Stocks rise as strong results reassure investors.
U.S. equities moved higher as fresh artificial-intelligence developments helped calm recent concerns about disruption across software and other industries. The rally followed stronger-than-expected earnings from Nvidia (NVDA), reinforcing confidence that demand for AI infrastructure remains robust.
Nvidia reported fiscal fourth-quarter results that beat estimates, including 75% growth in its core data-center segment, sending shares higher in extended trading. CEO Jensen Huang said computing demand remains “off the charts,” pushing back on fears that AI will quickly replace established enterprise software providers.
The upbeat results, along with an analyst upgrade for Oracle (ORCL), reassured investors that large-scale AI spending is still intact. Markets reacted positively, with the Dow Jones gaining 0.63%, the S&P 500 rising 0.81%, and the Nasdaq 100 climbing 1.41%, led by technology stocks.
Still, strategists cautioned that transformative technologies often trigger investment cycles that overshoot before stabilizing. That caution was reflected in mixed reactions elsewhere in tech.
Geopolitical developments also remain on watch. Markets continue monitoring U.S.–Iran tensions and shifting trade policy after a 10% global tariff took effect this week, while President Trump’s State of the Union address emphasized economic resilience and outlined new policy proposals.
📊 Market Wrap Feb 26th 2026
🧠 Analyst Notes
💬 Market Highlights
Alibaba Launches Low-Cost AI Coding Plans to Accelerate LLM Monetization
Alibaba (BABA) unveiled low-cost AI coding subscription plans through its cloud unit, offering API access and the flexibility to switch among four Chinese open-source models (Qwen3.5, GLM-5, MiniMax M2.5, and Kimi K2.5) as part of a broader push to monetize its AI products and expand user adoption, the entry-level plan starts at $1 for the first month with up to 18,000 requests before rising to about $6, while the Pro plan supports up to 90,000 requests starting at $5.50 and later increasing to $29, reflecting an aggressive pricing strategy amid intensifying competition in AI coding tools that could disrupt traditional software vendors.
Oracle Rises on Upgrade as Analysts See Strong EPS Leverage and AI Positioning
Oracle (ORCL) gained roughly 4% after Oppenheimer upgraded the stock to Outperform with a $185 price target, arguing that despite the transition toward a more capital-intensive model, EPS could still double or nearly triple by fiscal 2030 even after applying discounts to management’s revenue guidance, while counterparty risks tied to OpenAI are easing, recent capital raises support Oracle Cloud Infrastructure expansion, and its ERP applications business remains relatively insulated from AI disruption, though analysts caution that the stock remains a “show me” story as investors remain concerned about balance sheet strain, margin compression, and cash flow pressure from heavy AI investments.
UMC Appoints New CEO and Ends Co-President Structure
United Microelectronics (UMC) appointed Jason Wang as its new CEO and scrapped its long-standing co-president model as part of a leadership restructuring aimed at strengthening execution and improving decision-making efficiency amid a rapidly evolving semiconductor landscape, with SC Chien transitioning to chairman of affiliate Unimicron Technology and Ming Hsu named president and COO, signaling a streamlined governance structure designed to enhance strategic agility while maintaining continuity in the company’s long-term direction.
📅 Earnings Watch
Nvidia’s results provided a near-term confidence boost for AI-linked stocks, but markets remain sensitive to guidance, capital-spending signals, and macro developments. Traders will now watch whether upcoming earnings confirm this renewed optimism or test it.
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