Finance
Trading Day: Wall St rally fades as European shares close at record high; crude surges on supply worries
Published by Global Banking & Finance Review®
Posted on February 19, 2026
4 min readLast updated: February 19, 2026
Quick Summary
Wall Street’s early gains faded as Europe’s STOXX 600 hit a record close. Oil jumped on supply fears and gold rebounded, while Fed minutes showed divisions and an FT report on Lagarde’s early exit stirred FX.
Wall St Rally Ebbs as Europe Sets Record; Oil Jumps on Supply Fears
NEW YORK, Feb 18 (Reuters) - U.S. stocks chased their European counterparts higher on Wednesday, but lost some momentum as the session progressed, while ongoing geopolitical strife helped prompt a rebound in crude and gold prices.
Reports that European Central Bank President Christine Lagarde would leave her post early, and the minutes from the Federal Reserve's most recent policy meeting kept central banks on center stage.
I will go into more detail on today's market moves below. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.
I'd love to hear from you, so please reach out to me with comments at stephen.culp@thomsonreuters.com.
Today's Key Market Moves
* STOCKS: Madison Square Garden Sports surged to recordhighs on potential Knicks spin-off, Garmin and MGM Resorts wereamong the top performers, all "magnificent seven" stocks gained,with Amazon.com leading the pack * SECTORS/SHARES: Energy, consumer discretionary, techand transports all outperformed the broader market * FX: Euro weakens over report of Lagarde's departurefrom the ECB, dollar gains against a basket of world currencies * BONDS: U.S. Treasury yields gain after solid datasuggests Fed will stand pat on rates, for now * COMMODITIES/METALS: Simmering geopolitical tensionssent crude prices surging on supply concerns, gold rising onrenewed safe-haven demandToday's Key Reads
1. Meta Platforms CEO Zuckerberg faced questioning over theeffects of Instagram on the mental health of young users 2. Satellite images show Iran repairing and fortifyingsensitive military sites amid mounting U.S.-Iran tensions 3. Artificial Intelligence boom still fueling U.S.business investment in equipment; housing market still weak 4. Germany will pursue "strategic partnership" with Chinain response to U.S. tariffs 5. The Vatican has announced that it will not participate inU.S. President Donald Trump's "Board of Peace," adding thatefforts to handle crisis situations should be managed by theUnited NationsToday's Talking Points
* Christine Lagarde intends to step down as ECB president
The Financial Times reported Lagarde would leave her post prior to next year's French election in order to give French leader Emmanuel Macron a say in picking her successor. News of Lagarde's possible early departure prompted speculation regarding her potential successor.
* U.S.-mediated peace talks between Russia and Ukraine end abruptly
After two days of negotiations, talks ground to a stop. Ukrainian President Volodymyr Zelenskiy called the talks "difficult" and accused Russia of deliberately delaying progress toward a deal to end the war.
* U.S. business spending ended 2025 on a strong note
New orders for U.S.-manufactured core capital goods - which exclude aircraft and defense items, and are considered a barometer of U.S. corporate capex plans - increased more than expected in December and shipments of these products surged, pointing to solid business spending and economic growth in the fourth quarter.
* Fed minutes reveal policymakers divided on the central bank's next move
Minutes from the Fed's most recent monetary policy meeting revealed officials were in near-unanimous agreement to hold interest rates steady, but remained split over their next move.
What could move markets tomorrow?
* U.S. international trade balance (December) * U.S. jobless claims (last week) * U.S. pending home sales (January) * Euro zone consumer confidence (February) * Euro zone construction output (December) * Canada trade balance (December) * A spate of U.S. Federal Reserve officials are due tospeak, including Atlanta Fed President Raphael Bostic, Fed ViceChair for Supervision Michelle Bowman, Minneapolis Fed PresidentNeel Kashkari, and Chicago Fed President Austan Goolsbee
Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
(By Stephen Culp; Editing by Deepa Babington)
Key Takeaways
- •U.S. stocks opened higher but lost steam as Europe’s STOXX 600 notched a record close. ([investing.com](https://www.investing.com/news/economy-news/trading-day-wall-st-rally-fades-as-european-shares-close-at-record-high-crude-surges-on-supply-worries-4512263?utm_source=openai))
- •Crude prices jumped on supply and geopolitical worries, while gold rebounded on safe‑haven demand. ([marketwatch.com](https://www.marketwatch.com/story/crude-futures-rise-on-u-s-iran-tensions-e59f7dc5?utm_source=openai))
- •Fed minutes signaled divisions and a cautious, wait‑and‑see stance on further rate cuts. ([apnews.com](https://apnews.com/article/d7aabc066d5a3a330022963289abc0c0?utm_source=openai))
- •Reports suggested ECB President Christine Lagarde could step down early; an ECB spokesperson denied a decision had been made. ([ft.com](https://www.ft.com/content/040da9a9-1085-41dc-a8aa-c178ad0814ec?utm_source=openai))
- •Energy, consumer discretionary, tech and transports outperformed as the dollar firmed. ([investing.com](https://www.investing.com/news/economy-news/trading-day-wall-st-rally-fades-as-european-shares-close-at-record-high-crude-surges-on-supply-worries-4512263?utm_source=openai))
Frequently Asked Questions about Trading Day: Wall St rally fades as European shares close at record high; crude surges on supply worries
1What is the European Central Bank (ECB)?
The European Central Bank is the central bank for the euro area. It manages monetary policy, sets key interest rates, and aims to maintain price stability across member countries that use the euro, working with national central banks in the Eurosystem.
2What are Fed minutes?
Fed minutes are the official record of discussions from the Federal Reserve’s policy meeting. They summarize economic assessments, policy options considered, and rationales behind interest-rate decisions, offering insight into how officials view growth, inflation, and financial conditions.
3What are core capital goods?
Core capital goods are business equipment orders excluding aircraft and defense items. Often tracked via durable goods reports, they indicate companies’ investment intentions (capex) and are used as a barometer for future production and economic growth.
4What is consumer confidence?
Consumer confidence measures how optimistic households feel about their financial situation and the overall economy. Survey-based indexes track views on current conditions and expectations, helping analysts anticipate trends in spending, which drives a large share of economic activity.
