Stock Market Ends Mixed Amid AI Concerns and Consumer Weakness

S&P 500 closes flat as tech volatility and consumer spending worries offset some sector gains

Published on Feb. 20, 2026

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U.S. stock markets finished Tuesday with modest gains after a day of fluctuating trading, as concerns about consumer spending and the impact of artificial intelligence weighed on investor sentiment. The S&P 500 closed up 0.1%, while the Dow Jones Industrial Average rose slightly. The Nasdaq composite also edged up 0.1%. Sectors saw a stark contrast, with entertainment company Paramount Skydance gaining 4.9% on a potential bidding war, while consumer brands like General Mills fell 7% on weaker profit forecasts.

Why it matters

The mixed market performance reflects ongoing uncertainty around the economic outlook, with consumer confidence and spending under pressure from inflation and a sluggish job market. Meanwhile, the tech sector is grappling with the potential disruption of AI, leading to volatility in stocks like Alphabet and Nvidia as investors reassess the risks and opportunities.

The details

General Mills lowered its profit forecast for 2026, citing growing unease among its customers. Genuine Parts, an auto and industrial parts supplier, fell 14.6% after reporting weaker-than-expected quarterly results and announcing plans to split into two publicly traded entities. Big Tech stocks like Alphabet saw volatility, with investors concerned about the potential impact of AI competition and overspending on related initiatives.

  • The stock market trading took place on Tuesday, February 18, 2026.

The players

S&P 500

A stock market index that tracks the performance of 500 large-cap U.S. publicly traded companies.

Dow Jones Industrial Average

A stock market index that tracks 30 large publicly traded companies.

Nasdaq Composite

A stock market index that tracks the performance of over 3,000 stocks listed on the Nasdaq stock exchange.

Paramount Skydance

An entertainment company that saw a 4.9% stock increase after Warner Bros. Discovery indicated it would allow Paramount to submit a final bid for the company.

General Mills

A consumer goods company known for brands like Cheerios and Pillsbury that experienced a 7% stock drop after lowering its profit forecast for 2026.

Genuine Parts

An auto and industrial parts supplier that fell 14.6% after reporting weaker-than-expected quarterly results and announcing plans to split into two publicly traded entities.

Alphabet

The parent company of Google that saw volatility in its stock price amid concerns about the potential impact of AI competition.

Nvidia

A key player in the AI sector that experienced fluctuating stock performance, initially weighing on the market before recovering.

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What they’re saying

“Markets need to see stabilization in these key tech companies and a reduction in 'sell first/ask questions later' behavior from investors.”

— Sameer Samana, Head of global equities and real assets at Wells Fargo Investment Institute

The takeaway

The mixed market performance reflects the ongoing uncertainty around the economic outlook, with consumer confidence and spending under pressure, while the tech sector grapples with the potential disruption of AI. Investors will be closely watching for signs of stabilization in key tech stocks and a reduction in the 'sell first/ask questions later' mentality that has contributed to the market volatility.