Market Report, 2026-02-19

Major large-cap stock indices ended the day lower. The Dow Jones Industrial Average slid 268 points to 49,395. The NASDAQ edged down 0.41% to 24,797. The S&P 500 posted a mild loss of 0.28% to 6,862. The small-cap index, the Russell, gained 0.24% to 2,665, thanks to its heavier weighting in the Industrials and Energy sectors, as the prospect of possible U.S. military action boosted business prospects for firms related to defense spending and oil. Utilities, Industrials, Energy, and Communication Services posted gains, while other sectors ended the day in the red.

The bond market remained effectively unchanged, with minor rotation toward safe-haven assets. The U.S. 5-year and 10-year Treasury yields declined by 1 basis point to 3.64% and 4.07%, respectively.

Let’s move on to economic data. Jobless claims came in better than expected but were mostly in line with expectations. The U.S. trade deficit expanded more than expected, signaling that firms may have run out of inventory built up ahead of pre-tariff announcements in early 2025. Pending home sales declined further, surprising to the downside and highlighting ongoing affordability issues.

Tomorrow will be a big day, with key inflation data being released as well as the fourth-quarter U.S. GDP number. This is Adams Wealth Advisors, and we will continue to bring you market news. Thank you for listening.