GoAI Market Wrap - 20th Feb

Stock Market

On Thursday (February 19), U.S. equities opened lower and closed lower as all three major indices recorded collective losses. By the close, the Dow Jones Industrial Average fell 0.54% to 49,395.16; the S&P 500 declined 0.28% to 6,861.89; and the Nasdaq Composite slid 0.31% to 22,682.73.

 

Earlier in the day, asset management firm Blue Owl Capital announced the sale of $1.4 billion in loan assets held across three of its private debt funds, sparking investor anxiety over potential losses within the private lending sector. Following the news, the asset management sector faced collective pressure: Blue Owl Capital shares closed down 5.93%, Blackstone fell 5.37%, Apollo Global Management dropped 5.21%, Ares Management declined 3.08%, and Brookfield shed 2.68%.

 

In addition to asset managers, the software industry was another notably weak sector, with Cadence Design Systems down 2.76%, SAP down 2.41%, Intuit down 2.06%, and Salesforce down 1.33%. Artificial intelligence has remained the market's focal point recently, with investors concerned that the technology could disrupt the entire software industry. On the previous day, Mistral AI CEO Arthur Mensch claimed that over 50% of enterprise software could be replaced by this technology.

 

Meanwhile, the standoff between Iran and the U.S. persists. Shortly before press time, reports surfaced that President Trump is weighing a "limited-scale" initial military strike against Iran to compel its acceptance of U.S. nuclear deal requirements. Earlier in the session, Trump publicly stated that Iran has "10 to 15 days" to reach an agreement or face "serious consequences." Most energy stocks closed higher, with ConocoPhillips gaining 0.97% and Chevron up 0.49%.

 

Furthermore, a decline in Walmart shares exacerbated the market's subdued sentiment. The company's full-year earnings guidance fell short of market expectations, overshadowing a stronger-than-expected fourth-quarter performance; the stock closed down 1.38%.

Global Markets

Massive U.S. Air and Naval Forces Mobilize in the Middle East

 

U.S. media reported on February 18 that the military has significantly bolstered its presence across Jordan, Saudi Arabia, Bahrain, and the UAE, deploying fighter jets, early warning aircraft, and drones.

 

Naval assets, including destroyers and littoral combat ships, are stationed near the Red Sea, the Persian Gulf, and the Strait of Hormuz. The USS Abraham Lincoln carrier strike group, featuring F-35C fighters, is currently in the North Arabian Sea, with the USS Gerald R. Ford strike group expected to arrive as early as this weekend.

 

Trump Considers "Limited Strike" to Force Iranian Nuclear Accord

President Trump is reportedly weighing a targeted, limited-scale military strike against specific Iranian military or government facilities to compel acceptance of U.S. nuclear deal terms. This phased approach is intended as a pressure tactic rather than an immediate escalation to full-scale war.

 

However, the administration has signaled that if Iran continues uranium enrichment, the scope of strikes could expand to include targets that may destabilize the Iranian regime.

Corporate News

Amazon Overtakes Walmart as Global Revenue Leader

 

Amazon has officially surpassed Walmart to become the world’s top company by annual revenue, ending Walmart’s decade-long reign. Walmart reported $713.2 billion in sales for the 12 months ending January 31, while Amazon posted 2025 revenue of $717 billion. The shift underscores the massive growth of e-commerce and cloud services.

 

Strategic Acquisitions and Financing Deals

 

AMD is supporting a $300 million loan for Crusoe Energy Systems through Goldman Sachs, notably secured by chip products as collateral. In the health sector, Hims & Hers Health announced the acquisition of Australian digital health firm Eucalyptus for up to $1.15 billion.

 

Additionally, Yorkville America Equities is acquiring the Point Bridge America First ETF (MAGA) to expand its portfolio of "America First" investment products.

Forex & Commodities

International oil prices rose on February 19. By the close, WTI Crude Oil futures for the front-month contract rose $1.62 to settle at $66.67 per barrel, a gain of 2.49%.

 

COMEX Gold futures for the front-month contract rose $6.00, or 0.12%, to close at $5,015.50/oz. COMEX Silver futures rose $0.84, or 1.09%, to settle at $78.44/oz.

 

In the spot market, Spot Gold rose $18.80, or 0.38%, to $4,996.30/oz, while Spot Silver gained $1.32, or 1.71%, to $78.50/oz.

Goldman Sachs Bullish on "Hard Assets"

Goldman Sachs notes that in an uncertain global environment, investors are diversifying into hard assets, significantly boosting the commodities market.

 

The firm believes copper and precious metals have more upside than oil and gas due to three factors: their smaller market size relative to equities/bonds, highly constrained long-cycle supply responses, and lower storage costs compared to energy products.

Cryptocurrency

Cryptocurrency markets showed modest broad-based gains over the last 24 hours.

 

Bitcoin (BTC) is currently trading at $67,200.51, reflecting a 1.23% increase. Ethereum (ETH) followed suit, edging up 0.12% to reach $1,957.02.

 

Performance across major altcoins was largely positive, led by a strong recovery in Solana (SOL), which climbed 2.44% to $83.33. BNB also saw gains, rising 0.83% to trade at $608.21, while TRON (TRX) gained 2.36% to reach $0.2850.

Key Event

Ledn Issues First Bitcoin-Backed Bond in ABS Market

 

Crypto lender Ledn Inc. issued $188 million in Bitcoin-backed securitized bonds, marking a first for the Asset-Backed Securities (ABS) market.

 

The deal, structured by Jefferies, included investment-grade tranches priced at 335 basis points over the benchmark. This signals a major milestone in integrating digital assets into traditional debt markets.