US stocks slip as AI fears keep rumbling and oil prices climb
[February 20, 2026] By
STAN CHOE
NEW YORK (AP) — U.S. stocks fell Thursday, while oil prices rose with
worries about a potential conflict between the United States and Iran.
The S&P 500 slipped 0.3% for its first loss in four days. The Dow Jones
Industrial Average dropped 267 points, or 0.5%, and the Nasdaq composite
slipped 0.3%.
Booking Holdings dropped 6.1% for one of the market’s sharper losses,
even though the company behind the Booking.com, Priceline and OpenTable
brands reported a profit for the latest quarter that edged past
analysts’ expectations.
Its stock has been under pressure because of worries that competitors
powered by artificial-intelligence technology could upend its industry
and take away customers. Booking’s stock has lost roughly a quarter of
its value so far this year already.
Such worries have been rolling through Wall Street, hitting industries
as far flung as software and legal services and trucking logistics.
Investors have been punishing stocks of companies seen as under threat
by AI so suddenly and aggressively that analysts have likened it to a
“shoot first-ask questions later” mentality.
The doubts are hurting not just companies seen as potential victims of
AI but also the private-credit companies that have lent them money. Blue
Owl Capital fell 5.9% to bring its loss for the year so far to 22.5%,
for example. Apollo Global Management dropped 5.2%, and Ares Management
sank 3.1%.
Carvana sank 7.9% even though the retailer reported a stronger profit
for the latest quarter than analysts expected. Investors may have been
paying more attention to how much profit the auto retailer made per
vehicle sold, which was lower than expected.
Walmart, meanwhile, pushed and pulled on the market after jumping to an
early gain of 2.7% and then flipping to a loss. The retail giant
delivered stronger results for the latest quarter than analysts
expected, but it gave a profit forecast for the upcoming year that fell
short of estimates. It finished the day with a loss of 1.4%.
Helping to limit the market’s losses was Deere, which jumped 11.6% after
the machinery maker reported a higher profit than analysts expected. CEO
John May said it’s seeing a continued recovery in demand from
construction and smaller agricultural customers, though its global,
large agricultural customers are still feeling pressure.
Some of the bigger gains in the S&P 500 came from stocks of oil
companies, which climbed with the price of crude. A barrel of benchmark
U.S. crude rose 1.9% to $66.43, while Brent added 1.9% to $71.66 per
barrel.
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Traders Joseph Lawler, left, and Niall Pawa, center, and Drew Cohen
work on the floor of the New York Stock Exchange, Thursday, Feb. 19,
2026. (AP Photo/Richard Drew)
 Oil prices rose with worries about a
possible military confrontation between the United States and Iran.
President Donald Trump has been raising the pressure on Iran, which
is home to some of the world’s largest oil reserves, because of its
disputed nuclear program. If a conflict were to break out, it could
constrict the global flow of oil.
Occidental Petroleum jumped 9.4% after it also reported a stronger
profit for the latest quarter than analysts expected.
All told, the S&P 500 fell 19.42 points to 6,861.89. The Dow Jones
Industrial Average dropped 267.50 to 49,395.16, and the Nasdaq
composite lost 70.91 to 22,682.73.
In the bond market, Treasury yields held relatively steady after a
report said the number of U.S. workers applying for unemployment
benefits eased last week. That could be a signal that the pace of
layoffs is slowing.
A solid job market, in turn, could keep the Federal Reserve on hold
for longer before it resumes its cuts to interest rates. Fed
officials said at their last meeting that they want to see inflation
fall further before they would support cutting rates further this
year.
If oil prices keep rising, that would push upward on inflation.
The yield on the 10-year Treasury slipped to 4.07% from 4.09% late
Wednesday.
Other U.S. economic reports said that growth for manufacturing in
the mid-Atlantic region is accelerating, but potential homebuyers
across the country didn’t sign as many contracts in January to
purchase. The U.S. trade deficit also widened in December by more
than economists expected.
In stock markets abroad, indexes fell in Europe following better
performances in Asia.
South Korea’s Kospi jumped 3.1% as trading resumed following a Lunar
New Year holiday. Markets in Hong Kong and Shanghai remained closed.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
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