On the February 26, 2026 episode of “The Close,” the stock market experienced a notable downturn, primarily driven by a selloff in semiconductor and AI-related stocks following disappointing earnings from Nvidia. Despite Nvidia’s significant revenue growth, its results failed to meet the market’s high expectations, leading to a 5% drop in its share price and dragging down other tech heavyweights like Broadcom, Apple, and Google. The S&P 500 closed down about 0.5%, with the Nasdaq falling even more sharply, while the Dow managed to stay flat. The market’s narrow trading range and the underperformance of tech signaled growing investor caution about the sustainability of the AI-driven rally.
Amid the tech sector’s struggles, there was a clear rotation into emerging markets and cyclical sectors such as materials and industrials. Experts on the show discussed how international markets, particularly those outside China, Japan, and Europe, are showing accelerating profit growth and may be entering a multi-year period of outperformance relative to the U.S. The weakening dollar, while helpful, was not seen as a necessary condition for this trend. The panel also noted that while AI infrastructure spending remains massive, the immediate productivity and profit gains from AI are still uncertain, leading investors to diversify away from U.S. tech and into other global opportunities.
The episode also covered significant corporate news, including a Supreme Court ruling overturning Trump-era tariffs, which could result in substantial refunds for U.S. importers. Ryan Petersen, CEO of Flexport, explained how his company is helping businesses navigate the refund process and discussed ongoing supply chain challenges, such as the continued avoidance of the Suez Canal and the surge in data center construction, which is boosting demand for air freight and logistics services.
In the earnings spotlight, Dell Technologies surprised investors with strong results and bullish guidance, driven by robust AI server demand, despite industry-wide concerns about rising memory chip costs. Other notable earnings included Intuit, Autodesk, and NetApp, with mixed reactions in after-hours trading. Block (formerly Square) announced a dramatic 40% workforce reduction, attributing the move to efficiency gains from AI tools, which sent its stock soaring over 20% in after-hours trading.
The show also delved into the ongoing media merger saga, with Warner Bros. Discovery’s board deeming Paramount-Skydance’s revised offer “superior” to Netflix’s, giving Netflix four days to respond. Paramount, Skydance, and Warner Bros. shares all traded higher on the news. In the retail sector, Tanger CEO Stephen Yalof discussed the resurgence of outlet shopping among younger consumers and the importance of experiential retail. The episode concluded with a discussion on CEO confidence, which has reached its highest level since early 2025, driven by optimism about capital investment and AI, even as uncertainty around tariffs, geopolitics, and the true impact of AI on productivity remains.
