Wall Street Swings Amid Tech Worries, Discouraged US Shoppers

Stocks fluctuate as companies report weaker consumer confidence and tech stocks feel AI pressure

Feb. 18, 2026 at 7:23pm

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U.S. stocks are seeing volatile trading as companies express concerns about discouraged customers and some tech stocks continue to face fallout from the artificial intelligence boom. The S&P 500 was flat after earlier swinging between small gains and losses, with the Dow up slightly and the Nasdaq down marginally. Firms like General Mills and Genuine Parts cited weaker consumer confidence, while tech giants like Alphabet also saw declines as investors worry about the risks and costs of AI investments.

Why it matters

The market volatility reflects broader economic uncertainty, with consumers struggling with high inflation, a softening job market, and concerns about tariffs. The tech sector is also facing pressure as the AI boom raises questions about the profitability of major investments in the technology. This turbulence in the markets could have wider implications for the economy and consumer confidence.

The details

General Mills, the maker of Cheerios and other food brands, cut its profit forecast for 2026, saying customer unease would likely lead to sharper declines than expected. Auto and industrial parts supplier Genuine Parts also reported weaker-than-expected results as it navigates a 'dynamic environment.' Meanwhile, tech stocks like Alphabet saw declines as investors worry about the risks and costs of AI investments, with a Bank of America survey finding a record percentage of global fund managers believe companies are 'overinvesting' in the technology.

  • The S&P 500 was flat as of 11:45 a.m. Eastern time on Tuesday, February 17, 2026.

The players

General Mills

The company behind popular food brands like Cheerios, Nature Valley, and Pillsbury.

Genuine Parts

A company that sells auto and industrial replacement parts, which plans to split into two separate publicly traded companies in early 2027.

Alphabet

The parent company of Google, which said its spending on AI and other investments could double this year to roughly $180 billion.

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What they’re saying

“Overall, the market is still close to records highs, but it may not feel that way to some investors because of the sharp sell-offs that seem to derail upswings almost as soon as they begin.”

— Chris Larkin, Managing Director, Trading and Investing, E-Trade from Morgan Stanley

The takeaway

The market volatility reflects broader economic uncertainty, with consumers struggling and the tech sector facing pressure from the costs and risks of AI investments. This turbulence could have wider implications for the economy and consumer confidence, underscoring the need for companies and investors to navigate a dynamic and challenging environment.