{"id":58676,"date":"2026-02-17T18:08:31","date_gmt":"2026-02-17T22:08:31","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/fitch-warns-on-u-s-fiscal-outlook-as-meta-inks-massive-nvidia-chip-pact\/58676\/"},"modified":"2026-02-17T18:08:31","modified_gmt":"2026-02-17T22:08:31","slug":"fitch-warns-on-u-s-fiscal-outlook-as-meta-inks-massive-nvidia-chip-pact","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fitch-warns-on-u-s-fiscal-outlook-as-meta-inks-massive-nvidia-chip-pact\/58676\/","title":{"rendered":"Fitch Warns on U.S. Fiscal Outlook as Meta Inks Massive Nvidia Chip Pact"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fitch-warns-on-u-s-fiscal-outlook-as-meta-inks-massive-nvidia-chip-pact\/58676\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fitch-warns-on-u-s-fiscal-outlook-as-meta-inks-massive-nvidia-chip-pact\/58676\/#Fitch_Warns_of_Fiscal_Drift_and_Tariff_Risks\" >Fitch Warns of Fiscal Drift and Tariff Risks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fitch-warns-on-u-s-fiscal-outlook-as-meta-inks-massive-nvidia-chip-pact\/58676\/#Meta_and_Nvidia_Solidify_AI_Dominance\" >Meta and Nvidia Solidify AI Dominance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fitch-warns-on-u-s-fiscal-outlook-as-meta-inks-massive-nvidia-chip-pact\/58676\/#Devon_Energy_Beats_Estimates_Amid_Merger_Integration\" >Devon Energy Beats Estimates Amid Merger Integration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fitch-warns-on-u-s-fiscal-outlook-as-meta-inks-massive-nvidia-chip-pact\/58676\/#Icahn_and_Netflix_Strategic_Shifts_in_Focus\" >Icahn and Netflix: Strategic Shifts in Focus<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fitch-warns-on-u-s-fiscal-outlook-as-meta-inks-massive-nvidia-chip-pact\/58676\/#Global_Macro_RBNZ_and_Wall_Street_Volatility\" >Global Macro: RBNZ and Wall Street Volatility<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Fitch Ratings<\/strong> warns that <strong>U.S. deficits<\/strong> will remain elevated, citing a lack of political appetite for fiscal consolidation ahead of the <strong>November 2026 midterm elections<\/strong>.<\/li>\n<li><strong>Meta Platforms (<a href=\"\/stock\/META\">META<\/a>)<\/strong> has deepened its partnership with <strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> through a massive pact to deploy <strong>&quot;millions&quot; of AI chips<\/strong>, including the next-generation <strong>Blackwell<\/strong> and <strong>Vera Rubin<\/strong> architectures.<\/li>\n<li><strong>Devon Energy (<a href=\"\/stock\/DVN\">DVN<\/a>)<\/strong> reported a strong fourth quarter with <strong>$702 million in free cash flow<\/strong>, beating earnings estimates despite a temporary production cut forecast for Q1 due to weather.<\/li>\n<li>Activist investor <strong>Carl Icahn<\/strong> reshuffled his portfolio in Q4, exiting positions in <strong>International Flavors &amp; Fragrances (<a href=\"\/stock\/IFF\">IFF<\/a>)<\/strong> and <strong>EchoStar Corp (<a href=\"\/stock\/SATS\">SATS<\/a>)<\/strong> while increasing stakes in <strong>Centuri Holdings (<a href=\"\/stock\/CTRI\">CTRI<\/a>)<\/strong> and <strong>Monro, Inc. (<a href=\"\/stock\/MNRO\">MNRO<\/a>)<\/strong>.<\/li>\n<li><strong>Netflix (<a href=\"\/stock\/NFLX\">NFLX<\/a>)<\/strong> Co-CEO <strong>Ted Sarandos<\/strong> signaled a patient approach toward media industry consolidation, stating the company will wait for <strong>Paramount Global (<a href=\"\/stock\/PARA\">PARA<\/a>)<\/strong> to make its next move before reacting.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Fitch_Warns_of_Fiscal_Drift_and_Tariff_Risks\"><\/span>Fitch Warns of Fiscal Drift and Tariff Risks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Fitch Ratings<\/strong> issued a sobering outlook for the <strong>U.S. economy<\/strong> today, projecting that federal deficits will remain stubbornly elevated through the 2027 fiscal year. The agency noted that <strong>Congress<\/strong> is unlikely to pursue meaningful fiscal consolidation in its <strong>FY27 appropriations<\/strong>, as lawmakers remain focused on the upcoming <strong>November 2026 midterm elections<\/strong>.<\/p>\n<p>Furthermore, <strong>Fitch<\/strong> expects the <strong>Trump administration<\/strong> to bypass traditional legislative hurdles by using <strong>alternative authorities<\/strong> to impose new tariffs if necessary. <em>This executive-led trade strategy is seen as a key risk to baseline economic projections, potentially fueling inflationary pressures while attempting to address trade imbalances.