U.S. equity markets are staging a significant "Turnaround Tuesday" recovery today, February 24, 2026, as investors shake off the volatility that characterized the start of the week. Following a sharp sell-off on Monday driven by renewed tariff uncertainty and fears of artificial intelligence (AI) disruption, the major indexes are trending higher in afternoon trading. The rebound is being fueled by a combination of stronger-than-expected economic data and high-profile corporate partnerships that have restored confidence in the technology sector’s growth trajectory.
Major Market Indexes Performance
As of mid-afternoon trading, the major benchmarks are showing broad-based gains. The S&P 500 (SPY) has climbed approximately 0.8%, trading near the 6,890 level and recovering a substantial portion of its previous session's losses. The tech-heavy Nasdaq Composite (IXIC) is leading the charge with a 1.0% gain, as investors return to growth-oriented names. Meanwhile, the Dow Jones Industrial Average (DJI) has added roughly 370 points, or 0.8%, to trade around 49,174.
Market breadth is notably positive today, with the Russell 2000 (IWM) index of smaller companies outperforming the large-cap benchmarks with a 1.2% rise. This suggests that the "risk-on" sentiment is extending beyond just the "Magnificent Seven" and into the broader market.
Economic Data and Policy Impacts
The primary catalyst for today's optimism was the release of the Conference Board’s Consumer Confidence Index for February. The headline figure rose to 91.2, comfortably exceeding the consensus estimate of 87.4 and improving from January’s revised reading of 89.0. While the "Present Situation" sub-index saw a slight decline, the "Expectations Index" surged by 4.8 points, indicating that Americans are becoming less pessimistic about the short-term outlook for income and labor market conditions.
Despite the positive data, the market remains wary of the shifting trade landscape. Investors are closely monitoring the White House's latest proposal for a 15% global tariff, which replaced a previous 10% plan recently overturned by the Supreme Court. While these trade tensions initially rattled the markets on Monday, today's price action suggests that investors are currently prioritizing robust domestic consumption and corporate earnings over geopolitical headwinds.
Corporate News and Ticker Movers
The semiconductor space is seeing massive activity today following a major announcement from Advanced Micro Devices (AMD). The company rallied over 8% after unveiling a multiyear agreement to supply AI chips to Meta Platforms (META). This deal is seen as a direct challenge to the dominance of Nvidia (NVDA), which is also trading higher today as the entire AI infrastructure ecosystem catches a bid.
In the retail sector, Home Depot (HD) reported fourth-quarter results this morning that beat Wall Street expectations. The home improvement giant posted adjusted earnings per share of $2.72 on revenue of $38.2 billion, surpassing analyst projections despite a slight year-over-year decline in total sales. The company’s stock rose nearly 3% as management highlighted the growing strength of its professional contractor business.
Conversely, the pharmaceutical sector saw a sharp decline in Novo Nordisk (NVO), which tumbled more than 16% after its experimental obesity drug, CagriSema, reportedly underperformed in a head-to-head trial against Eli Lilly (LLY) and its blockbuster drug Zepbound.
Upcoming Events and After-Hours Earnings
The earnings season continues to move at a brisk pace. Investors are looking ahead to several major reports scheduled for release after the market close today and throughout the remainder of the week.
- After the Bell Today: High-growth favorites such as CAVA Group (CAVA) and MercadoLibre (MELI) are set to report, alongside legacy tech player HP Inc. (HPQ) and real estate giant Realty Income (O).
- Wednesday & Thursday: The market is bracing for two of the most anticipated reports of the quarter: Salesforce (CRM) on Wednesday and the AI bellwether Nvidia (NVDA) on Thursday. Both reports are expected to provide critical insights into corporate software spending and the continued demand for AI hardware.
With the Federal Reserve in a "quiet period" ahead of upcoming inflation data later this month, corporate performance and consumer sentiment remain the primary drivers of the market's current momentum.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.