Market Climbs 1.03% as Tech Leads Rally, Defensive Stocks Drag — RingCentral Surges, Cogent Slumps
The U.S. stock market closed the week ended February 20, 2026, on a positive note, with broad gains across major indices — though sector performance showed a clear rotation away from defensive names.
Here’s a detailed breakdown of what moved the market:
Overall Market Performance
• The Morningstar US Market Index rose 1.03%
• The S&P 500 gained 1.07%
• The Nasdaq Composite climbed 1.51%
Out of 834 U.S.-listed companies covered:
• 59% advanced
• 41% declined
• None remained unchanged
This indicates a relatively broad-based rally, though not overwhelmingly bullish.
Sector Performance: Clear Winners & Losers
Best Performing Sectors
• Communication Services: +1.91%
• Industrials: +1.62%
The strength in communication services suggests renewed investor appetite for growth-oriented names.
Worst Performing Sectors
• Consumer Defensives: -2.19%
• Utilities: -0.55%
This decline in defensive sectors typically signals investors rotating into higher-risk, growth-focused assets.
Market Cap & Style Breakdown
By Market Cap:
• Large-cap stocks: +1.17%
• Mid-cap stocks: +0.70%
• Small-cap stocks: +0.72%
Large caps led the rally — often a sign of institutional participation.
By Investment Style:
• Growth stocks: +1.29%
• Blend stocks: +0.84%
• Value stocks: +0.19%
Growth clearly outperformed value this week.
Bonds & Commodities Snapshot
• 10-year U.S. Treasury yield rose to 4.08% (from 4.04%)
• 2-year yield increased to 3.48%
• West Texas Intermediate crude rose 5.57% to $66.31
• Gold climbed 1.38% to $5,098.60
Rising yields alongside rising equities suggest markets are digesting macro risks without panic.
Top Stock Gainers
RingCentral (RNG)
• +30.84% this week
• Trading at a 27% discount to fair value
• Still down over 12 months
Strong rebound momentum in a previously pressured stock.
Tandem Diabetes Care (TNDM)
• +29.59%
• Down 41.61% over 12 months
• Trading near fair value
Likely short-term recovery rally.
Omnicom Group (OMC)
• +20.67%
• Trading at a 30% discount to fair value
Valuation-driven upside potential.
Global Payments (GPN)
• +20.43%
• Trading at a 39% discount to fair value
Deep value territory attracting buyers.
Moderna (MRNA)
• +18.09%
• Up 105% in 3 months
• Still trading below estimated fair value
Sustained momentum in biotech space.
Worst Performers
Cogent Communications (CCOI)
• -29.79%
• Down 64.81% over 12 months
• Trading at 39% discount
Sharp correction after prior gains.
Klarna Group (KLAR)
• -27.77%
• Trading at 69% discount
Heavy volatility in fintech segment.
Genuine Parts (GPC)
• -19.77%
EPAM Systems (EPAM)
• -16.54%
Akamai Technologies (AKAM)
• -15.63%
Key Events to Watch This Week
• Consumer Confidence Survey
• Earnings from:
• Home Depot
• Lowe’s Companies
• Salesforce
• Nvidia
• Snowflake
• Baidu
• Zscaler
Also:
• Initial Jobless Claims
• Producer Price Index (PPI)
These could shape short-term direction.
What This Means for Investors
1. Growth is back in favor — at least short term.
2. Sector rotation suggests rising risk appetite.
3. Valuation discounts remain wide in several names.
4. Bond yields rising without market panic signals resilience.
However, sustainability depends on:
• Inflation data
• Earnings strength
• Fed rate expectations
The market is advancing — but selectivity remains crucial.
The U.S. stock market closed the week ended February 20, 2026, on a positive note, with broad gains across major indices — though sector performance showed a clear rotation away from defensive names.
Here’s a detailed breakdown of what moved the market:
Overall Market Performance• The Morningstar US Market Index rose 1.03%
• The S&P 500 gained 1.07%
• The Nasdaq Composite climbed 1.51%
Out of 834 U.S.-listed companies covered:
• 59% advanced
• 41% declined
• None remained unchanged
This indicates a relatively broad-based rally, though not overwhelmingly bullish.
Sector Performance: Clear Winners & Losers Best Performing Sectors• Communication Services: +1.91%
• Industrials: +1.62%
The strength in communication services suggests renewed investor appetite for growth-oriented names.
Worst Performing Sectors• Consumer Defensives: -2.19%
• Utilities: -0.55%
This decline in defensive sectors typically signals investors rotating into higher-risk, growth-focused assets.
Market Cap & Style BreakdownBy Market Cap:
• Large-cap stocks: +1.17%
• Mid-cap stocks: +0.70%
• Small-cap stocks: +0.72%
Large caps led the rally — often a sign of institutional participation.
By Investment Style:
• Growth stocks: +1.29%
• Blend stocks: +0.84%
• Value stocks: +0.19%
Growth clearly outperformed value this week.
Bonds & Commodities Snapshot• 10-year U.S. Treasury yield rose to 4.08% (from 4.04%)
• 2-year yield increased to 3.48%
• West Texas Intermediate crude rose 5.57% to $66.31
• Gold climbed 1.38% to $5,098.60
Rising yields alongside rising equities suggest markets are digesting macro risks without panic.
Top Stock GainersRingCentral (RNG)
• +30.84% this week
• Trading at a 27% discount to fair value
• Still down over 12 months
Strong rebound momentum in a previously pressured stock.
Tandem Diabetes Care (TNDM)
• +29.59%
• Down 41.61% over 12 months
• Trading near fair value
Likely short-term recovery rally.
Omnicom Group (OMC)
• +20.67%
• Trading at a 30% discount to fair value
Valuation-driven upside potential.
Global Payments (GPN)• +20.43%
• Trading at a 39% discount to fair value
Deep value territory attracting buyers.
Moderna (MRNA)• +18.09%
• Up 105% in 3 months
• Still trading below estimated fair value
Sustained momentum in biotech space.
Worst PerformersCogent Communications (CCOI)
• -29.79%
• Down 64.81% over 12 months
• Trading at 39% discount
Sharp correction after prior gains.
Klarna Group (KLAR)
• -27.77%
• Trading at 69% discount
Heavy volatility in fintech segment.
Genuine Parts (GPC)
• -19.77%
EPAM Systems (EPAM)
• -16.54%
Akamai Technologies (AKAM)
• -15.63%
Key Events to Watch This Week• Consumer Confidence Survey
• Earnings from:
• Home Depot
• Lowe’s Companies
• Salesforce
• Nvidia
• Snowflake
• Baidu
• Zscaler
Also:
• Initial Jobless Claims
• Producer Price Index (PPI)
These could shape short-term direction.
What This Means for Investors
1. Growth is back in favor — at least short term.
2. Sector rotation suggests rising risk appetite.
3. Valuation discounts remain wide in several names.
4. Bond yields rising without market panic signals resilience.
However, sustainability depends on:
• Inflation data
• Earnings strength
• Fed rate expectations
The market is advancing — but selectivity remains crucial.