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Meta_and_Nvidia_Solidify_AI_Dominance\"><\/span>Meta and Nvidia Solidify AI Dominance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In a move that sent ripples through the tech sector, <strong>Meta Platforms (<a href=\"\/stock\/META\">META<\/a>)<\/strong> announced a landmark agreement to acquire and deploy <strong>&quot;millions&quot; of chips<\/strong> from <strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong>. The deal includes a heavy commitment to Nvidia&#39;s <strong>Blackwell<\/strong> GPUs and the forthcoming <strong>Vera Rubin<\/strong> platform, as well as the first large-scale adoption of Nvidia\u2019s <strong>Grace CPUs<\/strong>.<\/p>\n<p>The partnership aims to power what <strong>Meta<\/strong> CEO <strong>Mark Zuckerberg<\/strong> described as &quot;personal superintelligence&quot; for billions of users. <em>While the deal solidifies Nvidia&#39;s market leadership, Wall Street remains sensitive to the massive capital expenditure required for AI disruption, leading to continued volatility in broader tech indices.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Devon_Energy_Beats_Estimates_Amid_Merger_Integration\"><\/span>Devon Energy Beats Estimates Amid Merger Integration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Devon Energy (<a href=\"\/stock\/DVN\">DVN<\/a>)<\/strong> delivered a robust Q4 earnings report, generating <strong>$702 million in free cash flow<\/strong> and surpassing analyst expectations for both production and earnings. The company produced an average of <strong>851,000 barrels of oil equivalent (Boe) per day<\/strong>, which was well above its previous guidance.<\/p>\n<p>Looking ahead to 2026, <strong>Devon<\/strong> issued a spending outlook of <strong>$3.5 billion to $3.7 billion<\/strong>, even as it warns of a <strong>10,000 Boe per day<\/strong> output cut in Q1 due to severe winter weather. <em>Investors are closely monitoring the company&#39;s progress as it prepares to close its strategic merger with <strong>Coterra Energy (<a href=\"\/stock\/CTRA\">CTRA<\/a>)<\/strong> in the second quarter.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Icahn_and_Netflix_Strategic_Shifts_in_Focus\"><\/span>Icahn and Netflix: Strategic Shifts in Focus<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Regulatory filings for the fourth quarter revealed significant shifts in <strong>Carl Icahn\u2019s (<a href=\"\/stock\/IEP\">IEP<\/a>)<\/strong> investment strategy. The billionaire activist reduced his exposure to the telecommunications and specialty chemicals sectors by cutting stakes in <strong>EchoStar (<a href=\"\/stock\/SATS\">SATS<\/a>)<\/strong> and <strong>International Flavors &amp; Fragrances (<a href=\"\/stock\/IFF\">IFF<\/a>)<\/strong>, opting instead to boost holdings in infrastructure services provider <strong>Centuri Holdings (<a href=\"\/stock\/CTRI\">CTRI<\/a>)<\/strong> and automotive service chain <strong>Monro (<a href=\"\/stock\/MNRO\">MNRO<\/a>)<\/strong>.<\/p>\n<p>In the media space, <strong>Netflix (<a href=\"\/stock\/NFLX\">NFLX<\/a>)<\/strong> Co-CEO <strong>Ted Sarandos<\/strong> addressed the ongoing bidding war and consolidation talks involving <strong>Warner Bros. Discovery (<a href=\"\/stock\/WBD\">WBD<\/a>)<\/strong> and <strong>Paramount Global (<a href=\"\/stock\/PARA\">PARA<\/a>)<\/strong>. Speaking with CNBC, Sarandos adopted a &quot;wait-and-see&quot; posture, suggesting that <strong>Netflix<\/strong> is in no rush to join the M&amp;A fray until the current landscape stabilizes.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Global_Macro_RBNZ_and_Wall_Street_Volatility\"><\/span>Global Macro: RBNZ and Wall Street Volatility<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In international markets, the <strong>Reserve Bank of New Zealand (RBNZ)<\/strong> held its first policy meeting under new Governor <strong>Anna Breman<\/strong>. <em>Chatter regarding a potential rate hike is intensifying among analysts as New Zealand&#39;s inflation remains sticky at 3.1%, slightly above the central bank&#39;s target band.<\/em><\/p>\n<p>Meanwhile, <strong>Wall Street<\/strong> remains in a state of high-tension volatility. While the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a><\/strong> has managed to hold key technical support levels, investors are increasingly &quot;whipsawed&quot; by the dual forces of <strong>AI-driven growth potential<\/strong> and the <strong>disruption risks<\/strong> posed by rapidly evolving technology and shifting trade policies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Fitch Ratings warns that U.S. deficits will remain elevated, citing a lack of political appetite for fiscal consolidation [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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