Dear Friends,

Tangents: Mardi Gras, enjoy! Lent begins tomorrow.

February 17, 1883: Arthur Ashwell patents “vacant/engaged” toilet lock in London, England.

February 17, 1996: World chess champion Garry Kasparov beat IBM supercomputer "Deep Blue," winning a six-game match in Philadelphia. Go to article

Michael Jordan, basketball player, b. 1963.

Paris Hilton, heiress, b. 1981

‘The brain consistently moved upward and backward’: Astronauts’ brains physically shift in their heads during spaceflight

A new study analyzed brain MRI scans from 26 astronauts and found that the longer someone lived in space, the more their brain shifted in their skull. Read More.

‘Runaway’ black hole detected by the James Webb telescope adds a strange new chapter to our universe’s story

Recent observations suggest that ‘runaway’ black holes are tumbling through the cosmos. Building on decades of theory, the discovery adds a remarkable new chapter to the story of the universe. Read More.

Many men lose their Y chromosomes as they age. It may shorten their lives.

A researcher explores why men lose their Y chromosomes in cells as they age and the health implications associated with this loss. Read More.

AI griefbots could change how we mourn — but there are serious risks ahead

A researcher from the University of Essex dives into the philosophical and ethical questions surrounding "deathbots." Read More.

How long do most planets last?

Planets are born, and they can also "die." So what’s the lifespan of a typical planet? Read More.

2026’s first solar eclipse
A "ring of fire" eclipse will illuminate the sky today — but only about 2% of the world’s population will get to see it.

When reality looks like AI
This photographer captured an image so stunning, people thought it was AI.

Video: America’s evolving style
See how America’s style has evolved through the decades, mirroring the changing times.

A mother’s journey to Olympic gold
Read why motherhood was key to Elana Meyers Taylor grabbing that elusive gold medal.

Robots perform synchronized Kung Fu
A group of humanoid robots wielding swords and nunchucks performed synchronized Kung Fu at China’s Spring Festival Gala. See the stunning act.

PHOTOS OF THE DAY

Beijing, China

Women in traditional dress take a walk in a park on lunar new year’s eve
Photograph: Andr?s Mart?nez Casares/EPA

Donggang, Taiwan

Worshippers gather at Donglong Temple for lunar new year’s eve celebrations
Photograph: Tsai Hsin-Han/Reuters

Venice, Italy

A masked reveller poses for a portrait at dawn in St Mark’s Square during the city’s carnival
Photograph: Stefano Mazzola/Getty Images
Market Closes for February 17th , 2026

Market Index	Close	Change
Dow Jones	49533.19	+32.26
		+0.07%
S&P 500	6843.22	+7.05
		+0.10%
NASDAQ	22578.38	+31.71
		+0.14%
TSX	32896.55	-177.16
		-0.54%

International Markets

Market Index	Close	Change
NIKKEI	57085.25	+518.76
		+0.92%
HANG SENG	26705.94	+138.82
		+0.52%
SENSEX	83450.96	+173.81
		+0.21%
FTSE 100*	10556.17	+82.48
		+0.79%

Bonds

Bonds	% Yield	Previous % Yield
CND. 10 Year Bond	3.227	3.256
CND. 30 Year Bond	3.711	3.729
U.S. 10 Year Bond	4.0464	4.0483
U.S. 30 Year Bond	4.6740	4.6943

BOC Close	Today	Previous
Canadian $	0.7331	0.7344
US $	1.3639	1.3615

Euro Rate 1 Euro=		Inverse
Canadian $	0.6164	1.6186
US $	0.8437	1.1851

Commodities

Gold	Close	Previous
London Gold Fix	4861.45	5043.15
Oil
WTI Crude Future	62.33	62.89

Market Commentary:

On this day in 2000, total trading volume for the day on Nasdaq topped 2 billion shares for the first time and the Nasdaq composite closed above 4500.

