---
title: US Stock Market Deep Audit - February 24, 2026
created: 2026-02-24
updated: 2026-02-24
type: summary
tags: ["ai-disruption", "audit", "finance", "stocks", "us-market"]
external: http://go/ui/posts/2066/
---

# 📊 US Stock Market Deep Audit — February 24, 2026

**Report Date:** Tuesday, February 24, 2026  
**Prepared:** Australia/Melbourne Time 8:30 AM  
**Market Status:** US markets closed Monday Feb 23 with significant declines

---

## 📈 Market Indices Performance

### Monday, February 23, 2026 — Sharp Decline
| Index | Performance | Points Change |
|-------|-------------|---------------|
| **S&P 500** | -1.2% | Down significantly |
| **Nasdaq 100** | -1.2% | Tech-heavy decline |
| **Dow Jones** | -1.6% | -800 points |

**Key Context:** All three major indices erased gains from the previous session as renewed uncertainty over US trade policy drove markets to trim positions on riskier assets.

### Friday, February 20, 2026 — Recovery Session
| Index | Performance | Weekly Result |
|-------|-------------|---------------|
| **S&P 500** | +0.69% | Closed at 6,909.51 (+1.1% for week) |
| **Nasdaq Composite** | +0.9% | 22,886.07 (snapped 5-week losing streak) |
| **Dow Jones** | +0.47% | 49,625.97 (+0.3% for week) |

**Key Context:** Markets rallied after the Supreme Court struck down Trump's emergency tariffs, providing temporary relief.

### Wednesday, February 18, 2026
| Index | Performance | Close |
|-------|-------------|-------|
| **S&P 500** | +0.56% | 6,881.31 |
| **Nasdaq Composite** | +0.78% | 22,753.63 |
| **Dow Jones** | +0.26% | 49,662.66 (+129.47 points) |

**Key Context:** Gains supported by technology names as traders weighed the release of Federal Reserve meeting minutes.

---

## 🎯 Key Market Drivers

### MACROECONOMIC FACTORS

#### 1. Federal Reserve Policy
- **Current Fed Funds Rate:** 3.75%
- **January FOMC Meeting:** Rates were paused, ending a string of three consecutive cuts
- **Market Pricing:** Expectations for steady policy over the next few months
- **10-Year Treasury:** Trading near 4.0%–4.25% range
- **Analyst View:** Schwab's Kathy Jones notes "I don't think it's a done deal by any means that there's going to be some rate cuts"

#### 2. Trade Policy Uncertainty
- **Supreme Court Ruling:** Struck down Trump's emergency tariffs, providing brief market relief
- **Ongoing Concern:** New tariff moves continue to cloud the monetary policy trajectory
- **China Leverage:** Supreme Court ruling boosts China's leverage ahead of April summit
- **Impact:** Tariff uncertainty causing investors to trim riskier positions

#### 3. Geopolitical Tensions
- **US-Iran Tensions:** Driving oil prices to 6-month highs
- **Military Strike Considerations:** Trump considering limited military action against Iran
- **Energy Impact:** Oil prices stable but elevated on conflict concerns

---

### INDUSTRY-SPECIFIC DRIVERS

#### 🔥 AI DISRUPTION FEARS — MAJOR MARKET THEME

**IBM (-13% Monday)**
- **Catalyst:** Anthropic announced Claude Code can automate COBOL (Common Business-Oriented Language) modernization
- **Impact:** Direct threat to IBM's legacy mainframe business
- **February Performance:** Down 26% month-to-date, on track for worst monthly decline since at least 1968
- **Intraday Drop:** Biggest since March 2020

**Cybersecurity Stocks**
- **Sector Decline:** Dropped for second consecutive day
- **Driver:** Anthropic AI tools fueling disruption fears across software sector
- **Notable Moves:** CrowdStrike and peers under pressure
- **Analyst View:** Some analysts recommending "buy the dip" on cybersecurity names

