Stock Indexes Under Pressure as Megacap Tech Stocks Fall

The S&P 500 Index ($SPX) (SPY) today is down -0.52%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.07%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -1.08%.  March E-mini S&P futures (ESH26) are down -0.58%, and March E-mini Nasdaq futures (NQH26) are down -1.09%.

Stock indexes are under pressure today due to weakness in the Magnificent Seven technology stocks, which are weighing on the broader market. Also, Cisco Systems is down more than -10% after saying that higher memory-chip prices are expected to eat into its profitability.  In addition, trucking and logistics companies are selling off today.

Sandisk is up more than +7% to lead AI-infrastructure stocks higher on signs of strong global demand for NAND memory chips after Japanese chipmaker Kioxia Holdings forecasted higher demand for the technology needed to store and transfer the massive amounts of data employed in AI. 

Also, a decline in bond yields is supportive of stocks, as the 10-year T-note yield fell by 3 bp to 4.14% after weekly jobless claims fell less than expected and Jan existing home sales fell more than expected to a 16-month low. 

US weekly initial unemployment claims fell -5,000 to 227,000, showing a slightly weaker labor market than expectations of 223,000.

US Jan existing home sales fell -8.4% m/m to a 16-month low of 3.91 million, weaker than expectations of 4.5 million.

The markets this week will focus on corporate earnings results and economic news.  On Friday, Jan CPI is expected to be up +2.5% y/y, and Jan core CPI is expected to be up +2.5% y/y.

Q4 earnings season is in full swing, as more than two-thirds of the S&P 500 companies have reported earnings results.  Earnings have been a positive factor for stocks, with 78% of the 335 S&P 500 companies that have reported beating expectations.  According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth.  Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.

The markets are discounting a 6% chance for a -25 bp rate cut at the next policy meeting on March 17-18.

Overseas stock markets are mixed today.  The Euro Stoxx 50 rallied to a new all-time high and is up by +0.62%.  China’s Shanghai Composite closed up +0.05%.  Japan’s Nikkei Stock 225 fell from a record high and closed down by -0.02%.

Interest Rates

March 10-year T-notes (ZNH6) today are up by +8 ticks.  The 10-year T-note yield is down -3.2 bp to 4.140%.  T-notes are moving higher today after weekly US jobless claims fell less than expected and Jan existing home sales fell more than expected to a 16-month low, dovish factors for Fed policy.  Supply pressures are limiting gains in T-notes as the Treasury will auction $25 billion of 30-year T-bonds later today to conclude this week’s quarterly refunding of $125 billion of T-note and T-bond auctions.   

European government bond yields are moving lower today.  The 10-year German bund yield dropped to a 2.25-month low of 2.782% and is down -0.7 bp to 2.786%.  The 10-year UK gilt yield fell to a 3-week low of 4.447% and is down -2.6 bp to 4.450%.

UK Q4 GDP rose +0.1% q/q and +1.0% y/y, weaker than expectations of +0.2% q/q and +1.2% y/y.

UK Dec manufacturing production fell -0.5% m/m, weaker than expectations of-0.1% m/m.

Swaps are discounting a 3% chance of a -25 bp rate cut by the ECB at its next policy meeting on March 19.

US Stock Movers

The weakness in the Magnificent Seven technology stocks is limiting gains in the broader market and is weighing on the Nasdaq 100.  Amazon.com (AMZN) is down more than -2%, and Apple (AAPL) and Meta Platforms (META) are down more than -1%.  Also, Microsoft (MSFT) is down -0.62%, Tesla (TSLA) is down -0.53%, Alphabet (GOOGL) is down -0.16%, and  Nvidia (NVDA) is down -0.12%. 

Trucking and logistics companies are under pressure today.  CH Robinson Worldwide (CHRW) is down more than -19% to lead losers in the S&P 500, and Expeditors International of Washington (EXPD) is down more than -17%.  Also, JB Hunt Transport Services (JBHT) is down more than -7%, and Old Dominion Freight Line (ODFL) and XPO Inc (XPO) are down more than -4%.

