Global Markets Wrap: Kospi Record High, Fed Split, Oil Surge & Tech Moves
Financial Markets Update | 19 February 2026
1. South Korea's Kospi Jumps to Record High
South Korea's Kospi hit a fresh record high Thursday, as the region tracked gains on Wall Street and several bourses in Asia resumed trading after the Lunar New Year holiday. The Kospi index jumped 2.84%, with index heavyweights Samsung Electronics and SK Hynix up 4.14% and 1.48%, respectively. The investment bank forecasts 120% growth for Korean equity markets in 2026, after rising 36% in 2025. The small-cap Kosdaq advanced 4.68%. Australia's S&P/ASX 200 rose 0.93%. Japan's Nikkei 225 added 0.72%, while the Topix rose 1.12%.
2. S&P 500 Rises, Led by Nvidia
The S&P 500 moved higher on Wednesday, supported by gains in key technology names, as traders weighed the Federal Reserve's most recent policy meeting minutes. The index climbed 0.56% to close at 6,881.31, while the Nasdaq Composite added 0.78% to close at 22,753.63. The Dow Jones rose 129.47 points (0.26%) to settle at 49,662.66. Nvidia shares advanced 1.6% after Meta Platforms announced plans to use millions of Nvidia chips in its data centre buildout.
3. Gold Hovers Around $4,980 per Ounce
Gold hovered around $4,980 per ounce on Thursday, remaining choppy after retreating from late-January record levels as markets assessed the latest FOMC minutes. The January meeting notes showed Fed officials were split — some favoured pausing rate cuts, while others raised the possibility of rate hikes. Traders pared expectations for multiple cuts. Key GDP and PCE data releases later this week are now in focus. Short-term demand eased with China's Lunar New Year holiday thinning liquidity.
4. WTI Crude Oil Rises to $65.5 per Barrel
WTI crude oil futures rose to around $65.5 per barrel on Thursday, extending the strongest advance since late October, driven by fears of imminent US military intervention in Iran. Reports indicated any US action would unfold as a weeks-long campaign aimed at regime change. Talks remained inconclusive — Tehran claimed a "general agreement" on a nuclear deal framework, while VP JD Vance said Iran failed to address US red lines, and President Trump reiterated that military force remains an option.
5. Fed Officials Split on Interest Rate Path
Divided Federal Reserve officials at their January meeting indicated further rate cuts should be paused and could resume only if inflation cooperates. The minutes from the Jan. 27–28 FOMC meeting showed members conflicted between fighting inflation and supporting the labour market. Several participants noted that further downward rate adjustments would be appropriate only if inflation declines in line with their projections, while others advocated for potential rate hikes.
6. BOJ to Hike Rate to 1% by End-June
The Bank of Japan is likely to raise its key interest rate to 1% by end-June, according to a majority of economists polled by Reuters — earlier than previously forecast — due to mounting concerns about inflation and a weak yen. The consensus shifted from end-September following PM Sanae Takaichi's landslide election win. In December, the BOJ raised rates to a 30-year high of 0.75%. All 76 polled economists said the BOJ would hold rates steady at its March meeting.
7. ECB's Lagarde Plans to Quit Early
ECB President Christine Lagarde plans to leave her role before October 2027 to give outgoing French President Emmanuel Macron a say in picking her successor, ahead of the spring 2027 French election. A far-right National Rally victory could complicate selection of the next ECB chief. RN president Jordan Bardella accused Macron of a "democratic power grab." France, the EU's second-biggest economy, has historically held significant influence in ECB leadership decisions.
8. US Manufacturing Posts Biggest Gain in 11 Months
US factory production rose 0.6% in January — the largest gain since February 2025 — offering hope for a sector squeezed by import tariffs and high interest rates. Economists had forecast a 0.4% rise. Output rose 2.4% year-over-year. Manufacturing accounts for 10.1% of the US economy but has been hobbled by President Trump's sweeping tariffs, which business leaders say have raised costs for factories and consumers alike.
9. Arm Shares Edge Higher as Nvidia Sells Entire Stake
Arm shares ticked more than 1% higher on Wednesday after documents revealed Nvidia sold its entire stake in the British semiconductor firm. Nvidia had held 1.1 million Arm shares worth $155.8 million at end of Q3 and had been an investor since 2023. When Arm debuted on the Nasdaq in 2023, Nvidia was among strategic investors — alongside Apple, Google, Samsung, and TSMC — who collectively purchased $735 million of Arm shares.
10. Palo Alto Shares Sink 7% After Earnings
Palo Alto Networks shares fell 7% Wednesday despite fiscal Q2 results topping Wall Street estimates, as third-quarter guidance fell short of expectations. CEO Nikesh Arora pushed back against AI-driven selling pressure in software stocks, saying AI won't replace cybersecurity "anytime soon." He noted customers are driving more consistency in their security stacks to respond faster using AI. The rise of AI tools building enterprise workflows in seconds has intensified a broader selloff in software stocks.
11. Airbus Targets 870 Deliveries in 2026
Airbus said it expects to deliver 870 commercial aircraft in 2026, slightly below analyst expectations of ~880, as pressure builds from a recovering Boeing. Airbus delivered 793 aircraft in 2025, slightly beating its revised target of 790. The company had cut its earlier goal of 820 due to supplier quality issues with fuselage panels. While Airbus delivered 193 more planes than Boeing in 2025, Boeing received more orders for the first time since 2018.
12. Meta Reboots Smartwatch Plan for 2026 Launch
Meta Platforms plans to release its first smartwatch this year, reviving its "Malibu 2" project. The device will feature health tracking and a built-in Meta AI assistant. Meta had previously shelved a smartwatch effort in 2022 as part of spending pullbacks in its Reality Labs unit. The news signals a broader comeback for AI-powered wearables, as companies race to embed AI into health and fitness gadgets.