Canada

By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite fell 0.5% at 32,896.55 in Toronto.
The move follows the previous session’s increase of 1.9%.
Barrick Mining Corp. contributed the most to the index decline, decreasing 2.6%.
SSR Mining Inc. had the largest drop, falling 7.9%.
Today, 114 of 217 shares fell, while 100 rose; 3 of 11 sectors were lower, led by materials stocks.
Insights
* The index advanced 29% in the past 52 weeks. The MSCI AC Americas Index gained 13% in the same period
* The S&P/TSX Composite is 2.4% below its 52-week high on Feb. 11, 2026 and 48% above its low on April 7, 2025
* The S&P/TSX Composite is down 0.4% in the past 5 days and fell 0.4% in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 21.3 on a trailing basis and 21.5 times estimated earnings of its members for the coming year
* The index’s dividend yield is 2.2% on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$5.24t
* 30-day price volatility rose to 18.11% compared with 18.08% in the previous session and the average of 12.54% over the past month
Index Points
Materials | -173.0953| -2.5| 3/53
Energy | -81.6086| -1.5| 13/24
Information Technology| -1.9979| -0.1| 3/7
Health Care | 0.7729| 0.9| 2/1
Real Estate | 2.9498| 0.6| 15/3
Consumer Staples | 3.4158| 0.3| 8/2
Communication Services| 4.0162| 0.6| 4/1
Utilities | 4.4916| 0.4| 8/5
Consumer Discretionary| 12.5572| 1.2| 6/3
Industrials | 25.3021| 0.7| 23/6
Financials | 26.0391| 0.2| 15/9
Barrick Mining | -19.8200| -2.6| 31.6| 6.4
Agnico Eagle Mines | Ltd | -16.3400| -1.6| -41.9| 24.8
Wheaton Precious | Metals | -14.9200| -2.4| 1.1| 20.2
Manulife Financial | 7.7760| 1.3| 2.1| 1.8
Shopify | 7.8660| 0.6| -41.9| -30.0
CIBC | 7.9880| 0.9| -22.1| 5.9
MT Newswires:
The Toronto Stock Exchange closed lower on Tuesday, returning from a holiday weekend and continuing the volatility that has marked trading so far this month, with the resources-heavy index weighed down by Base Metals and Energy, even as most other sectors were higher, while market watchers appear unsure around how to trade on the interest rate path after the latest inflation numbers.
The S&PTSX Composite Index closed down 177.16 points, or 0.5%, to 32,896.55, continuing a roller-coaster ride for investors who have seen the index lose near 1,100 points one day and also set a record close another, all within the last three weeks.
Among sectors, Base Metals was down 2.3% while Energy eased near 1% amid deflated commodity prices.
The Battery Metals Index led gainers, up 2.75% Of commodities, gold slumped by midafternoon Tuesday, falling back under the US$5,000 mark with Asian demand weak as markets in the region are closed due to the Lunar New Year holiday, while the dollar pushed higher.
Gold for March delivery was last seen down $146.50 to US$4,899.80 per ounce.
Also, West Texas Intermediate crude oil closed down as traders lowered risk premiums with talks between the United States and Iran in Geneva said to be progressing.
WTI crude oil for March delivery was up US$0.71 to US$63.60 per barrel, while April Brent crude was down US$1.26 to US$67.39.
On the outlook for interest rates following the release early Tuesday of January Canadian inflation data, Macquarie forecasts a "prolonged pause" from the Bank of Canada followed by a rate hike in Q4 2026.
David Doyle, head of economics at Macquarie Group, said Canada’s inflation measures were subdued again in January.
Doyle noted the average of trim/median rose by +0.1% MoM and +2.45% YoY; traditional core (ex. food/energy) was +0.1% MoM and decelerated to +2.4% YoY; and headline inflation moderated to +2.3% YoY, with YoY figures boosted by base effects resulting from the GST/HST tax break in late 2024 and early 2025.
These will unwind in Feb/ March, putting downward pressure on year-over-year CPI measures near-term, Doyle added.
Doyle said softer inflation is a development Macquarie has been anticipating.
Macquarie’s forecast outlined in its team’s 2026 Global Economic and Market Outlook is for traditional core to reach +2.0% YoY by Q2 2026. Doyle added:
"Shelter disinflation was apparent in January and has further to run. Recent strength in CAD should create some disinflation in imported goods.
Later in the year, we anticipate that a shrinking output gap amidst economic improvement and negative population growth may start to offset these impacts and lead to a modest firming in underlying inflation."
Macquarie continues to believe the BoC completed its rate cutting cycle at its October meeting. It anticipates a prolonged pause from the BoC and that the next move will be a hike as the output gap diminishes and unemployment falls.
Macquarie’s baseline for this to occur remains Q4 2026. But should trade policy uncertainty with the US rise and/or inflation come in more sharply than we anticipate it could delay this timing, Doyle said.
But, elsewhere, RBC said low core CPI prints, monthly and three-month trends, raise the chances the BoC will cut.
RBC’s base case remains that the BoC will be on hold in 2026, and hike in 2027.
Previously RBC assigned only a 10% chance to a cut, but after the recent string of core inflation those risks have jumped to 25% considering a likely flat line in Q4 GDP growth and mixed signals from the labor market.
From a trading perspective, RBC said, June/July meetings pricing 6/7bp of cuts "still offers good risk reward to receive".
The bank noted hikes are very unlikely over this timeframe and data "accidents" or USMCA "noise" could push pricing to a greater than 50-50 chance of a cut.
US
By Rita Nazareth
(Bloomberg) — Traders struggling to assess the outlook for artificial intelligence whipsawed stocks in another volatile session on Wall Street.
Gold and silver tumbled.
Following a slide that approached 1%, the S&P 500 bounced — but trimmed its gains ahead of the close.
The US equity benchmark managed to stay above a key technical level – its average price of the past 100 days.
While a gauge of chipmakers finished little changed, a closely watched exchange-traded fund tracking software firms slipped 2.2%.
The turmoil unleashed by AI reflects concerns that are increasingly at odds.
One is that it’s poised to disrupt entire segments of the economy so dramatically that investors dump stocks of any company seen at the slightest risk of being displaced by the technology.
The other is a deep skepticism that the billions of dollars spent in AI will deliver big payoffs soon.
In what’s turning out to be a great quarter for corporate earnings growth, mentions of AI disruption on management calls almost doubled compared to the previous quarter, a Bloomberg News analysis of transcripts shows.
Markets could face more near-term volatility because of concerns about AI disruption and capital expenditures, “weak seasonals and crowded momentum trades,” according to Morgan Stanley’s Michael Wilson.
“The market is still close to records highs, but it may not feel that way to some investors because of the sharp selloffs that seem to derail upswings almost as soon as they begin,” said Chris Larkin at E*TRADE from Morgan Stanley.
“If that theme persists, it could result in a bumpy road for the market, even if the overall trend is to the upside.”
The S&P 500 rose 0.1%.
The yield on 10-year Treasuries was little changed at 4.06%.
Bitcoin sank to around $67,500.
The dollar wavered.
