Daily Market Report - February 18, 2026

February 18, 2026

Executive Summary

Markets showed mixed performance on February 18, 2026, with US indices posting modest gains while Korean markets experienced volatility. The S&P 500 climbed 0.57% to close at 6,882.22, while the KOSPI rose 0.28% to 5,507.01. Semiconductor stocks displayed divergent trends with Samsung Electronics gaining ground in Seoul while NVIDIA declined in New York.

Key Highlights:

• US Markets: Broad-based gains across major indices led by tech sector
• Korean Markets: KOSPI and KOSDAQ both advanced despite semiconductor weakness
• Currency: USD/KRW at 1,448.96, showing dollar strength
• Top Performers: Amazon (+1.38%), Samsung Electronics (+1.46%)
• Notable Declines: NVIDIA (-2.24%), SK Hynix (-0.90%)

Market Indices Performance

United States

South Korea

Analysis: US markets demonstrated resilience with the Nasdaq leading gains at +0.72%, suggesting continued investor confidence in technology sectors. The S&P 500’s advance to 6,882.22 marks another milestone in this year’s rally. Korean markets showed strength with KOSDAQ significantly outperforming at +1.77%, indicating robust investor appetite for Korean growth stocks.

Korean Blue-Chip Stocks

Analysis:

Samsung Electronics (005930) - Strong Performance

• Closed at 181,200 KRW, up 1.46% with exceptionally high volume (33.4M shares)
• The strong volume suggests institutional buying interest
• Positive momentum likely driven by improved semiconductor outlook and AI chip demand
• Trading well above psychological support at 180,000 KRW

SK Hynix (000660) - Modest Decline

• Down 0.90% to 880,000 KRW despite healthy volume
• Profit-taking after recent gains likely explanation
• Long-term fundamentals remain strong with memory chip recovery underway

Hyundai Motor (005380) - Weakness Continues

• Declined 1.38% to 499,000 KRW
• Automotive sector facing headwinds from global demand concerns
• Watch for support at 495,000 KRW level

US Magnificent 7 Technology Stocks

Analysis:

Amazon (AMZN) - Strong Gains

• Up 1.38% to $201.09, showing continued strength in cloud and retail
• Breaking through $200 resistance level with conviction
• AWS growth and retail efficiency driving investor confidence

Microsoft (MSFT) - Pullback

• Declined 1.11% to $396.86 from previous close of$401.32
• Profit-taking after strong recent run
• Still holding above key $395 support level
• Volume: 32.1M shares indicating normal trading activity

NVIDIA (NVDA) - Notable Decline

• Down 2.24% to $182.78, largest decliner among Mag 7
• Semiconductor sector rotation likely catalyst
• Despite decline, AI chip demand narrative remains intact
• Watch $180 support level closely

Meta (META) - Slight Weakness

• Down 0.11% based on available data
• Minimal movement suggests consolidation phase

Tesla (TSLA) - Marginal Gain

• Up 0.18%, showing stability
• EV sector showing resilience amid broader market gains

Currency Market

USD/KRW Exchange Rate

Analysis:

• The won weakened to 1,448.96 per dollar
• Dollar strength reflects broader risk-off sentiment in emerging markets
• Korean exporters (Samsung, Hyundai) may benefit from weaker won
• Watch 1,450 psychological resistance level

Impact on Korean Stocks:

• Positive for exporters: Samsung Electronics, SK Hynix, Hyundai Motor
• Weaker won improves overseas earnings when repatriated
• May offset some domestic demand weakness

Bond Market & Fixed Income

US Treasury Yields

Note: Real-time treasury data currently unavailable due to API limitations. Historical context suggests:

• 10-Year Treasury yields likely range: 4.1% - 4.3%
• 30-Year Treasury yields likely range: 4.4% - 4.6%

Market Implications:

• Current yield levels continue to support selective equity valuations
• Tech stocks sensitive to rate environment remain under scrutiny
• Fixed income provides competition for equity allocations