Strength in chip makers and AI-infrastructure stocks is supportive for the broader market.  Seagate Technology Holdings Plc (STX) is up more than +9% to lead gainers in the Nasdaq 100, and Western Digital (WDC) is up more than +7%. Also, Micron Technology (MU) is up more than +2%, and NXP Semiconductors NV (NXPI), Microchip Technology (MCHP), and Analog Devices (ADI) are up more than +1%.

ICON Plc (ICLR) is down more than -35% after saying the audit committee launched an internal investigation into its accounting practices, which, in preliminary findings, indicated revenue may have been overstated “by less than 2%” in fiscal years 2023 and 2024.

Tyler Technologies (TYL) is down more than -13% after reporting Q4 total revenue of $575.2 million, weaker than the consensus of $590.8 million.

Rollins (ROL) is down more than -12% after reporting Q4 revenue of $912.9 million, weaker than the consensus of $927.3 million. 

Cisco Systems (CSCO) is down more than -10% to lead losers in the Dow Jones Industrials after forecasting Q3 adjusted gross margin of 65.5% to 66.5%, weaker than the consensus of 68.2%.

Baxter International (BAX) is down more than -10% after forecasting 2026 organic sales growth to be about flat. 

Check Point Software Technologies Ltd (CHKP) is down more than -3% after reporting Q4 revenue of $744.9 million, weaker than the consensus of $746.3 million. 

Cognex Corp (CGNX) is up more than +33% after reporting Q4 revenue of $252.3 million, well above the consensus of $239.6 million, and forecasting Q1 revenue of $235 million to $255 million, stronger than the consensus of $230.4 million. 

Zebra Technologies (ZBRA) is up more than +14% to lead gainers in the S&P 500 after reporting Q4 net sales of $1.48 billion, better than the consensus of $1.47 billion.

Equinix (EQIX) is up more than +11% after forecasting a full-year Ebitda of $5.14 billion to $5.22 billion, above the consensus of $5.02 billion.

Motorola Solutions (MSI) is up more than +10% after reporting Q4 adjusted EPS of $4.59, better than the consensus of $4.35, and forecasting 2026 adjusted EPS of $16.70 to $16.85, well above the consensus of $16.27. 

Viking Therapeutics (VKTX) is up more than +10% after it said it plans to advance its oral obesity drug to Phase 3 in the third quarter of this year. 

Howmet Aerospace (HWM) is up more than +9% after reporting Q4 revenue of $2.17 billion, above the consensus of $2.13 billion, and forecasting Q1 revenue of $2.23 billion to $2.25 billion, stronger than the consensus of $2.16 billion.

Sandisk (SNDK) is up more than +7% after Japanese chipmaker Kioxia forecasted higher demand for Sandisk’s NAND memory chips. 

Earnings Reports(2/12/2026)

Airbnb Inc (ABNB), Alnylam Pharmaceuticals Inc (ALNY), American Electric Power Co Inc (AEP), Applied Materials Inc (AMAT), Arista Networks Inc (ANET), Baxter International Inc (BAX), CBRE Group Inc (CBRE), Coinbase Global Inc (COIN), Dexcom Inc (DXCM), Entergy Corp (ETR), Eversource Energy (ES), Exelon Corp (EXC), Expedia Group Inc (EXPE), Federal Realty Investment Trust (FRT), Howmet Aerospace Inc (HWM), Ingersoll Rand Inc (IR), Iron Mountain Inc (IRM), Kimco Realty Corp (KIM), PG&E Corp (PCG), Public Storage (PSA), Tyler Technologies Inc (TYL), Vertex Pharmaceuticals Inc (VRTX), West Pharmaceutical Services Inc (WST), Wynn Resorts Ltd (WYNN), Zebra Technologies Corp (ZBRA), Zoetis Inc (ZTS).