Morning Dose: Tech Fears Hammer Nasdaq ZIM’s 35% Surge Steals Spotlight – Tuesday 2/17/2026

Good morning traders. Welcome to the morning dose. Everything you need to know before the market opens. It is Tuesday, February 17th, 2026. I hope you enjoyed the holiday weekend. But man, looking at these futures, it feels like the market woke up on the wrong side of the bed. You can see that again, the bears are definitely out of hibernation to start this holiday abbreviated week. We are looking at a sea of red on the screens. S&P 500 futures are down about 27 points, but the real pain trade is in the NASDAQ. Yeah, I see that. NASDAQ futures are down over 200 points. Ouch. What is driving this tech wreck right out of the gate? It's a continuation of that AI fear narrative we saw late last week. You know, the idea that AI disruption is actually starting to hurt software names. Plus, we have specific pressure on the big guys. Micron is down over 2% in the pre-market. Micron, I saw a headline there. Aren't they spending a massive amount of money? Exactly. The Wall Street Journal reports they are aiming to spend $200 billion to expand memory capacity. That is a lot of capex. And in this environment, investors get nervous about that kind of cash burn. On top of that, there is a report from Axios that the Pentagon is mulling ending its relationship with Anthropic. Whoa, the Pentagon cutting ties with a major AI player? That definitely adds to the jitters. But hey, it's not all doom and gloom. I see one massive green candle on the scanner. What is going on with Zim integrated shipping? Oh, that is the trade of the day right there. Zim is gapping up a massive 35%. Hapag Lloyd agreed to acquire them for $35 a share in cash. That's a $4.2 billion deal. Cash deals. We love to see it. It looks like M&A is actually heating up. I also saw Warner Brothers Discovery. Ticker WBD is popping a bit? Yeah, up nearly 3%. It's the soap opera that never ends. Bloomberg says they are considering reopening sail talks with Paramount's guidance. It feels like we have been talking about this merger for two years. But the market likes the rumor today. I'll believe it when the ink is dry. Let's pivot to the real economy. We have a smattering of earnings this morning. How are the industrials holding up? Not great. It looks like the construction trade is cracking. Vulcan materials missed earnings badly, missed by 41 cents. Builders for a source also missed on top and bottom lines. That is not a good signal for the housing or infrastructure sectors. Interesting. So we have weak construction earnings and we have the Empire State Manufacturing Index dropping at 8.30 a.m. Eastern followed by the housing market index at 10 a.m. Right. If that housing data comes in hot or cold, it could exacerbate the moves in those builders. But let's be honest, today is all about the tech sentiment. Agreed. Let's look at the technicals. What is the wave rider analysis telling us for the SPY and QQQ? It is flashing caution. The sentiment is bearish. We are seeing volume spikes on the selling side. For the SPY, you need to watch support right at 677. If we break that, we could flush lower. Resistance is sitting at 680. And for the NASDAQ? The Qs are heavy. Support is at 595. If the tech sell off accelerates, that's the floor we need to hold. Also, keep an eye on the VXX. Volatility is ticking up, trading around 30.22. When the VX wakes up, you need to tighten your stops. Solid advice? Before we go, any quick rapid fire movers or sectors you are watching at the bell? I am watching the defensive rotation. Utilities in healthcare tickers XLU and XLV are showing some relative strength while everything else bleeds. And obviously keep an eye on Apple. They are down slightly, despite the news that new iPads are coming March 4th. If Apple can turn green, maybe the market finds a bottom. All right. Keep your head on a swivel today. Volatility is back and cash is king in a market like this. That's right. Don't be a hero trying to catch falling knives this morning. Let the price action settle. Thanks for listening to The Morning Dose. Good luck out there, trade safe, and we will catch you tomorrow.