World Shares Advance as Wall Street Recovers from AI Fears

In mid-February 2026, global markets are staging a recovery following a volatile week characterized by “AI overvaluation” fears and geopolitical tensions. As of Saturday, February 21, 2026, investor sentiment has stabilized, aided by significant corporate developments and a favorable ruling on trade policy.

A primary catalyst for the rebound was the Supreme Court’s decision to strike down the administration’s reciprocal tariffs on Friday, February 20. While the White House immediately countered with a new 10% global tariff via executive order, the removal of the previous legal uncertainty provided a temporary boost to major tech and retail players like Amazon and Home Depot.

Market Performance Overview (Feb 20–21, 2026)

The tech-heavy Nasdaq snapped a five-week losing streak, while the S&P 500 equal-weighted index hit new all-time highs, signaling that while AI remains volatile, the broader market remains resilient.

The AI Sentiment Shift

The narrative around AI has moved from “unbounded growth” to “infrastructure reality.” After a sharp sell-off earlier in February—where companies like Booking Holdings lost 25% of their value due to fears of AI disruption—the market is finding its footing.

• Nvidia–Meta Partnership: Optimism returned after Nvidia announced a massive deal to supply Meta Platforms with millions of chips for AI data centers. This reaffirmed that despite valuation concerns, capital expenditure in AI infrastructure remains a priority for hyperscalers.

• OpenAI Funding: Reports that Nvidia is planning a $30 billion investment in OpenAI’s next funding round (valuing the startup at $730 billion) helped restore confidence in the “AI ecosystem,” even as OpenAI begins to diversify its chip suppliers away from Nvidia.

• Economic Data: Investors are now focused on the March Federal Reserve meeting. With Core PCE inflation holding at a sticky 3%, many analysts expect the Fed to keep rates at the current 3.5%–3.75% range until at least June.