Market Summary - February 26, 2026

On February 26, 2026, the US stock market exhibited a softening sentiment, with the Nasdaq 100 (US100) declining by 1% amid notable weakness in Nvidia shares, which fell over 3% despite the company reporting a record-breaking quarter and optimistic forward guidance. The S&P 500 also slipped by 0.3%, while the Dow Jones Industrial Average and the Russell 2000 showed slight outperformance, trading within a range of 0.15% to 0.3%.

Economic Indicators

Initial jobless claims in the U.S. increased slightly to 212,000 for the week ending February 21, up 4,000 from the previous week, but remained below the Dow Jones consensus of 215,000. The four-week moving average rose marginally to 220,250, while continuing claims fell by 31,000 to 1.833 million. This data suggests that employers are not making significant layoffs despite a slowdown in hiring, indicating a potential pause in Federal Reserve policy easing.

Nvidia's Performance

Nvidia's shares are experiencing a decline, trading below $190 per share, despite the company reporting strong quarterly results and robust expectations for the upcoming quarter. The market's reaction reflects a broader concern about the sustainability of growth amidst rising competition and market dynamics.

Heico's Earnings Report

Heico Corporation (HEI.US), a key player in the aerospace and defense sector, saw its shares plummet by nearly 13% following its earnings release. The company reported a record first-quarter profit with a 14% year-over-year revenue increase to $1.18 billion, and a diluted EPS of $1.35, surpassing expectations. However, investor sentiment was dampened by margin pressures in its Electronic Technologies Group (ETG), which faced a less favorable product mix and declining profits.

Key Financial Figures for Heico:

• Revenue: $1.18 billion (+14% YoY)
• Net Income: $190.2 million (quarterly record)
• Diluted EPS: $1.35 (vs. $1.29 expected)
• EBITDA: $312 million (+14% YoY)
• Operating Cash Flow: $178.6 million

Segment Performance:

Flight Support Group (FSG)

• Revenue: $820 million (+15% YoY)
• Operating Income: $200.7 million (+21% YoY)
• Operating Margin: 24.5%

Electronic Technologies Group (ETG)

• Revenue: $370.7 million (+12% YoY)
• Operating Income: $73.2 million (slight decline)
• Operating Margin: 19.8%

Despite the solid headline results, the market's focus on margin quality and sustainability has raised concerns about the near-term profitability of Heico, particularly in the ETG segment. Management remains optimistic about fiscal 2026, citing sustained sales momentum driven by organic demand and acquisitions.

Corporate News Highlights

• J.M. Smucker: +5% after better-than-expected fiscal third-quarter results.
• Lantheus Holdings: -5% after issuing weaker-than-expected full-year guidance.
• Array (ARRY): -25% after missing 2026 adjusted EBITDA guidance.
• C3.ai (AI): -25% after cutting full-year revenue guidance.
• Celsius Holdings (CELH): +12% after beating fourth-quarter estimates.
• Driven Brands (DRVN): -3% following a 30% plunge due to accounting errors.
• GoodRx (GDRX): -15% on weak 2026 revenue outlook.
• IonQ (IONQ): +13% after beating fourth-quarter expectations.
• Mosaic (MOS): -3% after a downgrade by JPMorgan.
• Nubank (NU): -5.1% due to higher costs offsetting net income growth.
• Nutanix (NTNX): +15% after AMD's $150 million equity investment.
• Papa John’s (PZZA): -3.4% on weaker-than-expected sales.
• Perrigo (PRGO): -7.6% after missing profit estimates.
• Trade Desk (TTD): -16% on weak first-quarter guidance.
• Salesforce (CRM): +2% after providing stabilizing sales growth guidance.

This summary encapsulates the key market movements and corporate earnings reports as of February 26, 2026, highlighting the ongoing dynamics in the U.S. stock market.