The pound slid as data showing UK unemployment at a five-year high prompted bigger bet on rate cuts.
Oil slipped on signs that the US and Iran have made progress in nuclear talks.
Gold slid below $4,900 an ounce, with much of Asia, the top consuming region, closed for the Lunar New Year.
Silver also retreated.
While it’s difficult to estimate when the more pronounced market swings will be behind us, it’s likely that we will look back on the current volatility as a buying opportunity, according to veteran Wall Street strategist Louis Navellier.
“We need tech/AI/Mag 7 to stabilize, and need to see less ‘sell first/ask questions later’ behavior from investors,” said Sameer Samana at Wells Fargo Investment Institute.
The AI narrative appears to be evolving from an all- encompassing force that drives major stock averages higher to one in which “selectivity” among winners and losers possibly becomes an increasingly critical factor in shaping how an investor’s portfolio performs this year, according to Anthony Saglimbene at Ameriprise.
“Thus, we believe the next phase of the AI cycle could be shaped by a combination of how investors react to big-tech trends as well as how a broader set of companies and industries navigate an environment where technological disruption and innovation possibly spreads faster than many expected,” he said.
However, Saglimbene believes the “knee-jerk” negative reactions seen in areas like software and financial services in recent weeks are likely “overdone,” and opportunities in “well- established, well-run companies” are starting to emerge for those willing to see through the volatility.
“First, the AI-blamed selloff started with the software industry, triggering renewed fears that AI companies will adversely affect their businesses,” said Sam Stovall at CFRA.
“Soon after, the sector version of ‘Whack-a-Mole’ kicked in, initiating rolling corrections in such groups as transportation, wealth management, insurance, and commercial real estate in succession, causing investors to wonder: Where next?”
Stovall cautions investors against getting caught up in the emotional instability generated by these selloffs.
“They remind us that AI will indeed offer cost savings from increased efficiencies and depth of analysis, but these should aid companies by making them nimbler and more profitable,” Stovall added.
“Today, the equity markets are going through a much-needed digestion of gains.”
A record number of investors say companies are spending far too much, according to Bank of America Corp.’s latest fund manager survey.
While investors participating in the survey are the most bullish they’ve been since June 2021, about 35% warned that corporations are overinvesting, strategist Michael Hartnett wrote in a note.
They’re also cutting their exposure to tech stocks.
A quarter of participants in the latest BofA survey saw an “AI bubble” as the top tail risk to markets, while 30% said capital expenditure on AI by the big tech companies was the most likely source of a credit crisis.
Hyperscalers such as Microsoft Corp., Meta Platforms Inc., Alphabet Inc. and Amazon.com Inc. still have positive outlooks despite massive investments in AI and concerns around cash flows, according to JPMorgan Chase & Co. strategists led by Dubravko Lakos-Bujas. They said AI-related capex is projected to grow by 53% over the next 12 months.
“The Street is increasingly more sensitive about what this rate of spending means for cash flow,” the strategists said.
While cash flow is expected to turn negative for some companies, the bank’s analysts see spending coming from a “position of strength.”
“A few months ago, the market debated whether AI was real,” said Jean Boivin at BlackRock Investment Institute.
“Today, it’s seen as an active threat to business models. We believe the hunt to sort the winners and losers reinforces AI’s massive buildout – and the borrowing spree by to finance it.”
Boivin says the market has been “laser-focused” on identifying companies exposed to AI disruption – and sorting out which ones it thinks will be able to evolve and adapt.
“We are still firmly in the AI buildout phase. The mega cap tech companies are spending heavily on chips, data centers and power infrastructure. This is a key reason why we still like infrastructure,” Boivin noted.
“What has changed is the market’s focus: it now asks how AI adoption will translate into revenues and profits. This sorting of winners and losers means it’s prime time for active investing.”
Meantime, debt investors are worried that the biggest tech companies will keep borrowing until it hurts in the battle to develop the most powerful AI.
That fear is breathing new life into the market for credit derivatives, where banks, investors and others can protect themselves against borrowers larding on too much debt and becoming less able to pay their obligations.
Credit derivatives tied to single companies didn’t exist on many high-grade Big Tech issuers a year ago, and are now some of the most actively traded US contracts in the market outside of the financial sector, according to Depository Trust & Clearing Corp.
The sky-high spending to build out the data centers for AI has brought consternation about how long the payback period will be, along with serious concerns regarding the availability of power supply to light them all up, said Navellier.
“While replacing workers with AI software solutions promises shrinking costs, at the same time, it brings questions about labor demand, leading to concerns regarding consumer spending,” he said.
‘Inseparable’
Macro conditions have momentarily taken a back seat to AI disruption, but the two are “inseparable” in the long term, according to Jason Draho at UBS Global Wealth Management.
Thus, thinking about what AI means for terminal values at a macro level is just as important to evaluating the investment outlook.
“The debate over who will be the corporate beneficiaries and losers from AI shouldn’t obscure the potentially large macro implications,” he said.
“Higher productivity, lower inflation, and labor market disruptions are all possible. While the terminal value for some companies may indeed be zero because of AI, the ‘terminal GDP’ for the entire US economy is likely to be a lot larger in a decade because of that same AI disruption than had it not occurred.”
In other words, the overall economic pie will be bigger, Draho noted.
“The critical question for asset allocation is how will that pie be divided across society, and asset classes,” he said.
“Even if AI doesn’t end up being particularly disruptive for labor markets, capital (i.e., investors) is still likely to get many of the benefits.
That big picture conjecture on the division of macro terminal values is important to keep in mind while wondering which sector might be impacted next.”
Federal Reserve Bank of San Francisco President Mary Daly said that while there isn’t much indication, yet that AI is fundamentally changing the US economy, policymakers must be open to signs that the new technology will have an impact.
Among other notable central banks speakers, Fed Governor Michael Barr said rates should remain steady until officials see more evidence that inflation is heading toward the central bank’s 2% target.
Separately, Fed Bank of Chicago President Austan Goolsbee told CNBC there is potential for more rate cuts this year, if inflation continues to return towards the goal.

