— Updated . Asian equity markets looked poised to open higher after a volatile US trading day, as pressure tied to artificial-intelligence–linked selling showed signs of easing and precious metals staged a rebound. Futures pointed up: contracts on the S&P 500 rose 0.2% after the cash index fluctuated and closed 0.1% higher on Tuesday, while Nasdaq 100 futures gained 0.3%. Several Asian bourses regained ground for the first time in four sessions even as exchanges in China, Hong Kong and other regional markets remained closed for Lunar New Year.
Key Takeaways
- S&P 500 futures were up about 0.2% following a choppy session in which the underlying S&P 500 finished 0.1% higher on Feb. 17, 2026.
- Nasdaq 100 futures rose roughly 0.3% as technology-related volatility eased after recent AI-driven selling pressure.
- Asian shares advanced for the first time in four trading days; liquidity remained constrained because major markets in China and Hong Kong were closed for Lunar New Year.
- Precious metals recovered from recent weakness, signaling a partial shift toward safe-haven demand or repositioning by commodity traders.
- European equities were set for a stronger open, reflecting overnight futures gains and subdued risk aversion in US trading.
- Market breadth and headline drivers remain fragile: short-term stability does not eliminate the potential for renewed swings tied to AI sector flows and macro data.
Background
Equity markets have been volatile this month as investors digested rapid sector rotations, especially around companies tied to artificial intelligence. Large-cap US technology names have experienced heavier intraday swings as profit-taking and algorithmic rebalancing amplified moves. That pattern contributed to several consecutive down sessions in Asia before the pause indicated on Feb. 17–18, 2026. Lunar New Year holidays further complicate the picture by reducing regional liquidity: with onshore China and Hong Kong markets closed, trading volumes and cross-border flows are lower than typical for a weeknight in global markets.
Futures contracts tend to react more quickly to overnight headlines than cash markets, making them sensitive barometers of investor sentiment between sessions. The S&P 500 and Nasdaq 100 futures are commonly watched for clues about the US open and European trading. At the same time, commodities such as gold and silver can reflect both risk-off impulses and currency movements; their rebound this cycle suggests some repositioning away from the most-correlated growth trades. Policymakers and central-bank commentary remain on investors’ watch lists, even if no major announcements were scheduled for the immediate window.
Main Event
On Feb. 17 (US session), the S&P 500 oscillated during trading before finishing up 0.1%, while Nasdaq benchmarks showed relative resilience amid sector rotation. That intraday choppiness followed days in which AI-linked names had been a focal point for selling pressure. Overnight futures trading showed a modest recovery: S&P 500 futures were about 0.2% higher and Nasdaq 100 futures near 0.3% gains in pre-open trade, signaling potential spillover into Asian and European trading hours.
Asia’s regional exchanges reflected that tentative improvement, with several index futures and local benchmarks rising after four straight sessions of declines. However, the benchmark rebound occurred alongside lower-than-normal turnover because mainland China and Hong Kong markets were closed for Lunar New Year observances, limiting full regional participation. European markets were also penciled in for a firmer open, as indicated by index futures and sector-specific moves in early trading hours.
Precious metals registered gains after recent weakness, with traders citing both technical buying and selective safe-haven flows. The metals rebound contrasted with the prior few sessions when risk assets, especially AI-focused equities, bore the brunt of selling. Market participants noted that the combination of thinner liquidity and concentrated positioning in a handful of megacap names had amplified recent moves, making short-term price action more reactive to headlines and algorithmic trading patterns.
Analysis & Implications
Short-term stabilization in futures suggests that some of the immediate selling pressures tied to AI momentum trades may have been digested, at least temporarily. When concentrated selling hits a narrow set of names, it can spill into broader indices through derivatives and index-tracking funds; a pause in those flows often brings a quick rebound in futures. That does not guarantee a sustained rally—underlying fundamentals and earnings expectations for the technology-heavy cohort remain key determinants of the next leg of the market cycle.
The Lunar New Year holiday introduces a meaningful liquidity caveat: closed mainland venues reduce arbitrage efficiency and can produce outsized moves in offshore trading. Investors should treat price action during holiday-thin windows with caution, as overnight moves may reverse once full-market participation resumes. For institutional traders, the timing of rebalancing or large order execution around holiday periods can materially affect realized prices.
Precious metals’ recovery offers a counterpoint to pure risk-on narratives. Metals often rise on either safe-haven demand or on inflation and currency expectations; the current bounce likely reflects a mix of modest risk-off hedging and profit-taking in other asset classes. If AI-related rotation continues to oscillate, commodities and defensive sectors could see recurring intermittent inflows as portfolio managers rebalance exposures.
Comparison & Data
| Instrument | Move (pre-open) | Most recent cash session close |
|---|---|---|
| S&P 500 futures | +0.2% | Underlying S&P 500 closed +0.1% (Feb. 17) |
| Nasdaq 100 futures | +0.3% | Nasdaq cash indexes saw intraday swings on Feb. 17 |
| Asian regional indices | Mixed, generally higher | First rise in four trading days (local calendars impacted) |
The table shows modest positive moves in US futures versus a choppy cash session on Feb. 17. Because several Asian exchanges were shut for Lunar New Year, direct cross-market comparisons should account for lighter volumes and limited onshore participation. Historical patterns indicate that holiday-week trading can exaggerate directional moves; investors comparing percentage changes should weigh volume and calendar effects alongside headline returns.
Reactions & Quotes
“The selling pressure tied to AI appears to be stabilizing, at least in the short run, as some algorithmic flows unwind,”
market strategist, global brokerage
That assessment reflects traders’ observation that concentrated positioning can produce sharp reversals when automated systems recalibrate. The strategist emphasized that a genuine recovery depends on broader participation beyond a handful of megacap names.
“Liquidity is thin with major China and Hong Kong markets closed for Lunar New Year, so overnight moves should be read with caution,”
regional equities trader
Traders noted that holiday closures change the market microstructure, increasing the likelihood of outsized moves in derivatives and offshore instruments. Many institutions said they would wait for full reopening to reassess directional convictions.
Unconfirmed
- Whether the recent AI-related selling has fully paused or merely entered a temporary lull; further data and earnings could reignite volatility.
- Exact contribution of algorithmic vs. discretionary selling to the prior sessions’ declines remains unclear without firm-by-firm flow data.
- Whether precious-metals gains reflect a sustained rotation into safety or short-term technical buying is not yet confirmed.
Bottom Line
Overnight futures signaled a tentative lift for Asian and European markets after a volatile US trading day on Feb. 17, 2026, with S&P 500 futures up about 0.2% and Nasdaq 100 futures near 0.3%. The move suggests short-term relief from AI-related selling but does not eliminate the risk of renewed swings once onshore Asian markets and full liquidity return after Lunar New Year.
Investors should weigh the stabilizing signals against thinner holiday liquidity and concentrated positioning in a handful of large-cap tech names. For most market participants, the prudent approach is to treat gains during holiday-thin conditions as provisional and to monitor earnings, macro data and post-holiday flows for confirmation of a broader trend.