Daily Brief - February 24, 2026 (Morning)

 ## Pre-Market Overview U.S. equity futures are steady to slightly higher this morning following a strong rebound in major indexes yesterday. The S&P 500 futures indicate a modest gain, reflecting optimism after the Supreme Court ruling on tariffs and easing AI-related fears. Asian markets showed resilience with the Nikkei 225 up 0.83%, while Chinese stocks reopened higher on tariff relief hopes and Lunar New Year spending. European markets are poised for a broadly positive open, supported by easing trade tensions and tariff uncertainty. Market sentiment is cautiously optimistic as investors digest the Supreme Court decision that effectively limits the Trump administration’s tariff strategy, reducing the risk of prolonged trade disruptions. However, AI disruption fears remain a key theme, causing volatility in software and tech stocks overnight. The combination of tariff relief and AI optimism is setting the stage for a potentially strong session, especially for technology and consumer discretionary sectors. ## Top Stories Moving Markets - **Supreme Court Tariff Ruling and New Trump Tariffs Take Effect** The Supreme Court ruling has thrown the Trump administration’s tariff strategy into flux, with new 10% global tariffs now in effect for 150 days. This development introduces uncertainty but is largely viewed as a peak in tariff escalation, potentially easing trade tensions. Stocks sensitive to trade policies, especially in industrials and consumer discretionary, will be closely watched. The ruling has already influenced hedge fund activity, with clients selling the dollar around the decision, signaling market repositioning. - **AMD and Meta Announce Major AI Chip Deal** Advanced Micro Devices (**$AMD**) surged 8.88% to $214.05 after confirming a multi-year GPU supply agreement with Meta Platforms (**$META**). The deal, reportedly worth up to $100 billion, validates AMD’s position in the AI infrastructure market and boosts investor confidence ahead of earnings. This partnership is a significant endorsement of AMD’s AI capabilities and positions it as a key beneficiary of the AI buildout, potentially driving further gains in semiconductor stocks. - **Home Depot Beats Q4 Estimates, Margins Surprise** Home Depot (**$HD**) shares rose 2.23% to $385.40 following a strong Q4 earnings beat driven by higher sales and gross margins. The company’s performance signals a potential turnaround in the home improvement sector, with professional customer demand holding firm. This sets positive expectations for rival Lowe’s (**data not available**) and supports the consumer discretionary sector, which is up 1.65% in ETF terms. - **Anthropic AI Partnerships Ease Software Selloff** Software stocks rebounded as Anthropic announced new enterprise partnerships, alleviating some AI disruption fears that had triggered a selloff. Stocks like CrowdStrike (**$CRWD**) and Zscaler (**data not available**) are benefiting from renewed investor interest. This relief rally could mark a pause or reversal in the recent tech weakness, though caution remains given ongoing AI uncertainty. - **Bitcoin and Crypto Markets Show Slight Pullback** Bitcoin is down marginally 0.18% to $64,514.55, while Ethereum is nearly flat. Crypto markets remain volatile amid regulatory scrutiny and sanctions related to crypto-funded tools exploiting U.S. software. The Treasury’s new sanctions may weigh on sentiment, but the overall crypto market is holding near recent levels, suggesting consolidation. ## Stocks to Watch Today - **$AMD** – Surged 8.88% on news of a $100 billion AI chip deal with Meta, positioning AMD as a major AI infrastructure player. - **$META** – Up 0.26%, benefiting from the AMD partnership and ongoing AI investments. - **$HD** – Gained 2.23% after beating Q4 sales and margin estimates, signaling strength in home improvement. - **$AAPL** – Rose 2.37% to $272.48; shareholders rejected a China manufacturing report proposal, reducing geopolitical risk concerns. - **$SNPS** – Up 4.87%, rebounding with software sector relief after Anthropic partnership announcements. - **$CRWD** – Slight gain of 0.29%, supported by easing AI disruption fears. - **$IIPR** – Jumped 10.30%, following strong Q4 earnings and positive outlook in real estate investment trusts. - **$INFU** – Surged 11.15% on better-than-expected Q4 results. - **$WLK** – Rose 12.39%, reflecting strong earnings and dividend prospects. - **$ACN** – Fell 0.74% despite announcing acquisition of Verum Partners to boost AI capabilities in Latin America. - **$EXPD** – Dropped 8.33% despite a Q4 beat; Stifel raised price target but stock reacts to tariff uncertainty. - **$CECO** – Plunged 22.10% after missing Q4 earnings and revenue estimates, raising concerns about growth. ## Sector Setup - **Technology:** Positioned for gains, with XLK up 1.40%. AI chip deals and easing software selloff support tech stocks. Watch for volatility around AI-related earnings. - **Consumer Discretionary:** Strong upside potential, up 1.65%, led by Home Depot’s beat and improving consumer demand signals. - **Financials:** Modest gains expected, XLF up 0.52%, as banks digest tariff impacts and mixed earnings results. - **Healthcare:** Slight weakness, XLV down 0.43%, pressured by AbbVie (**$ABBV**) and Eli Lilly (**$LLY**) amid drug pricing and trial data concerns. - **Energy:** Under pressure, XLE down 0.41%, with oil prices slipping 0.84% to $80.22 amid geopolitical and supply concerns. ## Economic Calendar & Fed No major economic releases or Fed events are scheduled for today. Market focus remains on earnings and tariff developments. ## Crypto & Commodities - **Bitcoin:** Slight decline of 0.18% to $64,514.55, consolidating near recent highs amid regulatory scrutiny. - **Gold:** Fell 1.57% to $473.74, pressured by stronger dollar and easing tariff fears. - **Oil:** Down 0.84% to $80.22, with geopolitical tensions and supply dynamics in focus. ## Trading Game Plan - Monitor tariff developments closely; the Supreme Court ruling signals a potential peak but new 10% tariffs introduce uncertainty. - Favor technology and consumer discretionary sectors, supported by AI chip deals and strong retail earnings. - Watch semiconductor stocks like **$AMD**, **$NVDA**, and software names benefiting from Anthropic partnerships. - Be cautious on energy and healthcare sectors amid commodity price softness and drug pricing pressures. - Keep an eye on crypto markets for regulatory developments and potential volatility spikes. - Manage risk around AI disruption fears and geopolitical trade tensions that could trigger market swings.