US Stocks Edge Higher Amid AI and Economic Concerns

Market swings reflect uncertainty around AI investment and consumer confidence

Feb. 19, 2026 at 1:47pm

U.S. stocks finished Tuesday's trading session slightly higher, but the day saw significant volatility as companies expressed concerns about their customers' economic outlook and the impact of artificial intelligence. The S&P 500 rose 0.1% after earlier swinging between gains and losses, while the Dow Jones Industrial Average and Nasdaq Composite also posted modest gains.

Why it matters

The market's turbulence reflects broader uncertainty about the economy and the potential disruption caused by the rise of AI technology. Companies across industries are grappling with how to navigate a dynamic environment marked by inflation, a weakening job market, and the threat of AI-powered competitors.

The details

Shares of General Mills fell 7% after the company warned that its customers are feeling uneasy and cut its profit forecast. Genuine Parts, an auto and industrial parts supplier, also reported weaker-than-expected results and announced plans to split into two publicly traded companies. Meanwhile, some big tech stocks like Alphabet declined, highlighting investor concerns about the costs associated with AI investment.

  • The S&P 500 rose 0.1% on Tuesday, February 17, 2026.

The players

General Mills

A consumer foods company known for brands like Cheerios, Nature Valley, and Pillsbury.

Genuine Parts

An auto and industrial parts supplier that plans to split into two publicly traded companies.

Alphabet

The parent company of Google, which is investing heavily in artificial intelligence.

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What they’re saying

“We must navigate a dynamic environment”

— Genuine Parts

The takeaway

The market's volatility reflects the broader uncertainty surrounding the economy and the potential disruption caused by the rise of AI technology. Companies across industries are grappling with how to adapt to a changing landscape marked by inflation, a weakening job market, and the threat of AI-powered competitors.