The S&P 500 lost 0.5% and the Nasdaq slumped 1.1%, while the Dow edged higher on Thursday as a sharp contraction in semiconductor shares overshadowed a rotation into defensive financials following Nvidia's latest results. Nvidia tumbled 5.5% despite exceeding estimates for earnings and revenue. Investors questioned the sustainability of elevated capital expenditure for artificial intelligence which pressured the broader chip sector with Applied Materials and Lam Research dropping 4.9% and 4.1% respectively. In contrast, the financial sector helped mitigate broader losses after JPMorgan rose 0.9% and American Express gained 2.5%. Salesforce provided a notable divergence in the software space rising 3.9% after beating profit forecasts though a cautious revenue outlook highlighted concerns regarding AI-led disruption.

WTI crude oil futures rebounded 1.5% to around $66.30 per barrel on Thursday, reversing earlier losses of nearly 3%, after Iranian state media said Tehran would not allow enriched uranium to leave the country. The comments underscored tensions in ongoing US-Iran nuclear talks in Geneva, just days before President Donald Trump’s deadline for a deal, reviving concerns that a breakdown could disrupt supplies from the OPEC producer. Prices had fallen earlier after Omani mediators described the discussions as constructive, though negotiations are set to resume later in the day. Oil remains torn between expectations of a global supply glut and rising Middle East risks. Meanwhile, Saudi exports are nearing a three-year high, and flows from Iraq, Kuwait and the UAE have also risen. Markets now await Sunday’s OPEC+ meeting, where a modest output hike for April is under consideration.

Average weekly earnings of non-farm payroll employees in Canada rose by 1.9% year-on-year to C$1,316 in December 2025, following a downwardly revised 2.3% advance in the prior month. The biggest gains were recorded in real estate and rental and leasing (7.7% to C$1,402); transportation and warehousing (6.2% to C$1,395); utilities (5% to C$2,037) and forestry, logging and support (4.7% to C$1,512). By contrast, the largest declines were seen in finance and insurance (-5.7% to C$1,806) and wholesale trade (-3.8% to C$1,490). By province, Prince Edward Island (8.4%) and Manitoba (4.5%) posted the largest increases, while Northwest Territories recorded a 4% decline. On a monthly basis, average weekly earnings were little unchanged in December.

The Eurozone Economic Sentiment Indicator (ESI) fell to 98.3 in February 2026, down from a three-year high of 99.3 in January and below market expectations of 99.8. Sentiment weakened among service providers (5.0 vs 6.8), manufacturers (-7.1 vs -6.8), and construction firms (-2.1 vs -1.3). Consumer confidence (-12.2 vs -12.4) and retailer sentiment (-4.5 vs -5.7) showed modest improvement. Among major economies, the ESI declined sharply in France (-2.8), followed by Italy (-0.6), while remaining broadly stable in Spain (±0.0), Germany (-0.2), and Netherlands (-0.2). On the pricing front, consumer inflation expectations rose 1.6 points to 25.8, while manufacturers’ selling price expectations increased 1.2 points to 11.5, highlighting ongoing inflationary pressures.

The consumer confidence index in Italy rose to 97.4 in February 2026 from 96.8 in the previous month, slightly exceeding market expectations of 97.2. It marked the highest reading since October 2025, as all components of the index improved except for assessments (judgments and expectations) of the personal economic situation and the opportunity to save in the current climate, alongside slightly worsened unemployment expectations. The personal climate edged up to 96.8 from 96.6 in January, the consumer economic climate jumped to 99.1 from 97.4, the current climate rose to 100.7 from 100.1, and the future climate increased to 93.1 from 92.3.

Sterling slipped to $1.35 as voters headed to the polls in a closely watched UK by-election that could have broader political ramifications for PM Starmer. The contest in the Gorton and Denton constituency was triggered by the resignation of former Labour minister Andrew Gwynne. A defeat for the ruling Labour Party would likely rekindle speculation about Starmer’s leadership, particularly after mounting pressure linked to the Peter Mandelson controversy. Investors remain cautious that any political instability involving Starmer and Chancellor Reeves could open the door to a looser fiscal stance, heightening concerns over the UK’s debt trajectory. Markets are also digesting fresh external risks, including US President Trump’s new 10% global tariffs and a third round of US-Iran nuclear talks in Geneva. On the monetary policy front, traders are increasingly pricing in interest rate cuts from the BoE, following softer employment figures and continued easing in inflationary pressures.