The American stock market opened lower on February 17, 2026. This is the first session after Presidents' Day, with the S&P 500 index trading at around 6,840 at the time of publication. The index fell by about 0.65% (approximately 44 points) from its highest level on Friday, but it has risen by about 0.58% since the opening today. This indicates buyer intervention across sectors.
Ongoing fears of 'SaaSpocalypse' that traditional software and technology models could alter are pressuring the market. This makes Information Technology the weakest sector, down 1.5% during the day. Synopsys (SNPS) tops the lagging teams with a decline of 1.6% amid broader AI concerns.
Top news from the US stock market:
• Empire State Manufacturing Index: The New York Federal Reserve survey showed moderate regional expansion in February at +7.1. This is slightly below +7.7 in January but above expectations. This leading indicator of US factory activity provides some reassurance against slowdown fears.
• Canadian Consumer Price Index decline: Overall inflation in January fell to 2.3% year-on-year (from 2.4%), driven by lower gasoline prices. The weaker print reinforces the narrative of declining inflation and may showcase similar trends in US data, supporting Federal Reserve hopes of rate cuts.
• Resumption of indirect talks between the US and Iran: Discussions today in Geneva focused on nuclear issues and de-escalation. Progress could help stabilize oil markets and reduce volatility in energy and global trade sectors.
The S&P 500 index tests a key level amid rising AI disruption fears on Wall Street.
Wall Street remains cautious on February 17, 2026, as the US stock market traded mixed but generally lower amid ongoing fears of SaaSpocalypse. The S&P 500 index opened weaker, briefly dipping below its 100-day EMA before regaining it.
The index settled around 6,834–6,841 in the middle of the session, down 0.65% during the day from its peak on February 13.
The trend indicates that the market may recover slightly, but the key to a broader recovery lies above the peaks recorded on February 13 (Friday).
This reflects a scenario from late November 2025. The pure adjusted index for 100 days dropped on November 28 but quickly regained it in the following session, leading to a strong rally. The S&P 500 rose about 7.38% from late November to late January.
Since then, the 100-day EMA has been a strong support. The main support now lies around this area, at about 6,819. A close below may invite broader weakness towards 6,762 and 6,705. A decisive push above 6,889 (above Friday's high) may target the psychological level of 7,000.
However, inflationary recession-like fears (mass inflation, slowing growth) and AI disruption anxiety limit the upside conviction.
The Nasdaq Composite trades more damaged, highlighting the technical accumulation. The S&P 500 index's 33% weight in tech amplifies the impact on the broader index.
The VIX index, a measure of volatility, fell 1.08% to 20.97 (from higher levels earlier in the session), indicating a decrease in volatility as the day progressed, although it remains high compared to recent lows and reflects caution.
The yield on the 10-year US Treasury bond is 4.05% (a moderate decline today, near its lowest level in 2.5 months).
Reflects safe-haven flows and weak inflation expectations; supportive of bonds but weighing on growth stocks and cryptocurrencies amid delayed rate cut bets.
Sector rotation in focus: defenses shine while technology slows.
The mixed change in the US stock market on February 17, 2026, reveals a clear volatility across sectors. Technology (XLK) is the standout laggard, down about 1.24% from its peak on February 13 (currently trading at -0.37% that day).
XLK is the SPDR fund for the selected technology sector, managed by State Street Global Advisors, one of the leading sector ETFs that divides the S&P 500 index into 11 GICS sectors for targeted exposure.
The name tracks major technology names (Nvidia, Microsoft, Apple) and software/semiconductor companies. This makes XLK sensitive to growth sentiments and AI-related developments.
The XLK chart shows an evolving head and shoulders pattern, which is a bearish structure. The neckline is stable near 133; a decisive break below may confirm the pattern and trigger a 10% downward move (measured from the head to the neckline), potentially pushing towards 129 or even 120 in a deeper correction if broader market conditions worsen or AI fears escalate.
The utilities sector (XLU) continues to show relative strength after rising 2.5% on Friday. Although the index fell 0.40% today in line with broader weakness, the sector remains the strongest weekly performer.
This flow, from growth/tech to defenses and value, explains why the S&P 500 can trade from dip to dip despite green pockets: the tech index's 33% weight amplifies XLK's weakness, overshadowing gains elsewhere.
The negative setup cancels out at recovery 141–144; a move above 150 will completely negate the threat.
Synopsys (SNPS) fell 4.4% as AI concerns deteriorated over software stocks.
Synopsys (SNPS) is one of the standout companies in the US stock market. It is trading around 419 after declining 4.43% during the day, at the time of this report.
As a leading provider of software and intellectual property for semiconductors in EDA, SNPS is closely tied to the software infrastructure sector. This makes it vulnerable to ongoing concerns that AI may reshape chip design workflows.
In the selected technology sector SPDR fund (XLK), SNPS has a modest weight of 0.72%. This limits its direct impact on exchange-traded index funds but serves as a strong indicator of software weakness (like ORCL -3.85%, CRWD -5.12%, FTNT -4.11%).
The daily chart shows that SNPS is trading within a bearish flag pattern after a 24% correction that began on January 12, 2026, with the rebound/consolidation on February 4 keeping the price contained within the flag. It attempted to break down today, but buyers have defended it so far.
A confirmed break below 416 could activate the pattern, anticipating a decline towards 322 (over 20% from current levels). Medium support levels lie at 402 and 371.
The negative setup cancels out at recovery 451. This reinforces the shift from software/growth names to defensive names, increasing relative pressure on Nasdaq.
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