Markets reopened Tuesday after the long Presidents' Day weekend looking a bit indecisive, as if they weren't quite sure what to do with themselves after three days away. Stock futures painted a mixed picture, with the Dow inching up while the Nasdaq continued to drag its feet after last week's losses.
And those losses were real. The previous week hit all major indices pretty hard: the S&P 500 dropped 1.4%, the Dow slipped 1.2%, and the Nasdaq took the biggest hit with a 2.1% weekly decline. Not exactly the start to a holiday-shortened week anyone was hoping for.
Adding to the backdrop of uncertainty, Congressional Democrats and the Trump administration failed to reach a funding deal through September, triggering a partial government shutdown that kicked off Saturday. Just another day in Washington, apparently.
The earnings calendar is packed this week, with investors keeping close tabs on reports from Walmart Inc. (WMT), DoorDash Inc. (DASH), and Molson Coors Beverage Co. (TAP). These releases could provide some much-needed direction for markets still trying to find their footing.
On the rates front, the 10-year Treasury bond was yielding 4.02%, while the two-year bond sat at 3.39%. According to the CME Group's FedWatch tool, markets are pricing in a 90.2% likelihood that the Federal Reserve will keep interest rates unchanged in March. Translation: don't expect any surprises from the Fed anytime soon.
As for Tuesday's early action, futures were all over the map. The Dow Jones futures gained 0.02%, while the S&P 500 futures slipped 0.14%, the Nasdaq 100 futures fell 0.47%, and the Russell 2000 futures declined 0.21%.
The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), which track the S&P 500 and Nasdaq 100 respectively, were both lower in premarket trading. The SPY was down 0.16% at $680.65, while the QQQ declined 0.49% to $598.97.
Companies Making Waves
Ocular Therapeutix
Ocular Therapeutix Inc. (OCUL) absolutely soared 33.56% as the company prepared to announce topline data for its SOL-1 Phase 3 superiority trial in wet AMD on Tuesday. That's the kind of move you see when the market thinks clinical trial results could be game-changing.
According to market data, OCUL maintains a stronger price trend over the long term but shows weakness in the short and medium terms. The stock's trajectory suggests investors are betting big on this data release.
Sonoco Products
Sonoco Products Co. (SON) gained 2.38% after delivering better-than-expected fourth-quarter results. The company reported quarterly earnings of $1.05 per share, beating the analyst consensus estimate of $1.00 per share. Not a massive beat, but solid execution nonetheless.
Market analysis shows SON maintains a stronger price trend across short, medium, and long terms, though its growth ranking remains poor. It's the kind of steady performer that doesn't make headlines but keeps chugging along.
Masimo
Here's where things get interesting. Masimo Corp. (MASI) jumped 33.85% after the Financial Times reported that life sciences giant Danaher is closing in on a nearly $10 billion deal to acquire the pulse oximeter maker. That's a massive premium, and the market clearly thinks this deal is happening.
Interestingly, market data indicates that MASI maintains a weaker price trend over the short, medium, and long terms, with a poor quality ranking. Which makes you wonder what Danaher sees that the market has been missing. Or maybe they're just paying up for strategic value.
Toll Brothers
Toll Brothers Inc. (TOL) was essentially flat, down just 0.07%, as analysts expected the homebuilder to report earnings of $2.11 per share on revenue of $1.85 billion after the closing bell. The housing market has been all over the place lately, so this report could provide some clarity on where things are headed.
Market data shows TOL maintains a strong price trend over the long, medium, and short terms, with a strong value ranking. That's the kind of technical setup investors like to see heading into an earnings report.
ZIM Integrated Shipping Services
ZIM Integrated Shipping Services Ltd. (ZIM) surged 34.46% after agreeing to be acquired by Hapag-Lloyd for $35.00 per share in cash, representing an aggregate cash consideration of approximately $4.2 billion. Another day, another big acquisition in the shipping sector as companies continue to consolidate.
ZIM maintains a stronger price trend over the long, short, and medium terms, with a solid quality ranking according to market data. The acquisition price represents a significant premium to where the stock was trading, and shareholders are clearly happy with the deal.
Looking Back at Friday's Session
Friday's trading session was about as mixed as it gets. Utilities, real estate, and materials sectors led the S&P 500's gainers, while communication services and tech bucked the trend to close lower. It was one of those days where sector rotation mattered more than overall market direction.
The final numbers told the story: the Dow Jones inched up 0.099% to close at 49,500.93, the S&P 500 barely budged with a 0.05% gain to 6,836.17, the Nasdaq Composite slipped 0.22% to 22,546.67, while the Russell 2000 had the best day of the bunch, climbing 1.18% to 2,646.70.