Corporate Highlights:
* Apple Inc. is accelerating development of three new wearable devices as part of a shift toward artificial intelligence- powered hardware, a category also being pursued by OpenAI and Meta Platforms Inc.
* Anthropic PBC is releasing a new artificial intelligence model that’s intended to be better at using people’s computers in increasingly complicated ways, building on the startup’s efforts to make
* Palantir Technologies Inc. said it’s moved its headquarters to Miami from Denver at a time when tech firms are headed to South Florida as local officials promote the region as an alternative to California’s Silicon Valley.
* Citigroup Inc. shares have room to run due to improving profitability at the bank, Morgan Stanley analysts said after the stock hit a 17-year high this month.
* Robinhood Markets Inc. is seeking to raise $1 billion in an initial public offering of a closed-end fund designed to give US retail investors access to private companies, as the brokerage associated with meme stocks chases the latest frenzy
* Warner Bros Discovery Inc. has agreed to reopen negotiations with rival Hollywood studio Paramount Skydance Corp. after the suitor proposed raising its bid and sweetened other terms of its offer, setting the stage for a renewed showdown with Netflix Inc.
* UnitedHealth Group Inc.’s chairman and chief executive officer, Stephen Hemsley, has invested in health-care startups for years, creating the potential for conflicts of interest, according to The Wall Street Journal.
* The US Air Force said it intends to complete by the end of the year a restructuring plan for the new Sentinel intercontinental ballistic missile system from Northrop Grumman Corp., after the projected $141 billion program was plagued by skyrocketing costs
and fielding delay
* Home Depot Inc. is making the requirements for bonus payouts to managers more strict as the retailer confronts a business slowdown.
* Gemini Space Station Inc., the crypto exchange founded by Cameron and Tyler Winklevoss that went public just before Bitcoin’s plunge, said three top executives left the company in a sweeping leadership shakeup that followed a broad round of layoffs earlier this month.
* Michael Saylor’s Strategy Inc. bought nearly $170 million in Bitcoin, roughly half of which was financed with perpetual preferred stock, the highest proportion since November.
* AMC Entertainment Holdings Inc. is seeking nearly $2.5 billion from credit investors to refinance existing debt.
* General Mills Inc. lowered its fiscal 2026 sales outlook, citing a more challenging consumer environment.
* Genuine Parts Co. will split into two publicly traded companies following a review of options for its automotive and industrial business lines.
* Danaher Corp. agreed to buy Masimo Corp., in a deal with an enterprise value of about $9.9 billion, allowing it to gain a foothold in the medical supply business.
* Blackstone Inc. has agreed to acquire residential services provider Champions Group in a deal that shows how private equity firms are seeking refuge in sectors less vulnerable to AI disruption.
* Tech enthusiasts’ craze for artificial intelligence program OpenClaw has sparked a blistering rally in shares of Raspberry Pi Holdings Plc, the company that makes one of the simplest forms of personal computers.
* Adani Group plans to invest $100 billion by 2035 to develop green-powered, AI-ready data centers as billionaire Gautam Adani seeks to capitalize on India’s bid to emerge as a hub for artificial intelligence and cloud computing.
* Bayer AG agreed to pay more than $7 billion as part of a settlement push to resolve current and future cancer lawsuits over its top-selling Roundup weedkiller, the company announced Tuesday.
* Emirates Chief Financial Officer Michael Doersam, one of the senior executives who helped transform the Dubai carrier into the world’s biggest international airline, will leave his job by the end of June.

