The stock market fell sharply on Wednesday after latest economic data showed that producer price index, or wholesale inflation, rose 0.7% in February, well above the 0.3% estimates.
Meanwhile, the Federal Reserve kept interest rates unchanged considering the economic uncertainty brought by the geopolitical tensions in the Middle East.
Overall, S&P 500 tumbled 1.4% to 6,625, while NASDAQ dropped 1.5% to 22,152.
Chart of the Day
Here is the one-year chart of Meta Platforms (META) as of February 16, 2026, when the stock was at $640.
Meta Platforms is accelerating investment in AI infrastructure. Last quarter, expenses grew 40% year over year, outpacing 24% revenue growth, with CapEx reaching 37% of revenue.
Just recently, Meta Platforms signed a multi-year AI infrastructure partnership with Advanced Micro Devices (AMD), supporting its strategy to build massive AI infrastructure. This gives Meta access to huge amounts of AI computing power, scaling its AI ambitions more effectively and competitively.
For 2026, management expects even higher CapEx, though investors remain cautious about the heavy AI spending. For 2026, management expects CapEx growth to be ~$125 billion versus $72 billion in 2025. Part of this spending will go to AI glasses.
META is part of the Growth Portfolio and the Focus List.
