Why Is the US Stock Market Down Today?

The US stock market opened lower on February 17, 2026, the first session after Presidents’ Day, with the S&P 500 trading around 6,840, down about 0.65% from Friday’s high but up roughly 0.58% since today’s open, suggesting buyers stepped in later. Volatility remained elevated, with the VIX holding above 20 near 20.97.

Persistent “SaaSpocalypse” fears that AI will disrupt traditional software and tech business models weighed on sentiment, making Information Technology the weakest sector (down about 1.5% intraday). The Technology Select Sector (XLK) lagged, off roughly 1.24%, while software names such as Synopsys fell about 4.4% amid the sell-off.

Defensives outperformed, with Utilities (XLU) showing relative strength. On the macro front, the New York Fed’s Empire State Manufacturing Index showed modest regional expansion in February at +7.1, slightly below January’s +7.7 but above forecasts.

United States, New York

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