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The main U.S. equity indexes were up and down to start a holiday-shortened week on Wall Street, but all three managed to post modest gains. Uncertainty about artificial intelligence (AI) has replaced President Donald Trump’s tariff policy as the primary variable for price action so far in 2026, with markets struggling to make sense of this revolution in terms of return on investment.
The Cboe Volatility Index (VIX) spiked to 22.96 from 21.20 on Friday but settled at 20.24. The market’s “fear index” is up from 14.95 at the end of 2025, and sits just above the high side of its “normal” range of 12 to 20.
“Overall, the market is still close to record highs,” E*TRADE from Morgan Stanley Managing Director Chris Larkin observes, “but it may not feel that way to some investors because of the sharp sell-offs that seem to derail upswings almost as soon as they begin.”
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As Larkin notes, “AI disruption concerns are now hitting other sectors. If that theme persists, it could result in a bumpy road for the market, even if the overall trend is to the upside.” Pullbacks, he adds, “may offer opportunities in industries and specific stocks where AI is just as much of a potential tailwind as a headwind.”
The Empire State Manufacturing Index slipped to 7.1 in February from 7.7 in January, but was roughly in line with consensus expectations. The NAHB Housing Market Index (HMI) printed at 36 for February, down from 37 in January and missing expectations for a slight improvement.
In the aftermath of a January Consumer Price Index (CPI) report that showed inflation slowed and a January jobs report that showed hiring sizzled to start the year, the biggest events on this week’s economic calendar include the minutes from the January Federal Open Market Committee (FOMC) meeting and the Fed’s preferred inflation gauge.
This week’s earnings calendar includes reports from Deere (DE, -0.3%) and Walmart (WMT, -3.8%). AI bellwether Nvidia (NVDA, +1.2%) is scheduled to report its fiscal 2026 fourth-quarter results on February 25.
At the closing bell, the Nasdaq Composite was higher by 0.1% at 22,578, the S&P 500 had added 0.1% to 6,843, and the Dow Jones Industrial Average was up 0.1% at 49,533.
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More power to utility stocks
DTE stock surged in pre-market trading, rising more than 30% after management reiterated 2026 guidance (pdf) for operating EPS of $7.59 to $7.73, which would represent 4.1% growth at the midpoint vs 2025 EPS of $7.36.
In December 2025, the Michigan Public Service Commission (MPSC) conditionally approved an agreement between DTE and a subsidiary of Oracle (ORCL, -3.8%) to provide 1.4 gigawatts (GW) of power to a $7 billion data center project in Saline Township, Michigan.
As DTE noted in a statement announcing its results, the deal “is expected to produce significant affordability benefits for its electric customers and drive economic progress in Michigan.”
Revenue from the agreement, which runs through 2045 with options to extend, will “cover the costs associated with powering the data center,” and “DTE’s existing customers will not subsidize data-center rates.”
Despite “heightened noise around data‑center development” in Michigan, DTE continues “to receive constructive, balanced regulatory outcomes,” observes Mizuho Securities analyst Anthony Crowdell.
Crowdell describes DTE as a “premium” utility due to AI-driven demand in its home state and rates the stock Outperform (Buy) with a 12-month target price of $144.
Ship-shaped M&A
ZIM Integrated Shipping Services (ZIM, +25.5%) surged on Tuesday following an announcement on Monday that Germany-based container shipping company Hapag-Lloyd (HLAGF, +0.1%) has agreed to buy the U.S.-listed, Israel-based industrial stock for $35 per share in cash.
Amid collapsing freight rates and container volumes, Hapag-Lloyd will pay a total of $4.2 billion for its rival, subject to ZIM shareholder and relevant regulatory approvals.
The combined entity will be the fifth-largest container shipping company in the world, including more than 400 vessels with total capacity exceeding 3 million 20-foot equivalent units (TEU) and an annual cargo volume forecast of more than 18 million TEU in 2027.
