Global Market Brief: February 18, 2026 Global financial markets are navigating a complex landscape defined by shifting technology valuations and heightened geopolitical tension. Following the mid-February U.S. holiday, trading has resumed with a pronounced divergence between traditional industrials and the high-growth technology sector. Equity Indices and Tech Volatility The **S&P 500** recently surpassed the **7,000** level for the first time, though it remains in a volatile consolidation phase near **6,940**. The **Dow Jones Industrial Average** has shown relative strength, reaching record highs above **50,000**, supported by blue-chip resilience in the energy and industrial sectors. In contrast, the **Nasdaq Composite** has faced downward pressure, recently trading around **23,025**. A significant "SaaSpocalypse" sell-off is impacting software firms as investors re-evaluate license demand in the age of autonomous AI agents. While hardware and infrastructure providers continue to see record capital expenditure, software-as-a-service valuations are under scrutiny. Economic Indicators and Monetary Policy U.S. labor data remains surprisingly robust, with **130,000** jobs added in January, far exceeding expectations of **70,000**. The unemployment rate has settled at **4.3%**. Despite this strength, annual inflation has slowed to **2.4%**, the lowest rate since early 2021. Markets are currently pricing in two interest rate cuts for the remainder of 2026. The nomination of Kevin Warsh as the next Federal Reserve Chair has provided some institutional stability, though his future policy leanings remain a central focus for fixed-income traders. Commodities and Energy Energy markets are reacting sharply to tensions in the Middle East and South America. Crude oil prices rose **14.6%** in January to reach **$69.70** per barrel. Tensions in the Strait of Hormuz, through which **21 million** barrels of oil pass daily, continue to inject a risk premium into global energy costs. Precious metals have reached historic levels as a hedge against volatility. Gold, which surged throughout 2025, is currently trading near **$4,300** per ounce. Silver has experienced sharper corrections, recently dipping toward the **$74.85** mark. Global Outlook and Trade International markets are increasingly defined by new trade alliances. India and the European Union have progressed toward a landmark free trade agreement. India’s economy continues to outpace global peers with a real growth rate projected at over **7%** for the year. European benchmarks like the **EURO STOXX 50** are struggling with sluggish luxury demand, while Japan's **Nikkei 225** remains under pressure as the domestic economy maintains a fragile recovery from a near-recession.