  • 40-year Wall Street veteran tells clients to sell everything American — contrarian signal (MarketWatch)
  • European governments accelerating digital sovereignty as geopolitical tensions ramp (CNBC)
  • AI & Semiconductors
  • Meta expands Nvidia deal to use millions of AI chips, including standalone Grace CPUs with 2x perf/watt
  • AMD denies MI455X delays, Helios systems on target for H2 2026
  • GPU prices up 15% globally — $1,000 bought an RTX 5080 in Nov 2025, now only an RTX 5070 Ti
  • Phison CEO warns NAND shortages could shut down entire consumer electronics companies in 2026
  • Anthropic releases Claude Sonnet 4.6 continuing rapid AI model iteration
  • Defense & Space
  • Australia invests $2.75B in AUKUS submarine yard (Breaking Defense)
  • Sentinel ICBM to clear key milestone this year, go operational early 2030s (Breaking Defense)
  • SpaceX unveils space traffic management system (SpaceNews)
  • UK caps launch liability in timely boost for domestic market (SpaceNews)
  • SatVu expanding thermal imaging constellation with NATO-backed funds (SpaceNews)
  • Nuclear & Energy
  • NRC grants license for TRISO-X HALEU fuel manufacturing (ANS)
  • Agreement signed for “world’s largest nuclear station” at Port Hope, Ontario (ANS)
  • Australia commissioned 4.9 GWh of grid-scale batteries in 2025, matching entire 2017–2024 output (Energy Storage News)
  • Lydian Energy secures $689M for US BESS projects (Energy Storage News)
  • Cybersecurity
  • Dell RecoverPoint zero-day exploited by Chinese hackers since mid-2024 (The Hacker News)
  • Microsoft Copilot bug leaks confidential emails (BleepingComputer)
  • CISA flags four security flaws under active exploitation (The Hacker News)
  • Keenadu firmware backdoor infects Android tablets via signed OTA updates (The Hacker News)
  • Critical Minerals
  • BHP-Wheaton sign $4.3B silver streaming deal in Peru; copper-gold JV hits $9B valuation (Northern Miner)
  • EV battery metals index jumps to 27-month high (Northern Miner)
  • Caterpillar acquires mining software company RPMGlobal (Mining Technology)
  • Japan pledging $36B investment in US oil, gas, and critical minerals
  • Crypto
  • Bitcoin holds near $68K as volatility cools, but losing $70K is a warning sign (CoinDesk)
  • Brevan Howard’s crypto fund loses 30% — worst year since inception (CoinDesk)
  • Peter Thiel’s Founders Fund dumps every ETHZilla share (CoinDesk)
  • Abu Dhabi sovereign wealth funds hold $1B+ in BTC ETFs despite drawdown (CoinDesk)
  • Strategy (MSTR) purchased $168M in bitcoin last week, continuing aggressive accumulation
  • Quantum Computing
  • Infleqtion goes public on NYSE via SPAC, raising $550M (Quantum Computing Report)
  • Pasqal delivers Italy’s first neutral atom quantum computer to CINECA (Quantum Computing Report)
  • Italian court annuls $55.6M IBM quantum computing award (Quantum Computing Report)
  • Canada’s defence strategy lists quantum among high-value sectors (The Quantum Insider)
  • Data Sources
  • Schwab API (pre-market quotes, futures, yields, commodities) — 16 of 350 calls returned errors, all critical data captured
  • CoinGecko (BTC, ETH pricing)
  • Stooq (DXY, Kospi)
  • FRED (2Y yield, prev close)