Indices

Indexes Waver as Dollar Strengthens

Stocks struggled to find clear direction after the long weekend.

The Nasdaq Composite led early declines, falling more than 1% in Tuesday morning trade before rebounding. All three major indexes ultimately finished modestly higher, extending a period of heightened volatility.

Lingering worries about artificial intelligence’s long-term disruptive impact weighed on markets last week, with the Nasdaq logging its fifth consecutive weekly loss. With AI spending accelerating, a record share of fund managers now believe companies may be overinvesting, according to a Bank of America survey.

Shares of General Mills fell 7% Tuesday after the Cheerios maker lowered its full-year outlook, citing soft consumer sentiment. Around one-quarter of S&P 500 companies still have to report quarterly results. So far, roughly 80% of earnings have met or exceeded expectations, according to LSEG.

This week’s holiday-shortened economic calendar includes the first estimate of October–December growth, due Friday, which will set the baseline for early-2026 expectations.

The dollar strengthened, particularly against the British pound following weak U.K. jobs data. Gold, silver, and copper prices declined.

A new survey highlights growing investor concern that companies may be overspending.

Published on February 18, 2026 | 105 views

Key Takeaways

Key takeaway: Markets faced mixed signals—AI overinvestment concerns pressured sentiment, while broad...
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Frequently Asked Questions

Why did stocks struggle for direction?

Markets faced mixed signals—AI overinvestment concerns pressured sentiment, while broadly solid earnings helped limit downside

What does a stronger dollar mean for markets?

A rising dollar typically weighs on commodities like gold and can pressure multinational earnings, while signaling relative strength in the U.S. economy.

Why are investors worried about AI spending?

Some fund managers believe companies may be overspending on AI infrastructure without clear near-term returns, raising risks to profit margins if expectations aren’t met.