Wall St ends lower on mixed economic data, US-Iran tensions boost crude
A trader, with ash cross mark on his forehead for Ash Wednesday, works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 18, 2026. REUTERS/Brendan McDermid
NEW YORK, Feb 19 : U.S. stocks moved modestly lower on Thursday following mixed economic data and Walmart's disappointing forecast for the coming year, while signs of a sturdy labor market helped the dollar extend its upward climb.
All three major U.S. stock indexes followed their European counterparts slightly lower, setting course to snap their three-session winning streaks, while mounting concerns over oil supply arising from a potential U.S.-Iran conflict helped bolster crude prices.
"Today (investors are) weighing some of the economic data and what Walmart’s earnings are saying in terms of the consumer," said Chuck Carlson, CEO at Horizon Investment Services in Hammond, Indiana.
"I think investors are trying to grapple with trying to make a decision whether this rotation trade has legs or if it’s starting to run its course," Carlson added, referring to the transition away from mega-cap tech-related momentum stocks.
A spate of economic data showed a dip in jobless claims and U.S. trade data, which recorded its widest goods deficit on record as imports rebounded despite President Donald Trump's tariffs.
Investor focus now turns to the Commerce Department's much-anticipated Personal Consumption Expenditures report (PCE), which is expected to show inflation gained some heat in December.
The Dow Jones Industrial Average fell 267.50 points, or 0.54 per cent, to 49,395.16, the S&P 500 fell 19.40 points, or 0.28 per cent, to 6,861.91 and the Nasdaq Composite fell 70.90 points, or 0.31 per cent, to 22,682.73.
European shares pulled back from Wednesday's record closing high as investors parsed a mixed bag of corporate earnings, particularly Airbus and iron ore producer Rio Tinto.
MSCI's gauge of stocks across the globe fell 2.94 points, or 0.28 per cent, to 1,046.75.
The pan-European STOXX 600 index fell 0.53 per cent, while Europe's broad FTSEurofirst 300 index fell 13.81 points, or 0.55 per cent.
Emerging market stocks fell 0.06 points to 1,560.82. MSCI's broadest index of Asia-Pacific shares outside Japan closed higher by 0.29 per cent to 799.88, while Japan's Nikkei rose 323.99 points, or 0.57 per cent, to 57,467.83.
U.S.-IRAN TENSIONS SEND OIL PRICES HIGHER
Crude prices continued to rise, reaching a six-month high due to supply concerns arising from the growing possibility of a potential military conflict between the United States and Iran.
"It’s the elephant in the room, what's going on in the Middle East," Carlson said. "It certainly has ramifications for commodities, specifically oil and also gold."
U.S. crude rose 1.90 per cent to settle at $66.43 per barrel, while Brent settled at $71.66 per barrel, up 1.86 per cent on the day.
The dollar edged higher as solid jobless claims data and minutes from the U.S. Federal Reserve appeared to show a divide among policymakers regarding the need to cut interest rates in the near term.
"The jobs market is okay, but there's still a bit of job insecurity that's out there," Carlson added. "It gives the Fed a pause, trying to evaluate not just the numbers, but how job insecurity is affecting the rest of the economy."
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.19 per cent to 97.88, with the euro down 0.12 per cent at $1.1768.
Against the Japanese yen, the dollar strengthened 0.17 per cent to 155.09.
In cryptocurrencies, bitcoin gained 1.14 per cent to $67,077.74. Ethereum rose 0.39 per cent to $1,949.27.
U.S. Treasury yields were mixed as traders evaluated probable Fed policy, while the Treasury Department sold $9 billion in inflation-linked 30-year debt.
The yield on benchmark U.S. 10-year notes fell 0.6 basis points to 4.075 per cent, from 4.081 per cent late on Wednesday.
The 30-year bond yield fell 0.2 basis points to 4.705 per cent from 4.707 per cent late on Wednesday.
But the 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 1.2 basis points to 3.472 per cent, from 3.46 per cent late on Wednesday.
Gold prices advanced as investors weighed mounting U.S.-Iran tensions against data hinting at labor market stability.
Spot gold rose 0.46 per cent to $5,002.19 an ounce. U.S. gold futures fell 0.04 per cent to $4,984.50 an ounce.
