Daily Brief - February 23, 2026 (Morning)

 ## Pre-Market Overview U.S. equity futures are mixed ahead of the open, reflecting cautious investor sentiment amid ongoing tariff uncertainties and mixed earnings reports. The S&P 500 and Nasdaq 100 futures show modest gains, with **SPY** up 0.37% and **QQQ** up 0.34%, while the Dow Jones and Russell 2000 futures are slightly lower, indicating a cautious tone in large-cap and small-cap stocks respectively. Overnight, Asian markets showed resilience despite the U.S. Supreme Court striking down some of former President Trump’s tariffs, which has introduced fresh uncertainty into trade policy. Hong Kong and South Korea markets advanced, buoyed by easing tariff concerns and optimism around semiconductor demand. European shares, however, retreated on renewed trade uncertainty, with the DAX leading losses. The U.S. dollar softened, while gold surged 2.97%, reflecting safe-haven demand amid geopolitical and trade jitters. Key overnight developments include the U.S. Supreme Court ruling against Trump’s tariffs, which is expected to have broad implications for trade-sensitive sectors. Meanwhile, biotech and pharmaceutical stocks are in focus following Eli Lilly’s launch of a new multi-dose weight-loss drug device and FDA approval of a gastric balloon for obesity treatment. These developments set the stage for a session driven by trade policy clarity, healthcare innovation, and AI-related earnings. ## Top Stories Moving Markets - **Eli Lilly Launches Multi-Dose Weight-Loss Drug Device in U.S.** Eli Lilly has introduced a new form of its obesity drug Zepbound, featuring a month’s worth of doses in a single pen. This innovation could enhance patient adherence and market penetration. The news is a positive catalyst for **$LLY**, which is already up 2.23%, and may pressure competitors like **$NVO** (Novo Nordisk), which saw shares plunge 10% after a disappointing weight-loss trial result. - **U.S. Supreme Court Strikes Down Some Trump Tariffs** The Supreme Court ruled against certain tariffs imposed during the Trump administration, creating uncertainty around U.S. trade policy. This has led to a softer dollar and a surge in gold prices. Trade-sensitive sectors, including industrials and consumer discretionary, could see volatility. Stocks like **$XOM** (-2.12%) and **$COP** (-1.07%) may feel pressure due to tariff-related supply chain concerns. - **ASML Unveils EUV Light Source Advance** ASML announced a breakthrough in its Extreme Ultraviolet (EUV) lithography technology that could increase chip production by 50% by 2030. This is a significant development for the semiconductor industry, benefiting suppliers and chipmakers alike. Stocks such as **$ADI** (+2.37%), **$MRVL** (-0.84%), and **$NVDA** (+1.59%) are likely to react positively as this innovation supports the ongoing AI-driven chip demand. - **Gilead Sciences Acquires Arcellx for $7.8 Billion** Gilead is making a major bet on next-generation CAR T-cell therapy for multiple myeloma by acquiring Arcellx. This deal underscores Gilead’s commitment to expanding its oncology portfolio. **$GILD** (-0.97%) may see mixed reactions as investors weigh the acquisition cost against long-term growth potential. - **Domino’s Pizza Raises Dividend and Reports Strong Store Growth** Domino’s Pizza reported solid Q4 results with a 15% dividend hike and 392 new stores added globally. The company also expects 3% same-store sales growth in 2026. This positions **$DPZ** (+5.92%) as a defensive consumer discretionary play with steady income growth potential. ## Stocks to Watch Today - **$LLY** – Launch of multi-dose obesity drug device expected to boost sales and market share. - **$NVO** – Shares down 10% after a weight-loss drug trial failed to match Eli Lilly’s results. - **$ASML** – EUV technology advance could drive long-term semiconductor industry growth. - **$GILD** – $7.8 billion acquisition of Arcellx to expand cancer treatment portfolio. - **$DPZ** – Strong Q4 results and dividend hike highlight growth and income potential. - **$ADI** – Beneficiary of semiconductor cycle recovery and ASML technology progress. - **$GOOGL** – Shares up 4.74% on AI-related growth optimism and backlog strength. - **$ETSY** – Shares surged 7.10% following Depop sale and positive rating reaffirmation. - **$SNOW** – Stock down 4.58% amid margin concerns and price target cut by Stifel. - **$BX** – Shares down 4.58% after mixed earnings and cautious outlook. - **$U** – Unity added as a new long by Hedgeye with 50% upside target, shares down 1.65%. - **$PL** – Shares down 6.81% despite strategic expansion announcements. ## Sector Setup - **Technology:** Slightly negative with **XLK** down 0.16%, pressured by earnings concerns at software companies like **$SNOW** and **$ADBE** (-1.70%). However, semiconductor suppliers like **$ADI** and chipmakers like **$NVDA** are supported by ASML’s EUV advances and AI demand. - **Healthcare:** Mixed to slightly negative with **XLV** down 0.17%. Positive momentum for obesity drug innovators like **$LLY** contrasts with pressure on **$NVO** after trial setbacks. - **Energy:** Weakness persists with **XOM** (-2.12%) and **XLE** (-0.25%) pressured by tariff uncertainty and softening oil prices despite a modest rise in crude futures. - **Consumer Discretionary:** Outperforming with **XLY** up 0.43%, led by strong results and dividend growth at **$DPZ** and positive retail momentum at **$ETSY**. ## Economic Calendar & Fed No major economic releases or Federal Reserve events are scheduled for today. Market focus remains on earnings reports and geopolitical developments, particularly trade policy and tariff rulings. ## Crypto & Commodities - **Bitcoin** is down 1.98% at $66,269, pressured by recent whale selling and tariff jitters. - **Ethereum** also declined 1.73% to $1,923 amid similar headwinds. - **Gold** surged 2.97% to $473.21, reflecting safe-haven demand triggered by tariff uncertainty and geopolitical risks. - **Oil** prices are modestly higher, with USO up 0.16% to $81.32, despite ongoing U.S.-Iran nuclear talks and tariff-related supply concerns. ## Trading Game Plan - Monitor tariff developments closely; the Supreme Court ruling has introduced uncertainty that could cause volatility in trade-sensitive sectors like energy, industrials, and consumer discretionary. - Favor healthcare innovators, especially those with new obesity treatments like **$LLY**, while being cautious on competitors facing trial setbacks such as **$NVO**. - Technology remains a mixed bag: overweight semiconductor suppliers benefiting from ASML’s EUV advances and AI demand, but cautious on software companies facing margin pressures. - Consumer discretionary offers selective opportunities, notably in companies with strong dividend growth and resilient sales like **$DPZ** and **$ETSY**. - Watch crypto markets for continued volatility amid whale activity and regulatory scrutiny; gold remains a key safe-haven asset to hedge against trade and geopolitical risks.