Here’s a look at how the leading indexes performed on February 20, 2026:
- The S&P 500 fell 0.28 percent
- The Nasdaq Composite ended down 0.31 percent
- The Dow Jones fell 0.54 percent
Following gains on Novel York exchanges Wednesday, driven by strong performance in the “Magnificent 7” stocks, analysts are cautioning against expecting a sustained tech sector lead. According to Edward Jones strategist Angelo Kourkafas, “The selling has been broad and indiscriminate, and in some cases, valuations already reflect a significant degree of disruption risk relative to current fundamentals,” he told CNBC.
Kourkafas added that while pessimism surrounding the tech sector may be overstated, the likelihood of the group regaining sustainable leadership is questionable given the current macroeconomic environment, which favors cyclical stocks.
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Former President Trump stated that the U.S. Must “reach a meaningful agreement” with Iran, and that the next ten days will determine whether a deal is reached. He called Iran a “hot spot” and appointed his son-in-law, Jared Kushner, as a “peace envoy.”
According to the head of the UN’s nuclear agency, Iran’s window for a diplomatic solution is shrinking. A potential war could threaten oil supplies from a region that accounts for about a third of the world’s oil production. Brent crude is up 2.41 percent to $71.83 a barrel.
“Crude oil prices are rising on expectations of possible military action in Iran,” said Louis Navellier of Navellier & Associates to Bloomberg.
Klarna Stock Plummets After Quarterly Results
Klarna released its fourth-quarter 2025 earnings on Thursday. Revenues rose 38 percent to $1.08 billion compared to the previous year, slightly exceeding analysts’ expectations, according to Bloomberg.
However, the stock plummeted 26.8 percent on Wall Street Thursday.
The decline is due to two factors: the company reported a loss of $16 million for the quarter, and its first-quarter 2026 forecast disappointed. Klarna expects a gross merchandise volume between $32 and $33 billion, while analysts had anticipated $33.4 billion, Bloomberg reported.
Photo: Richard Drew / AP / NTB
Provisions for potential loan losses increased sharply – up 59 percent from the previous year to $250 million. This is due to Klarna building a portfolio of longer-term credit loans, which require larger provisions.
“If we grow faster than expected, we also require to book more costs in advance and push profits forward,” said CEO Sebastian Siemiatkowski, according to Bloomberg.
The company had 118 million active users in the quarter, and the number of active cardholders grew to 4.2 million – up 1.9 million from the previous quarter.
U.S. Trade Deficit Increased in December
The U.S. Trade deficit increased by 32.6 percent from November to December, according to the Bureau of Economic Analysis.
The country had a trade deficit of $70.3 billion in December. Economists had forecast a trade deficit of $55.5 billion in December.
Exports fell by 1.7 percent to $287.3 billion in December. Imports increased by 3.6 percent to $357.6 billion.
Etsy to Sell Depop to eBay
Etsy shares ended up 9.33 percent after the company announced on Wednesday the sale of the used clothing platform Depop to eBay for approximately $1.2 billion, according to CNBC.
It’s been almost five years since Etsy acquired the UK-based app for $1.62 billion. Depop became popular among young consumers looking to buy and sell used clothing, shoes, and accessories. Around 90 percent of users are under 34.
“We are pleased that this agreement allows us to focus exclusively on the exciting opportunity we notice ahead: growing the Etsy marketplace in ways that matter most
