US Stocks Close Higher on Strong Economic Data as Fed Minutes Lift Bond Yields

Index Performance and Market Tone
On February 18, 2026, US equity markets ended the session higher. The S&P 500 rose 0.56%, the Dow Jones Industrial Average gained 0.26%, and the Nasdaq 100 advanced 0.80%. March E-mini S&P and March E-mini Nasdaq futures increased 0.52% and 0.80%, respectively. The move was supported by stronger-than-expected US macroeconomic data pointing to resilient economic activity. At the same time, near-term AI-related concerns eased, improving sentiment in chipmakers and software stocks.

US Economic Data and Federal Reserve Signals
Key releases covering capital goods, housing, and industrial output came in above expectations. December nondefense capital goods new orders excluding aircraft, a widely used proxy for business investment, rose 0.6% m/m versus expectations near 0.3%. December housing starts increased 6.2% m/m to 1.404 million, a five-month high, while building permits climbed 4.2% m/m to 1.448 million, a nine-month high. January manufacturing production rose 0.6% m/m, the strongest increase in 11 months.

Part of the equity gains faded after the release of minutes from the January 27–28 FOMC meeting. The minutes noted that “several” policymakers saw the possibility that rate increases could be appropriate if inflation remains above the Fed’s goal, a message viewed by markets as more hawkish.

Rates and Fixed Income
Treasuries came under pressure amid stronger equities and upbeat economic data. The 10-year Treasury yield rose 2.3 bp to 4.081%, and March 10-year T-notes fell 5.5 ticks. Treasury prices were also weighed down by softer demand at the $16 billion 20-year auction, where the bid-to-cover ratio was 2.46 versus the 10-auction average of 2.65. MBA data showed mortgage applications rose 2.8% in the week ended February 13, with refinancing up 7.1% and purchase applications down 2.7%. The average 30-year fixed mortgage rate fell to 6.17% from 6.21%. In Europe, sovereign yields were mixed: the 10-year German bund yield edged up 0.1 bp to 2.739%, while the 10-year UK gilt yield slipped 0.2 bp to 4.374%. In the UK, January CPI was 3.0% y/y and core CPI was 3.1% y/y.

Corporate News and Notable Stock Moves
Strength in chipmakers and AI-infrastructure names supported broader market gains. Micron and Western Digital rose more than 4%, ASML gained more than 3%, Applied Materials and Palantir climbed more than 2%, while Nvidia, Lam Research, and Seagate added more than 1%. Precious-metals miners rallied as gold and silver prices rebounded: Hecla and Coeur advanced more than 4%, Barrick gained more than 3%, and Newmont, AngloGold Ashanti, and Freeport-McMoRan rose more than 2%. Among earnings-driven movers, Global Payments jumped more than 16% after issuing an adjusted EPS outlook above consensus. Global-e Online, Caesars Entertainment, and Garmin also posted double-digit gains on results and guidance that exceeded expectations. On the downside, Axcelis Technologies fell more than 16% after a weaker forecast, while Palo Alto Networks dropped more than 6% after projecting full-year adjusted EPS below consensus.