Daily Brief - February 28, 2026 (EOD)

 ## Market Recap The major U.S. indices closed lower on a day marked by geopolitical tensions and sector rotation. The S&P 500 declined 0.48% to finish at $685.99, while the Nasdaq 100 dropped 0.63% to $605.38. The Dow Jones Industrial Average saw a steeper fall of 1.05%, closing at $489.66, and the Russell 2000 small-cap index was the weakest, down 1.72% to $261.41. The broad-based selling reflected a risk-off tone as investors digested escalating conflict in the Middle East and its potential impact on energy markets and economic stability. Market sentiment was cautious and defensive, with investors favoring traditional safe havens and sectors perceived as less sensitive to geopolitical risk. Trading volumes were elevated in several key names, particularly in tech and financials, underscoring the rotation away from growth and cyclical stocks. Breadth was negative, with more decliners than advancers, and the tech-heavy Nasdaq saw notable weakness despite pockets of strength in select AI-related names. ## Top Stories That Moved Markets - **U.S.-Israel Strikes on Iran**: The coordinated military action against Iran triggered a sharp risk-off move across equities, particularly in sectors sensitive to geopolitical risk. Energy prices surged on supply concerns, while defense stocks gained. The S&P 500 and Nasdaq both retreated amid uncertainty over the conflict's duration and broader economic implications. - **Apple's Stock Drop**: **$AAPL** fell 3.44% to $263.55 after news that the U.S. government plans to phase out use of Anthropic’s AI technology, which Apple had integrated into some products. The move raised concerns about regulatory headwinds for AI adoption and weighed on the broader tech sector. - **Dell Technologies Earnings Beat**: **$DELL** surged 21.53% to $147.60 following a strong earnings report that beat estimates and included a dividend hike. The rally highlighted investor appetite for tech hardware companies showing solid fundamentals amid broader tech weakness. - **Morgan Stanley and Bank Stocks Sell-Off**: Financials were hit hard, with **$MS** down 6.20% and **$BAC** falling 4.85%, pressured by concerns over credit conditions and the geopolitical backdrop. The sector’s 2.04% decline reflected investor caution about risk exposure in banks. - **Netflix Rally**: **$NFLX** jumped 12.98% to $95.57 on heavy volume after positive subscriber growth and upbeat guidance, bucking the tech sell-off and signaling renewed investor interest in select growth names. ## Biggest Winners - **$DELL** +21.53% – Earnings beat and dividend increase drove a strong rebound in shares. - **$FIGS** +23.50% – Continued momentum and analyst upgrades pushed shares sharply higher. - **$NFLX** +12.98% – Positive subscriber metrics and guidance fueled a significant rally. - **$SM** +9.75% – Double-digit dividend hike and earnings beat boosted energy stock. - **$LION** +9.21% – Anticipation of business updates and strong volume supported gains. - **$CRGY** +6.91% – Swing to profitability in energy sector attracted buying interest. - **$GLOB** +6.28% – Solid earnings and growth outlook lifted shares. - **$XPER** +5.54% – Investor day and positive outlook helped shares climb. ## Biggest Losers - **$DNA** -31.41% – Severe sell-off likely due to disappointing earnings or pipeline concerns. - **$WLDN** -24.62% – Heavy decline possibly linked to earnings miss or sector weakness. - **$SEZL** -13.81% – Sharp drop following earnings or guidance disappointment. - **$ZS** -12.61% – Significant sell-off amid broader tech weakness and valuation concerns. - **$ODD** -15.73% – Large decline likely tied to earnings or operational issues. - **$LPTH** -7.45% – Investor day or earnings disappointment pressured shares. - **$SOFI** -7.43% – Financial sector weakness and credit concerns weighed on stock. - **$U** -7.35% – Sell-off amid tech and fintech sector rotation. - **$JXN** -6.30% – Earnings or sector pressure contributed to decline. - **$KKR** -6.17% – Private equity concerns and market volatility impacted shares. ## Sector Scorecard - **Leaders:** Healthcare (+1.77%), Energy (+1.58%), Consumer Staples (+1.29%) Defensive sectors outperformed as investors sought safety amid geopolitical uncertainty. Energy benefited from rising oil prices due to Middle East tensions, while healthcare and staples provided a safe haven. - **Laggards:** Financials (-2.04%), Technology (-1.60%), Russell 2000 (-1.72%) Financials were pressured by credit risk concerns and geopolitical risk. Technology stocks broadly declined, dragged down by regulatory worries and profit-taking after recent rallies. Small caps underperformed amid risk aversion. ## After-Hours Movers Data not available. ## Crypto & Commodities - Bitcoin closed at $67,005.79, up 1.73%, recovering from recent volatility as geopolitical tensions boosted demand for digital gold. - Ethereum rose 1.49% to $1,958.09, tracking Bitcoin’s positive momentum. - Gold (GLD) gained 1.31% to $483.75, reflecting safe-haven buying amid Middle East conflict. - Oil (USO) surged 2.73% to $81.95 on fears of supply disruption due to the Iran strikes. ## Tomorrow Setup Investors will monitor several key events and data points: - The ISM Manufacturing PMI for February is due at 3:00 PM ET, with a forecast of 51.8, slightly down from 52.6 previously. This will provide insight into manufacturing sector health amid ongoing geopolitical risks. - The S&P Global Manufacturing PMI final reading will also be released, complementing the ISM data. - Auto sales data for February will be reported, offering clues on consumer demand and economic resilience. - Earnings to watch include Sociedad Quimica Y Minera de Chile (SQM) reporting on February 28, with expectations for EPS of $0.64 but a recent surprise to the downside. - Market participants will continue to assess the geopolitical situation in the Middle East, which remains the dominant risk factor influencing energy prices, defense stocks, and overall market sentiment. - Momentum names to watch include tech hardware and AI-related stocks that showed resilience or gains today, such as **$DELL**, **$IQV**, and **$MKTX**. - Traders should remain cautious given the potential for volatility from geopolitical developments and upcoming economic data that could influence Fed policy expectations. In summary, the market closed lower amid heightened geopolitical tensions and sector rotation, with defensive sectors and commodities outperforming. Tomorrow’s economic releases and ongoing conflict developments will be key to setting the tone for the next session.