The Big Picture According to Mohamed El-Erian
Renowned economist Mohamed El-Erian has some thoughts about where we're headed, and they're worth paying attention to. He views the 2026 U.S. economy as a "tense tug-of-war" between three distinct futures: a stable "Goldilocks-lite" baseline, a productivity-fueled boom, and a volatile downside. Pick your adventure, basically.
More importantly, El-Erian warns that the broad AI enthusiasm that propelled markets in 2025 is shifting toward what he calls a more skeptical "Anti-AI" sentiment. Investors are increasingly focused on "creative destruction," worried about which sectors will get disrupted before they can successfully adapt. It's a fair concern when you think about how quickly AI is evolving.
He also highlights what he calls an "unsettling" structural shift: the decoupling of GDP growth from job creation. El-Erian notes that while the economy remains macro-resilient, "growth in 2026 may be accompanied by a relatively stagnant labor market," which could potentially exacerbate economic inequality. That's economist-speak for: the economy might grow, but regular people might not feel it in their paychecks.
On the monetary policy front, El-Erian cautions that the Federal Reserve faces a "tricky" path as sticky inflation persists. The Fed's job was never going to be easy, but navigating inflation that won't quite go away while trying not to crater the economy? That's threading a very small needle.
For the stock market specifically, El-Erian expects a move away from the "limitless potential" narrative toward a tactical, bottom-up environment. He emphasizes that the "standard playbook" of riding broad waves is over, stating that "2026 will not bring more of the same; it should be a year of recalibration."
What does that mean practically? Success will now depend on identifying companies that effectively integrate AI rather than those just building its infrastructure. In other words, the picks-and-shovels phase might be giving way to the actually-doing-something-useful-with-AI phase.
Economic Data on the Horizon
This is going to be a busy week for economic data, especially since we're playing catch-up after the holiday. Here's what to watch:
On Tuesday, February's Empire State manufacturing survey data will be released by 8:30 a.m., and February's Home builder confidence index data will be out by 10:00 a.m. ET.
Wednesday is packed: November and December's delayed housing starts and building permits data, along with December's delayed durable-goods orders data, will all be released by 8:30 a.m. ET. January's industrial production and capacity utilization data will be out by 9:15 a.m., and minutes of the Fed's January FOMC meeting will be released by 2:00 p.m. ET. Those Fed minutes could be particularly interesting given all the uncertainty around inflation.
Thursday brings initial jobless claims for the week ending Feb. 14, December's U.S. trade deficit data, February's Philadelphia Fed manufacturing survey, and December's advanced U.S. trade balance in goods, advanced retail inventories, and advanced wholesale inventories data, all by 8:30 a.m. ET. Minneapolis Fed President Neel Kashkari will speak at 9:00 a.m., and December's leading economic index data will be out by 10:00 a.m. ET.
Friday wraps up the week with some heavy hitters: the fourth quarter GDP number, December's personal income, spending, headline, and core PCE data will all be released by 8:30 a.m. ET. February's S&P flash U.S. services and manufacturing PMI will be released by 9:45 a.m., November and December's delayed new home sales report, and February's preliminary consumer sentiment data will be out by 10:00 a.m. ET.
That's a lot of data in a short week, and any of it could move markets if it surprises in either direction.
Commodities, Currencies, and Crypto
Crude oil futures were trading higher in the early New York session, up 0.62% to hover around $63.14 per barrel. Energy markets remain relatively calm despite all the geopolitical noise.
Gold Spot US Dollar rose 1.29% to hover around $4,926.51 per ounce. Its last record high stood at $5,595.46 per ounce, so there's still room to run if investors keep seeking safe havens. The U.S. Dollar Index spot was 0.20% higher at the 97.1060 level.
Meanwhile, Bitcoin (BTC) was trading 1.26% lower at $68,103.54 per coin. Crypto continues to bounce around without any clear direction, which has become pretty much par for the course lately.
Global Market Snapshot
Asian markets closed mixed on Tuesday. China's CSI 300, Japan's Nikkei 225, and South Korea's Kospi indices all fell, suggesting some continued weakness in the region. On the other hand, India's Nifty 50, Australia's ASX 200, and Hong Kong's Hang Seng indices closed higher, providing a bit of balance.
European markets were higher in early trade, shaking off some of the uncertainty that's been weighing on global markets. Whether that optimism holds through the day remains to be seen, but it's a decent start at least.