Fed Minutes in Focus; Palo Alto Networks Slides – Key Market Drivers: Dow Jones, S&P, Nasdaq, Wall Street Futures
February 18, 2026 4:40 AM
IH Market News
U.S. equity futures edged higher early Wednesday as investors prepared for the release of the Federal Reserve’s January meeting minutes and digested fresh corporate developments. Shares of cybersecurity firm Palo Alto Networks (NASDAQ:PANW) declined after issuing weaker-than-expected profit guidance. Meanwhile, Warren Buffett’s final quarter leading Berkshire Hathaway (NYSE:BRK.B) featured notable portfolio shifts, including trims to major tech and banking holdings.
Futures point upward
As of 02:43 ET, Dow futures were up 55 points, or 0.1%. S&P 500 futures gained 12 points, or 0.2%, while Nasdaq 100 futures dipped 35 points, or 0.1%.
Wall Street’s main indices finished higher in the previous session, supported by a modest rebound in technology stocks that had recently come under pressure. Advances in Nvidia (NASDAQ:NVDA) and Apple (NASDAQ:AAPL) helped offset weakness in Microsoft (NASDAQ:MSFT) and Oracle (NYSE:ORCL), lifting the S&P 500 information technology sector by 0.5%.
Despite the recovery, uncertainty persists around the tech sector’s outlook following the launch of new artificial intelligence tools. Some investors worry that emerging AI models could disrupt industries ranging from software and financial services to real estate and logistics.
Questions also remain about when heavy investments in AI-focused data centers will begin delivering meaningful returns. Large-cap tech firms have committed significant capital to infrastructure supporting AI chips, raising concerns about profitability timelines.
“Tech investors remain traumatized by the volatility of the last several weeks and the shifting AI conversation, although there is growing anticipation for Nvidia’s earnings report next week (which most people expect will be strong) while software is still firmly in the penalty box despite the extremely oversold price action,” analysts at Vital Knowledge wrote.
Fed minutes awaited
The minutes from the Federal Reserve’s January policy meeting, due later Wednesday, are expected to offer further clarity on the central bank’s rate trajectory.
At that meeting, two policymakers—Stephen Miran and Christopher Waller—dissented from the decision to keep rates unchanged, marking a pause in the rate-cut cycle that began in mid-2024.
Officials cited signs of a steady labor market and inflation that, while still above target, appears to be stabilizing as justification for maintaining rates within the 3.5% to 3.75% range.
Markets broadly anticipate the Fed will hold rates steady at least through June, adopting a cautious approach as it monitors employment and price trends.
Chair Jerome Powell is nearing the conclusion of his tenure at the central bank. Former Fed Governor Kevin Warsh has been nominated by President Donald Trump as Powell’s successor, prompting speculation about potential shifts in monetary policy direction under new leadership.
Oil edges higher on US–Iran diplomacy
Oil prices rose modestly after falling nearly 2% in the prior session, as progress in U.S.–Iran nuclear talks reduced fears of supply disruptions.
By 02:58 ET, Brent crude futures for April delivery were up 0.3% at $67.61 per barrel, while West Texas Intermediate (WTI) futures gained 0.2% to $62.40 per barrel.
Brent had dropped close to 2% on Tuesday, with WTI down 1%.
Reports indicated that Washington and Tehran reached agreement on key “guiding principles” during discussions in Switzerland, boosting hopes for a deal that could eventually allow additional Iranian crude to enter global markets.
However, Iran’s foreign minister emphasized that the understanding does not mean a comprehensive agreement is imminent.
Energy markets are closely monitoring the talks, given Iran’s role as a significant oil producer and its strategic location along the Strait of Hormuz, a critical transit route for roughly 20% of global oil consumption.
Palo Alto Networks tumbles on outlook
Shares of Palo Alto Networks (NASDAQ:PANW) fell in after-hours trading despite the company exceeding quarterly earnings and revenue expectations, as its updated profit outlook disappointed investors.
The Santa Clara-based cybersecurity company reported fiscal second-quarter earnings of $1.03 per share on revenue of $2.59 billion, surpassing analyst projections of $0.94 per share on $2.58 billion in revenue.
However, the company lowered its fiscal 2026 earnings per share forecast to a range of $3.65 to $3.70, down from a prior estimate of $3.80 to $3.90. The consensus expectation had been $3.87.
Full-year revenue is now projected between $11.28 billion and $11.31 billion, above the previous outlook of $10.50 billion to $10.54 billion and exceeding market expectations.
Berkshire adjusts portfolio in Buffett’s final quarter
Berkshire Hathaway (NYSE:BRK.B) reduced its stakes in Apple and Bank of America (NYSE:BAC) while initiating a new position in New York Times (NYSE:NYT) during Warren Buffett’s last quarter as CEO.
A regulatory filing revealed that the conglomerate sold approximately 10.3 million Apple shares in the quarter ended December 31, marking the third straight quarter of reductions in its holdings of the iPhone maker. Berkshire also trimmed its position in Bank of America by 50.8 million shares.
At the same time, the company acquired about 5.1 million shares of New York Times, backing a firm that has expanded beyond traditional journalism into digital subscriptions, including games and recipe content.
Buffett, 95, stepped down as chief executive at the end of 2025, handing leadership to his designated successor, Greg Abel. Abel is set to present his first shareholder letter later this month alongside Berkshire’s annual earnings report.
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Original: Fed Minutes in Focus; Palo Alto Networks Slides – Key Market Drivers: Dow Jones, S&P, Nasdaq, Wall Street Futures
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