The Nasdaq Composite (COMP) enters the final week of February 2026 showing signs of resilience after a period of intense volatility. On Monday, February 23, 2026, investors are closely monitoring the tech-heavy index as it attempts to build on a late-week recovery that saw it snap a challenging five-week losing streak.
Market Performance and Recent Trends
As of the market close on Friday, February 20, the Nasdaq Composite finished at 22,886.07, gaining approximately 0.9% to end the week on a positive note. This recovery followed a turbulent start to the month where the index faced significant downward pressure, including a drop of more than 1% during Tuesday morning trading on February 17. Despite the recent gains, the index has been “treading water” for much of the year as the initial fervor for artificial intelligence (AI) begins to normalize and investors weigh broader economic signals.
Key Drivers: Tariffs and AI Sentiment
The primary catalyst for the recent rebound was a landmark Supreme Court decision that struck down sweeping tariffs previously implemented by the Trump administration. This ruling provided a significant boost to growth and technology stocks, which are highly sensitive to international trade policy and supply chain costs.
However, the “AI trade” remains a double-edged sword for the Nasdaq. While giants like Nvidia continue to lead the market near all-time highs, concerns regarding AI-infrastructure firms and the “Magnificent Seven” have occasionally dampened sentiment. On February 17, fears of AI-related disruption contributed to a 0.2% slide, highlighting the market’s current sensitivity to any perceived cooling in the tech sector.
Understanding the Nasdaq Composite
The Nasdaq Composite remains one of the most vital benchmarks for the global economy, tracking over 3,000 common equities listed on the Nasdaq Stock Market. Unlike the Dow Jones Industrial Average, the Composite is a market capitalization-weighted index, meaning the price movements of its largest constituents—such as Apple, Amazon, and Alphabet—have a disproportionate impact on its daily value.
What to Watch This Week
Investors are shifting their focus toward several key data points and events scheduled for the remainder of February:
- Nvidia Earnings: As the most influential stock in the current market cycle, Nvidia’s upcoming performance report is expected to dictate the direction of the broader tech sector.
- Inflation Data: The December PCE (Personal Consumption Expenditures) inflation reading remains a critical highlight for traders assessing the Federal Reserve’s next moves.
- Consumer Confidence: New data on consumer spending and sentiment will provide insight into whether the U.S. economy can maintain its current strength despite policy uncertainty.
While institutional moves, such as Trevian Wealth Management’s recent $2.7 million purchase of the Fidelity Nasdaq Composite Index ETF (ONEQ), signal continued confidence from some professional quarters, the “Fear & Greed” index has recently dipped into the fear zone, suggesting that retail caution remains high.