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GLOBAL MARKETS: Global stocks tread water as AI fears wane but US-Iran tensions simmer

European stocks eased from record highs as AI fears cooled, but U.S.-Iran tensions kept oil and gold prices elevated, while the Fed’s cautious stance underpinned the dollar. Asian markets gained, reflecting resilience in the global economy despite geopolitical uncertainty.

February 19, 2026

Harry Robertson and Rae Wee/Reuters

GLOBAL MARKETS: Global stocks tread water as AI fears wane but US-Iran tensions simmer

FILE PHOTO: FILE PHOTO: Nvidia and OpenAI logos are seen in this illustration taken, September 22, 2025.

Dado Ruvic/Illustration/Reuters

European stocks dipped from a record high on Thursday and U.S. futures flatlined as fears about AI disruption ebbed but tensions between the United States and Iran kept markets on edge and supported oil prices and gold.


Elsewhere, Asian equities rose overnight and the U.S. dollar found a footing after minutes from the Federal Reserve's latest meeting showed policymakers were in no rush to cut rates.


Europe's STOXX 600 index .STOXX slipped 0.24% as shares in planemaker Airbus AIR.PA and miner Rio Tinto RIO.AX fell after they reported earnings.


The index hit a record the previous day as a rally in defence and banking shares helped investors shake off worries about AI disrupting companies.


Futures for the U.S. S&P 500 ESc1 and tech-focused Nasdaq NQcv1 were little changed.


MSCI's index of Asian-Pacific stocks excluding Japan rose 0.38% .MIAPJ0000PUS, although trading was thin with markets in Hong Kong, China and Taiwan closed for the Lunar New Year holiday.


RESILIENT US ECONOMY


"Risk assets overall are OK because they read through those Fed minutes," said Chris Turner, global head of markets at lender ING.


"The Fed's talking about a resilient U.S. economy which is good for global growth," he said. "Equities have been doing quite well in Asia."


Wall Street rallied on Wednesday, driven by NvidiaNVDA.O saying it signed a multi-year deal to sell Meta Platforms META.O millions of artificial intelligence chips.


"We needed some good news. I think there has been a general feeling of malaise in the tech sector," said Tony Sycamore, a market analyst at IG, referring to a steep selloff earlier this month.


He said Nvidia, the world's most valuable company, which reports earnings next week, was potentially coming to the rescue of U.S. stocks.


GEOPOLITICS AND FED IN FOCUS


Oil prices extended gains after surging in the previous session, as investors priced in potential supply disruptions on concerns of a conflict between the U.S. and Iran.


U.S. outlets including the New York Times and CNN reported the build-up of American forces around Iran, although they stressed President Donald Trump had not decided on a course of action.


Brent crude oil futures LCOc1 were up 1.5% at $71.42 a barrel - the highest since late January - after jumping 4.4% in the previous session. U.S. crude CLc1 rose 1.6% to $66.26.


"The balance of risks now tilts to a U.S. strike after market close Friday," said Michael Every, senior global strategist at Rabobank, adding that any attack is likely to last weeks rather than "being over by the Monday open".


Gold XAU=, traditionally a safe-haven asset, rose 0.8% to $5,017 an ounce. GOL/


The dollar slipped slightly after rallying in the wake of better-than-expected U.S. economic data and as minutes of the Fed's January policy meeting revealed several policymakers were open to rate hikes if inflation remains elevated.


The dollar index =USD, which tracks the currency against six major peers, was last down 0.11% after climbing 0.59% on Wednesday.


"From our perspective, the (Fed) minutes support our view that rate cuts are off the table for the foreseeable future," said Charlie Ripley, senior investment strategist at Allianz Investment Management.


"Policymakers specifically noted disinflation could be on a slower path."

-Harry Robertson and Rae Wee/Reuters

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