Daily Brief - February 26, 2026 (EOD)

 ## Market Recap The major U.S. equity indices closed lower on Thursday, with the S&P 500 falling 0.97% to $686.41, the Nasdaq 100 dropping 1.56% to $607.09, and the Dow Jones Industrial Average declining 0.55% to $492.08. The Russell 2000 also slipped 0.39% to $263.54. The session was characterized by a broad-based pullback, particularly in technology stocks, which led the market lower amid fading optimism following strong earnings from Nvidia earlier in the week. Market sentiment turned cautious as investors digested mixed earnings reports and tempered guidance from several key technology companies. Volume was robust, especially in the Nasdaq 100 with 96.2 million shares traded, reflecting active repositioning in growth and AI-related stocks. Breadth was negative, with a majority of sectors and individual stocks closing in the red, underscoring a risk-off tone as traders reassessed valuations and growth prospects in the wake of recent earnings. ## Top Stories That Moved Markets - **Nvidia's Earnings and Guidance Disappoint:** Despite a record Q4 earnings beat, Nvidia’s shares fell sharply, dragging down the broader semiconductor sector. The company’s cautious outlook on AI chip demand and concerns about a potential slowdown in AI spending weighed on **$NVDA** (-5.32%). This contributed to the Nasdaq’s 1.56% decline and a tech sector selloff. - **Quantum Computing Stock IonQ Surges:** IonQ reported better-than-expected revenue and raised 2026 guidance, sending shares up 21.70% to $40.88. This quantum computing optimism stood in contrast to broader tech weakness and highlighted selective investor interest in emerging AI-related technologies. - **J.M. Smucker and Krispy Kreme Rally on Earnings Beat:** Both companies posted strong Q4 results and positive outlooks, with **$SJM** (+8.82%) and **$DNUT** (+27.09%) leading gains in the consumer discretionary space. Their earnings helped support pockets of strength in the market despite the overall downtrend. - **PayPal Shares Decline on Takeover Rumors:** Shares of **$PYPL** fell 2.77% amid renewed takeover speculation, although reports indicated no active talks. The uncertainty added pressure on the stock and contributed to weakness in fintech-related names. - **Core Inflation in Tokyo Slows:** Japan’s core inflation fell below the Bank of Japan’s 2% target, signaling easing price pressures. This macro development added to the cautious global sentiment and influenced currency and equity markets. ## Biggest Winners - **$RXT** +82.21% – Rocket Lab surged on news of a major contract win and expansion in space data center technology, fueling investor enthusiasm for its growth prospects. - **$BFLY** +50.65% – Butterfly Network rallied sharply following a better-than-expected Q4 earnings report and optimistic outlook for its medical imaging technology. - **$SAFX** +35.89% – Safex saw a significant jump on increased volume and speculative interest, likely driven by recent filings and market chatter. - **$RRGB** +33.18% – Red Robin Gourmet Burgers gained on strong Q4 earnings and positive commentary on traffic recovery and margin improvement. - **$GCT** +32.31% – GigaCloud’s stock soared after reporting a 110% revenue surge despite profitability challenges, highlighting investor focus on top-line growth in AI infrastructure. - **$HPP** +20.91% – Hudson Pacific Properties rose on Q4 earnings beat and solid operational metrics, supporting confidence in real estate fundamentals. - **$ANIK** +16.91% – Anika Therapeutics rallied after delivering strong Q4 results and raising 2026 guidance. - **$PRMB** +15.38% – Premier Medical Group shares jumped on a robust earnings beat and positive outlook for healthcare services. ## Biggest Losers - **$ARRY** -34.27% – Array Technologies plunged following a disappointing Q4 report and lowered guidance, raising concerns about demand in the solar energy equipment sector. - **$ERII** -33.37% – Energy Recovery’s shares collapsed after reporting a wide loss and rising interest expenses, despite strong revenue growth. - **$THRY** -45.15% – Thryv suffered a steep decline on a poor earnings report and significant guidance cut amid challenges in its software business. - **$AI** -18.53% – C3.ai shares dropped sharply after announcing a 26% workforce reduction and wider-than-expected losses, fueling fears of a prolonged software selloff. - **$PAYO** -18.74% – Payoneer tumbled on a weak Q4 earnings report and disappointing guidance, compounding fintech sector pressure. - **$GDRX** -17.96% – GoodRx declined on a Q4 earnings miss and cautious outlook for 2026. - **$AMCM** -16.72% – ACM Research plunged after missing earnings estimates and issuing cautious guidance. - **$BUR** -11.06% – Burford Capital dropped amid earnings disappointment and concerns over credit quality. ## Sector Scorecard - **Leaders:** Financials (+0.69%) and Energy (+0.26%) outperformed modestly. Financials benefited from strong bank earnings and optimism around credit quality, while energy steadied despite geopolitical uncertainties and a slight pullback in oil prices. - **Laggards:** Technology (-2.18%) led the decline, weighed down by semiconductor weakness and disappointing software results. Healthcare (-0.54%) and Consumer Discretionary (-0.03%) also lagged, reflecting mixed earnings and cautious investor sentiment. ## Crypto & Commodities - Bitcoin closed at $67,506.95, down 0.71%, retreating from recent highs amid broader risk-off sentiment in tech and growth assets. - Ethereum fell 1.39% to $2,027.81, mirroring Bitcoin’s pullback and investor caution in crypto markets. - Gold gained 0.64% to $476.45, benefiting from safe-haven demand amid equity market volatility and geopolitical uncertainties. - Oil edged down 0.36% to $79.44, as traders weighed ongoing US-Iran nuclear discussions and a build in crude inventories. ## Tomorrow Setup - Key economic data includes US jobless claims and pending home sales, which could influence market direction amid ongoing inflation and growth concerns. - Earnings to watch include Salesforce (**$CRM**), which recently reported mixed results but remains a key AI software player, and several financials that could provide further insight into credit conditions. - Momentum stocks to monitor are quantum computing leader **$IONQ**, which continues to attract investor interest, and consumer discretionary names like **$SJM** and **$DNUT** that showed strength today. - Risk factors include potential further tech sector volatility, geopolitical developments related to US-Iran talks, and the market’s reaction to upcoming inflation data and Fed commentary. Investors should remain cautious as the market digests mixed earnings and navigates a complex macro environment with shifting narratives around AI spending, inflation, and geopolitical risks.