Some of the main moves in markets:
Stocks
* The S&P 500 rose 0.1% as of 4 p.m. New York time
* The Nasdaq 100 fell 0.1%
* The Dow Jones Industrial Average was little changed
* The MSCI World Index rose 0.1%
* Bloomberg Magnificent 7 Total Return Index rose 0.2%
* UBS US AI Winners Index fell 0.1%
* iShares Expanded Tech-Software Sector ETF fell 2.2%
* Philadelphia Stock Exchange Semiconductor Index was little changed
* The Russell 2000 Index was little changed
* S&P 500 Equal Weighted Index fell 0.3%
Currencies
* The Bloomberg Dollar Spot Index was little changed
* The euro was unchanged at $1.1851
* The British pound fell 0.5% to $1.3562
* The Japanese yen rose 0.1% to 153.26 per dollar
Cryptocurrencies
* Bitcoin fell 1.6% to $67,697.73
* Ether fell 0.2% to $1,993.83
Bonds
* The yield on 10-year Treasuries advanced one basis point to 4.06%
* Germany’s 10-year yield declined two basis points to 2.74%
* Britain’s 10-year yield declined two basis points to 4.38%
Commodities
* West Texas Intermediate crude fell 1% to $62.25 a barrel
* Spot gold fell 2.2% to $4,882.97 an ounce

–With assistance from Chris Nagi.

Have a lovely evening.

Be magnificent!

As ever,

Carolann

One day you will wake up and there won’t be any more time to do the things you’ve always wanted. Do it now. –Paulo Coelho, b. 1947.

Carolann Steinhoff, B.Sc., CFP?, CIM, CIWM

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7

Tel: 778.430.5808

(C): 250.881.0801 (Text Only)

Toll Free: 1.877.430.5895

Fax: 778.430.5828

www.carolannsteinhoff.com