U.S. stock markets closed slightly higher on February 18th, with financial stocks leading a market rebound. Among the top 20 stocks by trading volume, NVIDIA and Meta Platforms, Inc. finalized a long-term chip supply agreement. Popular Chinese stocks were mixed: Huazhu Group gained 2.84%, while Tencent Music fell 3.19%.
Oil prices declined on Tuesday following Iran's announcement of progress in nuclear talks with the United States. Gold prices plummeted nearly 3%, and silver crashed over 5%. European equities advanced as investors rotated into defensive stocks.
On the macroeconomic front, officials from the U.S. and Iran indicated that nuclear negotiations in Geneva showed positive developments. The head of the Ukrainian negotiation team stated that the first day of tripartite talks involving Ukraine, the U.S., and Russia had concluded, with discussions set to resume the following day. The U.S. Vice President noted that U.S.-Iran talks were "progressing well in some areas." These nuclear negotiations occurred against a backdrop of significant military deployments. A U.S. official anticipated that Iran would present a detailed proposal regarding the nuclear talks within the next two weeks.
Domestically, the White House rejected the latest proposal from Democrats to end the Department of Homeland Security funding impasse. The Mayor of New York proposed the first property tax increase in over two decades, planning a 9.5% hike. The Trump administration identified more borrowers as eligible for student loan forgiveness. The SEC Chairman is advocating for modernizing disclosure rules, aiming to streamline risk factor listings. The U.S. homebuilder confidence index fell to a five-month low, weighed down by affordability concerns.
A Ukrainian official stated that the country requires at least 60 days of a complete ceasefire to prepare and organize elections. In the UK, the leading Reform Party announced its "shadow cabinet," proposing former Conservative heavyweight Jenrick as Chancellor. The Canadian Prime Minister reported smooth progress in negotiations to join the "Golden Dome" alliance. Canada unveiled a new defense industry strategy focused on domestic manufacturing to regain readiness capabilities.
In corporate news, Alphabet announced that the Google I/O developer conference will be held on May 19-20. In what were reported as Warren Buffett's final trades at Berkshire Hathaway, the company reduced its stake in Apple and initiated a position in The New York Times. Amazon.com ended a nine-session losing streak, during which its market capitalization shed over $450 billion. Meta Platforms, Inc. expanded its collaboration with NVIDIA, planning to incorporate millions of AI chips in its data center construction. Strategy continued purchasing Bitcoin, though a larger portion of the funds came from preferred stock issuance. Anthropic released a new AI model enhanced for computer operation and programming capabilities. Reports indicated Apple is accelerating development of AI glasses, a smart pendant, and camera-equipped AirPods. Ford disclosed new details about its low-cost electric platform, with the first model being a mid-size electric pickup truck. Gemini exchange announced executive departures, just months before its anticipated IPO. Palantir is relocating its headquarters to Miami, as tech firms accelerate their presence in Florida. Bayer plans to allocate $10.5 billion to settle lawsuits related to its Roundup herbicide. An SEC filing revealed that SoftBank Group has completely divested its stake in NVIDIA.
Regarding commentary, the San Francisco Fed President emphasized the need to closely monitor signals of AI's impact on the economy. Fed Governor Barr suggested that holding rates steady "for some time" might be appropriate. Chicago Fed President Goolsbee indicated that further disinflation could pave the way for continued rate cuts. Wall Street analysts projected the potential path and high costs of balance sheet reduction under a hypothetical Fed Chair Warsh. In New York forex trading, the U.S. dollar was nearly unchanged, while the New Zealand dollar strengthened ahead of a central bank meeting. Bank of America reported that fund managers significantly increased stock holdings, triggering a "sell" signal. Investor Jenny Harrington commented that dividend stocks are a good hedge against AI-related threats. Barclays expects physical AI, led by autonomous systems, to grow into a trillion-dollar market. A Wall Street regulator called for scaling back the scope of executive pay disclosures. Despite market jitters over AI, stock pickers may be poised for a strong period. In European bond markets, heightened expectations for a Bank of England rate cut pushed UK government bond prices higher. JPMorgan anticipates that disruptions caused by artificial intelligence will drive consolidation among smaller banks.