MPC Morning Call 25th February 2026 – Software and Tech rout finally take a breather
Wall Street has snapped back after an AI-fuelled rout, with technology and software stocks leading a broad-based rebound. Consumer confidence has improved, helping lift risk appetite just as investors brace for a pivotal earnings update from Nvidia,
WATCH ON YOUTUBE Due to increasing inaccurate AI generated financial markets news, MPC is endeavouring to verify all sources in the morning call. MPC Morning Call 25th February 2026 – Software and Tech rout finally take a breather Wall Street has snapped back after an AI-fuelled rout, with technology and software stocks leading a broad-based rebound. Consumer confidence has improved, helping lift risk appetite just as investors brace for a pivotal earnings update from Nvidia, widely seen as a key barometer for AI demand. The S&P 500 and Nasdaq 100 both moved higher, short-dated bonds lagged, and gold eased, as major strategists argued that while valuations are somewhat elevated and AI disruption is real at the company level, the broader macro backdrop and business cycle should limit the risk of a deep equity drawdown. Corporate news and policy developments added extra colour to the session. Anthropic expanded the reach of its Claude chatbot into new sectors while simultaneously facing pressure from the Pentagon, which has threatened to terminate military contracts if government conditions on AI use are not met. In the real economy, Home Depot delivered an unexpected rise in comparable sales driven by higher average ticket sizes and a growing focus on professional contractors, even as analysts cautioned that housing-linked retailers still face stiff headwinds from weak confidence, labour market pressures and general uncertainty; meanwhile, Warner Bros. Discovery was reported to be weighing a fresh takeover proposal, and Novo Nordisk flagged plans to cut US list prices for its blockbuster obesity drugs. Politics and trade remain key swing factors for markets. President Donald Trump’s State of the Union address is set to focus on affordability, tariffs, immigration, Iran, Ukraine and his budget plans, with the speech coming against a backdrop of renewed trade uncertainty after new global tariffs took effect at 10% following a Supreme Court ruling that struck down earlier “reciprocal” levies. The murky outlook has already prompted FedEx to sue for a full refund of emergency tariffs paid over the past year, joining a growing line-up of corporate challengers as questions linger over the fate of more than 160 billion dollars in tariff revenue. In commodities, oil prices slipped but remained near seven-month highs ahead of fresh US–Iran nuclear talks, with both Brent and WTI trading around levels last seen in early August 2025. Commodities, Energy & FX ASX Overnight: SPI 9044 (+0.30%) Corporate news WiseTech Global will cut up to 2000 of its 7000 employees over the next two years as it accelerates its shift toward AI-driven products, with the biggest reductions in product development and customer service teams, including recently acquired e2open. CEO Zubin Appoo said AI has transformed software development, enabling faster innovation and greater efficiency. The move came alongside interim results showing a 76% jump in revenue to US$672 million, boosted by e2open’s contribution, though net profit fell 36% to US$68.1 million, with underlying profit up 2% to US$114.5 million.
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