ASX set to slide as Wall Street drifts lower; Oil jumps on US-Iran tensions
Sydney Morning Herald
by Stan ChoeFebruary 19, 2026
AI-Generated Deep Dive Summary
The ASX is poised to decline as Wall Street experiences a downturn on Thursday, with US stock indexes drifting lower and oil prices rising amid heightened concerns over potential US-Iran tensions. The S&P 500 fell by 0.4%, while the Dow Jones dropped 283 points (0.6%) and the Nasdaq composite slid 0.4%. This marks Wall Street's first losing session of the week, following a period of gains. In Australia, futures indicate an opening drop of 52 points (0.6%), despite the ASX gaining 0.9% on Thursday. The Australian dollar was trading at US70.51¢.
The decline in global markets is partly driven by fears of a potential conflict between the United States and Iran, which has pushed oil prices higher. A barrel of benchmark US crude rose 2.6% to $US66.71, while Brent crude added 2.2% to $US71.88. Investors are concerned that a military confrontation could disrupt the global oil supply, further fueling inflation.
In addition to geopolitical tensions, Wall Street's downturn is being influenced by investor sentiment toward AI-driven competition. Companies like Booking Holdings and Carvana have seen their shares fall despite strong quarterly earnings. The fear of AI upending traditional industries has led investors to shy away from such stocks, with Booking losing a quarter of its value this year.
However, not all sectors are struggling. Deere & Company saw a 12.1% jump after reporting higher-than-expected profits, driven by CEO John May's optimism about recovery in construction and small agricultural markets. Similarly, Occidental Petroleum gained 8.2% following its strong earnings report. These gains highlight resilience in certain industries despite broader market uncertainty.
The bond market remains steady as Treasury yields hold relatively unchanged
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Originally published on Sydney Morning Herald on 2/19/2026