World shares, US futures advance after AI fears drag Wall Street lower
[February 20, 2026] By
ELAINE KURTENBACH
BANGKOK (AP) — European shares were higher Friday after a mixed day of
trading in Asia, as worries over risks linked to massive investments in
artificial intelligence and a potential U.S.-Iran conflict weighed on
major benchmarks.
Germany's DAX rose 0.2% to 25,103.32 and the CAC 40 in Paris was up 0.7%
at 8,460.35. Britain's FTSE 100 picked up 0.4% to 10,672.75.
The future for the S&P 500 was up 0.3% while that for the Dow Jones
Industrial Average gained 0.2%.
Tokyo’s Nikkei 225 fell 1.1% to 56,825.70 as shares in major banks and
other financial institutions skidded on worries over the potential
impact of weakening private credit companies that have lent to companies
exposed to the risk that AI will steal away their businesses.
That includes market heavyweights like Mitsubishi UFJ Financial Group,
which has a partnership with Blue Owl Capital, one such private-credit
company. MUFJ's shares dropped 2.2% in Tokyo after Blue Owl lost 5.9% on
Thursday.
Toyota Motor Corp. fell 3.7% and Sony shed 3.2%.
In Hong Kong, the Hang Seng lost 1.1% to 26,413.35 as the market
reopened following Lunar New Year holidays. Markets in mainland China
and Taiwan remain closed until next week.
South Korea's Kospi jumped 2.3% to a new record of 5,808.53, however,
led by major defense contractors like Hanwha Aerospace, whose shares
soared 6.4%. The company is one of many benefiting from a ramp up in
military spending in many countries.
Elsewhere in the region, Australia's S&P/ASX 200 edged 0.1% lower to
9,081.40.
India's Sensex added 0.7%, and the SET in Bangkok lost 1.1%.
On Thursday, the S&P 500 slipped 0.3%. The Dow Jones Industrial Average
dropped 0.5% and the Nasdaq composite lost 0.3% to 22,682.73.
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.
It is one of many companies under pressure because of worries that
competitors powered by artificial-intelligence technology could upend
their industries and take away customers. Booking’s stock has lost
roughly a quarter of its value so far this year already.
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Currency traders work near a screen showing the Korea Composite
Stock Price Index (KOSPI), top center, and the foreign exchange rate
between U.S. dollar and South Korean won, top center left, at the
foreign exchange dealing room of the Hana Bank headquarters in
Seoul, South Korea, Friday, Feb. 20, 2026. (AP Photo/Ahn Young-joon)
 Walmart, meanwhile, pushed and
pulled on the market after jumping to an early gain of 2.7% and then
flipping to a loss of 1.4%. 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.
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%, while Brent added 1.9%. Crude prices
have climbed to their highest level since early August as both the
United States and Iran have signaled they are prepared for war if
talks on Tehran’s nuclear program fizzle out.
Early Friday, U.S. benchmark crude shed early gains, falling 20
cents to $66.20 per barrel. Brent, the international standard, shed
17 cents to $71.49 per barrel.
Higher oil prices could lead the Federal Reserve to hold off on 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.
On the other hand, a report saying the number of U.S. workers
applying for unemployment benefits eased could signal the pace of
layoffs is slowing.
Other U.S. economic reports said that growth for manufacturing in
the mid-Atlantic region is accelerating, but potential The U.S.
trade deficit also widened in December by more than economists
expected.
In other dealings early Friday, the dollar rose to 155.59 Japanese
yen from 154.99 yen. The euro slipped to $1.1763 from $1.1775.
The price of gold rose 1% and the price of silver was up 2.7%.
Bitcoin's price rose 1.9% to $68,135.
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