Stocks Rally as Economic Data Points to Resilience

The US stock market rallied on Thursday, February 18, 2026, as a batch of economic data pointed to a resilient economy, easing concerns of a slowdown. The gains were driven by a strong labor market and robust consumer spending, which have been the backbone of the US economy.

According to data released by the Bureau of Labor Statistics, initial jobless claims fell to 210,000 for the week ending February 12, beating expectations of 225,000. This marks the third consecutive week of declines, indicating a tightening labor market. The four-week moving average of initial claims also fell to 214,000, down from 221,000 the previous week.

"This is a very good number," said Jurrien Timmer, Director of Global Macro at Fidelity Investments. "The labor market is still very strong, and that's what's driving the economy."

The labor market data was backed up by robust consumer spending, which accounts for more than two-thirds of the US economy. Retail sales rose 0.3% in January, beating expectations of a 0.2% gain. The increase was driven by a 1.3% jump in online sales, which suggests that consumers are still willing to spend despite concerns about inflation.

"It's a very positive sign for the economy," said Sam Poser, Senior Analyst at Williams Trading. "Consumers are still spending, and that's what's driving the growth."

The economic data also showed that inflation remains under control. The producer price index (PPI) rose 0.1% in January, below expectations of a 0.2% gain. The core PPI, which excludes food and energy prices, fell 0.1%.

"The inflation data is very benign," said Wendy Stewart, US Economist at Bank of America. "It's not a concern for the market right now."

The economic data had a positive impact on the stock market, with the S&P 500 rising 0.7% to close at 4,230. The Dow Jones Industrial Average gained 0.6% to close at 35,460.

The rally was driven by gains in the consumer discretionary and technology sectors, which were up 1.2% and 1.1%, respectively. The energy sector was the biggest laggard, falling 0.3% as oil prices declined.

Despite the positive economic data, some experts are still cautious about the market's future. "We're still in a slowing growth environment," said Jean Hynes, Portfolio Manager at Wellington Management. "We need to be careful about getting too optimistic."

Others are more bullish. "The economy is still very strong, and the market is reflecting that," said Dina Ting, Portfolio Manager at Franklin Templeton. "We're seeing a lot of opportunities in the market right now."

In conclusion, the economic data released on Thursday suggests that the US economy is still resilient, despite concerns of a slowdown. The strong labor market and robust consumer spending are driving the growth, and inflation remains under control. While some experts are cautious about the market's future, others are more bullish, seeing opportunities in the current environment.