PrintUS Equity Investors to Focus on AI-Disruption Trade Amid Fed's Preferred Inflation Gauge, Q4 GDP Print
BY MT Newswires | ECONOMIC | 02/17/26 06:21 AM EST06:21 AM EST, 02/17/2026 (MT Newswires) -- US equity investors will focus on factors that could help weaken the so-called artificial intelligence-scare trade, including the Federal Reserve's preferred inflation data and speeches from central bank heavyweights, as well as the strength of the economy.
* About 55 S&P 500 firms will likely report Q4 results this week, according to a D.A. Davidson note. With just about 75% of S&P 500 companies having reported Q4 results, earnings have risen by more than 12% year-over-year, ahead of consensus of over 8% as of Dec. 31. The blended earnings growth estimate, which combines reported results with remaining consensus, is calling for over 13% jump.
* Quarterly earnings outperformance is led by industrials, while underperformance is led by information technology and materials, the D.A. Davidson note said. Within the S&P 500 index, information technology firms have reported earnings and sales growth of more than 24% and over 16%, respectively. This compares with expectations of almost 26% and 18%, respectively.
* Last week, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average fell. Financials, technology, communication services, and consumer cyclicals were the worst-performing due in part to the recent launch of AI tools that are seen as disruptive for incumbents in areas such as wealth management, software and legal.
* Macroeconomic data due this week includes the Fed policy meeting minutes, personal consumption expenditures price index, Q4 gross domestic product growth rate advance estimate, S&P Global PMIs, Michigan consumer expectations final estimate, Michigan inflation expectations final estimates, and jobless claims.
* Fed heavyweights on the speaking circuit include Governors Michelle Bowman and Michael Barr, and Minneapolis Fed President Neel Kashkari, a voting member of the Federal Open Market Committee.
* Quarterly earnings due this week include Walmart
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