LIVE MARKETS-AI-blamed rolling corrections weigh, but bulls look for a second wind

ReutersFeb 17, 2026 5:13 PM

Main US stock indexes flat to slightly lower
Energy leads S&P 500 decliners; Financials up most
Euro STOXX 600 index up ~0.5%
Dollar rises; crude declines; bitcoin off ~2%; gold falls >2%
US 10-Year Treasury yield edges down to ~4.05

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AI-BLAMED ROLLING CORRECTIONS WEIGH, BUT BULLS LOOK FOR A SECOND WIND

The recent AI-blamed selloff kicked off with the software industry, triggering renewed fears that AI companies will adversely affect their businesses.

Soon after, the sector version of whack-a-mole set in, initiating rolling corrections in such groups as transportation, wealth management, insurance, and commercial real estate in succession, causing investors to wonder, “Where next?"

"CFRA analysts caution investors against getting caught up in the emotional instability generated by these selloffs. They remind us that AI will indeed offer cost savings from increased efficiencies and depth of analysis, but these should aid companies by making them nimbler and more profitable," writes Sam Stovall, chief investment strategist at CFRA, in a note out early Monday.

He adds equity markets are going through a much-needed digestion of gains.

However, he says that "like an eventual gold medal winner that trails at mid-race, the S&P 500 could still close the gap and record its second monthly gain in 2026." (After rising about 1.4% in January, the S&P 500 .SPX currently stands down 1.4% for the month of February so far.)

According to his research, Stovall says that, historically, an S&P 500 price increase in both January and February since World War Two led to an average full-year total return in excess of 24%, along with a 100% frequency of advance.

(Terence Gabriel)

EARLIER ON LIVE MARKETS:

TWO-FER TUESDAY: EMPIRE STATE, HOMEBUILDER SENTIMENT CLICK HERE

NASDAQ LEADS DECLINES ON WALL STREET AFTER LONG WEEKEND CLICK HERE

MEGA-CAPS MAY BE STUMBLING, BUT THE EQUAL-WEIGHTED S&P 500 IS RUMBLING CLICK HERE

BEWARE THE YEAR OF THE HORSE CLICK HERE

STOXX OFF TO STEADY START, CALM UNDER THE SURFACE CLICK HERE

BEFORE THE BELL: EUROPEAN FUTURES DIP CLICK HERE

QUIET MARKETS, LOUD DIPLOMACY: ALL EYES ON IRAN CLICK HERE

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