Market Analysis Summary - February 24, 2026
In a turbulent trading session, U.S. stock benchmarks experienced significant declines, primarily driven by fears surrounding AI disruptions and uncertainties related to tariffs. The S&P 500 fell by 71 points (1.0%) to close at 6,837, while the Nasdaq 100 dropped 303 points (1.2%) to 24,708. The Dow Jones Industrial Average also saw a substantial decline, losing 821 points (1.7%) to finish at 48,804.
Key Highlights
- IBM's Major Loss: International Business Machines Corp. (IBM) faced a staggering 13.0% drop, marking its largest single-day loss in over 25 years. This sell-off was triggered by concerns following AI startup Anthropic's announcement of a new tool, Claude Code, aimed at modernizing COBOL, which is integral to IBM's mainframe business.
- Sector Performance: The financial sector led the losses, down 3.3%, followed by consumer discretionary and technology sectors. Conversely, consumer staples and healthcare sectors managed to remain in the green.
- Tech Sector ETF Performance: The iShares Expanded Tech-Software Sector ETF (IGV) fell nearly 5.0%, approaching a critical support area between US$76.07 and US$77.18, with a potential breakout southward posing risks for the sector.
- Gold and Silver Prices: Spot Gold and Silver prices showed recovery, with Gold attracting bids above the US$5,000 level. However, a shift in risk appetite led to a 0.9% decline in Gold, ending a four-day winning streak.
Trump's Tariff Announcement
The Supreme Court's recent ruling, which struck down President Trump's reciprocal tariffs, has added to market uncertainty. The court determined that the 1977 International Emergency Economic Powers Act (IEEPA) did not grant the President the authority to impose these tariffs. In response, Trump announced a 10% blanket tariff on all countries under Section 122, which will remain in effect for 150 days unless extended by Congress. This announcement has replaced previously negotiated tariff agreements, further complicating the market landscape.
Looking Ahead
Today's market drivers include the Conference Board's February consumer confidence numbers and the Fed Bank of Richmond's regional manufacturing survey. Analysts expect consumer confidence to rise to 87.0 from 84.5 in January. A significant deviation from these estimates could impact the USD and market sentiment. Additionally, several Federal Reserve officials are scheduled to speak, with market expectations leaning towards a hold decision in March, while the possibility of a rate cut in June remains uncertain.
Conclusion
The combination of AI-related fears, tariff uncertainties, and sector-specific challenges has created a volatile market environment. Investors are advised to stay informed on upcoming economic indicators and Fed communications that could influence market direction in the near term.