Stock Market Summary – February 23, 2026

Amazon announced plans to invest $12 billion in data center campuses in Louisiana to support its AI and cloud computing infrastructure. However, Wall Street has reacted skeptically to Amazon’s capex plans, triggering a nine-day slump causing a $450 billion decrease in its market value.

Shares of IBM dropped nearly 13% after AI company Anthropic announced that its Claude Code tool could be used to modernize COBOL legacy systems, a significant part of IBM’s business. The potential for cost-efficient AI to disrupt a system reportedly used in 95% of U.S. ATM transactions has rattled investors.

Domino’s Pizza saw shares rise following a strong quarter with higher transactions and improved traction among lower-income customers. Domino’s CEO Russell Weiner announced ambitious plans to double the company’s market share.

Cybersecurity stocks took a hit due to fears of AI disruption, with CrowdStrike falling 8% on Friday and a further 9% on Monday and Palo Alto Networks also witnessing a decline. However, experts argue that the fear is overblown, with both CrowdStrike and Palo Alto deemed “more AI resilient” by JPMorgan analysts.

The average rate on a 30-year mortgage fell to 5.99%, matching its lowest levels since 2022, following a stock market sell-off that drove investors towards the relative safety of the bond market. A more sustainable stay in the high 5% range is anticipated unless the broader bond market experiences a significant sell-off.

In other news, a federal judge blocked the release of a report by former special counsel Jack Smith who was investigating Trump for retaining classified documents and obstructing efforts to retrieve them. The decision was based on a previous ruling asserting Smith’s appointment as special counsel violated the Constitution.

Following an upgrade from Wells Fargo, Alphabet shares are expected to rise to $400, a nearly 27% increase from its closing price last week. Home Depot is also anticipated to experience a boost following a predicted rate cut cycle. However, the ongoing uncertainty over tariffs and tech valuation continues to foster market instability.