Wall Street opens lower as investors react to Walmart earnings and rising U.S.–Iran tensions

By mid-morning on February 19, 2026, the S&P 500 was down 0.22% at 6,860 points, the NASDAQ Composite was off 0.31% at 22,680 points, and the Dow Jones Industrial Average had fallen 0.38% to 49,470 points. It was a “risk-off” start to the session, with outflows from more cyclical and technology sectors as the market trims exposure while awaiting greater clarity on earnings and the geopolitical backdrop.

On the corporate front, the spotlight was on Walmart. The retail giant closed 2025 above expectations on both revenue and earnings, yet the stock fell more than 3% in pre-market trading after issuing cautious guidance for 2026. The market thus appears to be prioritizing future prospects over past results, penalizing any signal of a slowdown in margin growth.

By contrast, the reaction to eBay was positive, with the stock up 8% after reporting results above estimates and announcing a $1.2 billion acquisition of Depop from Etsy. The deal triggered an 18% rally in Etsy shares, a sign that the market is rewarding strategic moves capable of strengthening competitive positioning and generating synergies in the e-commerce sector.

In the absence of major macroeconomic data releases, attention remains focused on earnings reports and geopolitical developments. Rising oil prices, linked to tensions with Iran, are helping to keep volatility elevated. In this selective environment, investors seem willing to bet only on credible growth stories, while showing little tolerance for outlooks deemed overly cautious.

Andrea Pelucchi