Market Brief: February 24, 2026 Wall Street is navigating a period of intense volatility as a collision of trade policy shifts and technology sector fatigue triggers a defensive rotation. Investors are increasingly favoring safety over growth as uncertainty regarding global tariffs and corporate debt stability takes center stage. **Equity Markets and Tech Outlook** The technology sector is under significant pressure, with the software index retreating roughly 20% year-to-date. Concerns are mounting over the long-term viability of traditional software business models as generative AI disruption begins to materialize. Investors have specifically sold off major tech names, leading to a sharp downturn in broader indices. Corporate earnings remain a focal point. While the technology sector is projected to lead annual earnings growth with a 32.3% increase, the high capital expenditure required for AI infrastructure—estimated at $600 billion for the top five hyperscalers in 2026—is raising questions about immediate return on investment. **Trade Policy and Geopolitical Impacts** Global trade remains sensitive to shifting tariff landscapes. Although the U.S. Supreme Court recently struck down certain sweeping global tariffs, the administration’s immediate pivot to a temporary 15% import tariff on all countries has kept markets on edge. These developments have contributed to a "sticky" inflation environment, complicating the Federal Reserve's path toward interest rate cuts. Geopolitical tensions, particularly involving U.S. military postures in the Middle East and South America, are further driving the flight to safety. **Safe-Haven Assets** Gold continues its historic rally, maintaining resilience near the $5,000 per ounce level. Analysts project the precious metal could reach $5,400 per ounce by late 2027, supported by sustained central bank demand and record inflows into gold-backed ETFs. For the first time since 1996, gold has surpassed U.S. Treasuries as a share of global central bank reserves. U.S. Treasuries are also seeing heightened activity. The New York Fed is conducting Treasury security purchase operations to manage liquidity, while 10-year yields fluctuate in response to shifting expectations for a May rate cut. **Credit Market Stress** The private credit market is signaling distress, specifically within U.S. software exposure. Software firms are reportedly delaying debt deals as borrowing costs rise and lenders intensify scrutiny. Approximately 50% of software sector loans now hold a rating of B- or lower, indicating a high risk of default. Defaults in this segment are projected to rise between 3% and 5% if AI-driven market disruptions accelerate through 2026. Refinancing pressure is building, as the capacity of primary bond markets to absorb massive tech issuance is being tested.