New York, Feb 15, 2026, 13:15 EST — Market is shut.
- The Communication Services Select Sector SPDR Fund (XLC) closed Friday at $114.58, barely budging from its previous level.
- Mega-cap platforms lost ground, though Disney and select telecom stocks provided some balance for the group.
- Focus now shifts to the Fed minutes, with upcoming inflation and growth figures also on traders’ radar later this week.
Communication services names show little sign of picking up speed heading into the week. The sector’s flagship U.S. ETF—Communication Services Select Sector SPDR Fund (XLC)—closed Friday at $114.58, slipping 0.1% from the previous session. Its biggest internet stocks posted declines.
With U.S. markets closed Monday for Presidents Day, traders face a compact four-day week, pushing risk into a tighter window before things pick up again Tuesday. Lighter post-holiday volumes often amplify moves in sectors like communications services, where growth stocks dominate.
Friday’s slightly softer U.S. inflation numbers nudged the S&P 500 into positive territory, but the Nasdaq struggled, slipping as major tech and communications stocks lost ground. Worries about AI-driven upheaval—and the expense of staying competitive—kept pressure on those sectors. “Any whiff of optimism continues to get rejected,” said Michael James, managing director at Rosenblatt Securities. Reuters
Meta Platforms dropped 1.5%, and Alphabet shares were down roughly 1.1%—notable declines given their heavy weight in sector holdings. Verizon and AT&T lost ground as well. On the flip side, Walt Disney climbed about 3%, with T-Mobile advancing over 2%, providing some relief from the drag in internet stocks.
It’s a baked-in tension for XLC. Meta holds close to 20% of the ETF, while Alphabet’s dual share classes are also a big chunk. The rest? Verizon, Comcast, AT&T, T-Mobile, Netflix, Disney—all significant slices.
Advertising-exposed stocks still underperformed. Shares of Pinterest tumbled 21% Friday, hit by a downbeat forecast the company blamed on big U.S. retailers pulling back ad budgets amid tariff worries. “Constrained by legacy monetization models,” said Zephirin Group CEO Lenny Zephirin, pointing to the shifting role of AI in advertising. Reuters
Large platforms face their own set of jitters—mainly, just how much capital they’ll have to sink into AI infrastructure before it makes a clear dent in profits. Investors are zeroed in on spending plans throughout the mega-cap names, a focus that’s been capping rallies even with favorable macro numbers.
Communication services bulls face a key risk if the weekend’s quiet doesn’t last. Any hawkish tilt in policy signals—or fresh signs that tariffs are making companies pull back on ad spending—could put quick pressure on the sector’s priciest names. A pop in yields wouldn’t do them any favors, either.
Coming up first: the Federal Reserve drops minutes from its most recent policy meeting on Wednesday at 2 p.m. ET.
Looking ahead, Friday brings a packed U.S. data slate. The advance read on fourth-quarter GDP drops alongside the Personal Income and Outlays numbers—PCE inflation metrics included—with both reports slated for an 8:30 a.m. ET release on Feb. 20.
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