Wall Street finished marginally higher on Tuesday, February 17, with financial stocks leading modest gains while software names continued to face pressure amid concerns over artificial intelligence disruption. The S&P 500 rose 0.1% to 6,843.22, the Nasdaq Composite added 0.14% to 22,578.38, and the Dow Jones Industrial Average climbed 0.07% to 49,533.19.

Software stocks were the primary drag on the session, with the iShares Expanded Tech-Software Sector ETF (IGV) falling more than 2%, bringing its year-to-date loss to roughly 23%. Companies like ServiceNow, Autodesk, Palo Alto Networks, Salesforce, and Oracle saw declines between 1% and 4% as investors weighed AI-driven disruption and its potential impact on traditional subscription models. Analysts highlighted that companies lacking a strong moat could see business deterioration, while those with robust structures may emerge as long-term winners.

Investors rotated into financials amid the software slump. Citigroup shares rose 2.6% and JPMorgan gained over 1%, helping to support the broader market. Strategists noted that AI innovation is raising questions about terminal valuations across sectors, and traders remain divided over whether heavy AI spending will yield near-term returns or disrupt economic segments.

In other markets, Bitcoin hovered near $67,500, extending February’s weakness, while gold dipped below $4,900 an ounce on profit-taking. Looking ahead, investors are focused on the Federal Reserve’s January meeting minutes due Wednesday and the personal consumption expenditure (PCE) inflation report on Friday, which could provide direction for interest rates. Meanwhile, a Bank of America survey showed investors holding their largest equity overweight since December 2024, a contrarian signal that some strategists interpret as a potential “sell” warning.