economy
February 23, 2026
The market is so on edge about AI that it's selling off Monday on an unlikely source
Every weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading.
TL;DR
- Markets are declining due to fears of AI displacing enterprise software companies and negatively impacting the labor market and economy.
- President Trump increased global tariff rates, contributing to market uncertainty.
- The market is sensitive to AI disruption headlines, leading to a 'shoot first, ask questions later' investor approach.
- Honeywell's deal to acquire Johnson Matthey's catalyst technologies business has been reduced from £1.8 billion to £1.325 billion due to revised business performance expectations.
- Investors are rotating from economically sensitive sectors like financials and consumer discretionary into more resilient sectors like consumer staples and health care.
- Eli Lilly is performing well due to its lead in the obesity drug market.
- Upcoming earnings reports and the Conference Board's consumer confidence survey are on the economic calendar.
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