Morning Preview: February 23, 2026
Market Overview
Stock futures experienced a decline on Monday following President Trump's announcement of an immediate increase in global tariffs to 15%. This decision came after a Supreme Court ruling against Trump's previous tariffs, creating uncertainty in the global trade environment. The announcement has left markets reacting cautiously, particularly as it remains unclear if the higher tariffs have been formally enacted.
Global Concerns
In addition to trade issues, geopolitical tensions are rising with Iran as Trump urged for a nuclear agreement, warning of consequences if negotiations fail. In Mexico, violent clashes occurred following the death of a cartel leader, raising security concerns in the region.
Market Performance
In Asian markets, the Hang Seng Index rose by 668 points, while the Nikkei and Shanghai indices were closed. European markets showed mixed results, with the German DAX down 118 points and the FTSE 100 slightly up. Oil prices have eased from recent highs, and gold and silver prices have increased amid market uncertainty.
Economic Calendar
Key economic data is set to be released today, including the National Activity Index, Durable Goods Orders, and Factory Orders. Earnings reports are also anticipated from several companies, including Nvidia and Salesforce.
Sector News
Consumer Sector
Domino's Pizza reported Q4 earnings slightly below expectations but announced a 15% increase in its quarterly dividend. VF Corp was downgraded by JP Morgan, indicating potential downside in its stock price.
Energy, Industrials, and Materials
Chevron is exploring a takeover of Iraq's West Qurna 2 oil field, while Deere was downgraded despite a recent surge in its stock price. Honeywell reduced its acquisition price for Johnson Matthey’s Catalyst Technologies to secure the deal.
Financials
Crypto stocks are under pressure due to trade turmoil, with Bitcoin experiencing a decline. Major companies in the sector, including MicroStrategy and Coinbase, are seeing their shares drop.
Healthcare
Gilead Sciences announced an acquisition of Arcellx, while Merck plans to split its human health business into two divisions. Novo Nordisk's shares fell significantly after its obesity drug failed to meet key study endpoints.
Technology, Media & Telecom
Alphabet received an upgrade from Wells Fargo, while AppLovin is under investigation by the SEC. Airgain secured a significant contract for a 5G connectivity platform.
Weather and Other News
A winter storm is expected to impact the Northeast and Mid-Atlantic regions, with heavy snowfall predicted. The European Union is also pausing the ratification of its trade deal with the US, seeking more clarity on the new tariff program.
Conclusion
The market is facing a tumultuous start to the week with significant geopolitical and economic factors at play. Investors are advised to stay informed as key earnings reports and economic data are released.