**Software & Payment Shares**
- **Broad Decline:** Sector sinking on AI-related business model threats
- **Concerns:** Automation could reduce demand for traditional software services
- **Nassim Taleb Warning:** Black Swan author warns on potential software bankruptcies and increased volatility

#### 🏭 OTHER SECTOR MOVERS

**Gold**
- **Performance:** +3.31% to $5,249/oz
- **Driver:** Safe-haven buying amid geopolitical tensions and soft U.S. data

**Energy/Natural Gas**
- **Catalyst:** Major winter storm slams U.S. northeast
- **Impact:** NYC issues travel ban; natural gas prices surge

**Retail & Technology**
- **Performance:** Outperforming other sectors
- **Context:** Benefiting from rotation away from AI-vulnerable names

**Real Estate (Dividend-Paying)**
- **Performance:** Outperforming as investors seek yield amid AI fears

---

## 📰 Notable Corporate News

### Eli Lilly
- Launched new form of obesity drug Zepbound with month's worth of doses in single pen
- Continued leadership in GLP-1 weight management space

### ServiceNow (NOW)
- Executives canceled all future planned stock sales
- CEO entered share purchase agreement to buy $3M of common stock
- Viewed as confidence signal amid AI disruption concerns

### Arcellx, Novo Nordisk, Domino's Pizza
- Making significant pre-market moves on company-specific news

---

## 🌍 Global Market Context

### Asia-Pacific
- **South Korea Kospi:** Hit fresh record highs for second consecutive session
- **Regional Sentiment:** Brushing off Trump's latest tariff moves
- **CIO View:** Asia's market rally is sustainable, but U.S. pullback remains key short-term risk

### Europe
- **Stoxx 600, FTSE, DAX, CAC:** Ended lower reacting to new Trump tariffs
- **UK Business:** Companies seeking deeper ties with Europe as Trump tariffs fuel uncertainty

### Currencies
- **US Dollar:** Dipped after Supreme Court tariff ruling
- **Euro:** $1.18 (+0.03%)
- **Pound:** $1.35 (+0.09%)
- **Wells Fargo View:** Expectations of dollar decline are "overdone"

---

## 💡 Analyst Commentary & Outlook

### Key Quotes
- **On Fed Policy:** "This will likely cloud the monetary policy trajectory, especially with a new Fed chair coming on board" — Schwab strategist
- **On AI Disruption:** "Investor sentiment around this space remains cautious and skeptical on lingering AI disruption concerns" — Schwab's Peterson
- **On Software Risk:** Nassim Taleb warns of potential software bankruptcies and increased volatility ahead

### Technical Levels to Watch
- **NYSE Insider Jay Woods:** Watching key Nvidia levels as tell for S&P 500 direction
- **Katie Stockton:** "Stars are aligning" for select country ETFs

---

## 📊 Market Summary

**Overall Tone:** Cautious and volatile with AI disruption emerging as a new systemic risk factor

**Key Themes:**
1. AI disruption fears replacing traditional macro concerns
2. Trade policy uncertainty continuing to weigh on sentiment
3. Fed policy on hold with uncertain trajectory
4. Sector rotation from AI-vulnerable names to defensive/dividend plays
5. Geopolitical tensions adding energy price pressure

**Weekly Performance Recap:**
- Nasdaq: Snapped 5-week losing streak with +1.5% gain
- S&P 500: +1.1% weekly advance
- Dow: Modest +0.3% weekly gain

---

## 📅 Upcoming Watch Items

- Continued developments on US-Iran tensions
- Potential Fed Chair transition updates
- April US-China summit preparations
- Earnings season approaching finish line (425 of S&P 500 companies reported)

---

*Report compiled from CNBC, Bloomberg, CNN Business, Trading Economics, and market analyst commentary.*

**Tags:** #finance #stocks #us-market #audit #ai-disruption #fed-policy #tariffs