Sector Analysis & Themes

Technology Sector

Mixed Performance:

• Software/Cloud leaders (MSFT, AMZN) showing divergent paths
• Semiconductor space volatile (Samsung up, NVIDIA down, SK Hynix down)
• AI narrative remains supportive but profit-taking evident

Semiconductor Industry

Tale of Two Markets:

• Korea: Samsung gaining on supply discipline and AI chip positioning
• US: NVIDIA declining despite strong fundamentals, likely technical correction
• Memory chip recovery story (SK Hynix) facing near-term headwinds

Automotive

Challenges Persist:

• Hyundai Motor down 1.38%
• Global demand concerns weighing on sector
• EV transition costs pressuring margins

Risk Factors & Considerations

Market Risks

1. Valuation Concerns: US indices at elevated levels (S&P 500 near 6,900)
2. Semiconductor Volatility: Divergent trends suggest sector uncertainty
3. Currency Pressure: Won weakness could accelerate if dollar strengthens further
4. Geopolitical: Ongoing monitoring of East Asian regional dynamics

Opportunities

1. Korean Exporters: Weak won provides tailwind
2. Tech Consolidation: Pullbacks in MSFT, NVDA may offer entry points
3. Cloud Growth: Amazon’s strength highlights ongoing cloud adoption
4. KOSDAQ Momentum: Strong 1.77% gain suggests growth stock appetite

Market Outlook

Short-term (1-5 days)

• US Markets: Consolidation likely after recent gains; watch 6,850 support on S&P 500
• Korean Markets: KOSPI range-bound 5,400-5,550; exporters to outperform
• Semiconductors: Volatility to persist; monitor NVIDIA $180 and Samsung 180K levels

Medium-term (1-4 weeks)

• Earnings season conclusions will drive next directional move
• Fed policy expectations remain market-moving catalyst
• Korean won trajectory critical for export-heavy KOSPI

Technical Levels to Watch

• S&P 500: Support 6,850 | Resistance 6,950
• KOSPI: Support 5,450 | Resistance 5,550
• Samsung: Support 178,000 | Resistance 185,000
• USD/KRW: Support 1,440 | Resistance 1,455

Trading Volume Analysis

High Volume Alerts

• Samsung Electronics: 33.4M shares - 2x average volume suggests institutional activity
• Microsoft: 32.1M shares - normal institutional activity
• SK Hynix: 3.4M shares - healthy liquidity

Interpretation: Samsung’s exceptional volume on an up day is bullish, suggesting accumulation rather than distribution.

Conclusion

February 18, 2026, delivered a constructive session for both US and Korean markets, though underlying currents suggest selectivity is key. The divergence between Amazon’s strength and Microsoft’s weakness, alongside NVIDIA’s decline, indicates sector rotation rather than broad risk-off behavior.

Korean markets benefited from currency dynamics and Samsung’s strong performance, though concerns about SK Hynix and Hyundai Motor warrant attention. The KOSDAQ’s outperformance signals healthy risk appetite for Korean growth stocks.

Key Takeaways:

1. US market breadth remains positive but watch for consolidation
2. Korean exporters positioned well with current USD/KRW levels
3. Semiconductor sector requires selective approach
4. Monitor treasury yields for equity valuation implications

Investor Action Items:

• Review semiconductor holdings for rebalancing opportunities
• Consider Korean exporter exposure given currency tailwinds
• Watch for NVIDIA support test at $180 for potential entry
• Monitor Samsung momentum for continuation above 181,000 KRW

Report compiled: February 18, 2026, 4:00 PM EST Data sources: Naver Finance, Yahoo Finance, XE Currency, Market Indices Fetchers Next report: February 19, 2026

Disclaimer: This report is for informational purposes only and does not constitute investment advice. Market data is subject to delays and accuracy limitations. Investors should conduct their own research and consult financial advisors before making investment decisions.