Dow Jones Futures Rise, Bitcoin Bounces As Bulls Fight; Amazon Tumbles On This

2026-02-20 04:41:20

Dow Jones futures rose modestly early Friday, along with S&P 500 futures and Nasdaq futures, while bitcoin bounced. Amazon.com (AMZN) tumbled on an earnings miss and huge capital spending plans.

Bloom Energy (BE), Iren (IREN), Monolithic Power Systems (MPWR) and bitcoin treasury play Strategy (MSTR) also reported after Thursday’s close.

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The stock market saw significant, broad losses Thursday, breaking key levels. Google-parent Alphabet (GOOGL) was an early loser on huge spending plans, but the tech titan slashed intraday losses. Bitcoin kept plunging, highlighting the risk-off sentiment. But much of the market held up relatively well.

Google is on Leaderboard, with Bloom Energy stock on the Leaderboard watchlist.

The video embedded in the article reviews Thursday’s market action and analyzes Google stock, Phibro Animal Health (PAHC) and Royal Caribbean (RCL).

Dow Jones Futures Today

Dow Jones futures rose 0.4% vs. fair value, reversing higher from Thursday evening losses. S&P 500 futures climbed 0.4% and Nasdaq 100 futures gained 0.5%. Amazon is a Dow Jones, S&P 500 and Nasdaq giant.

Bitcoin traded around $66,500 after tumbling to almost $60,000 Thursday evening. That’s just regaining a sliver of Thursday’s losses, let alone bitcoin’s massive sell-off in recent days and months.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze leading stocks and the market on IBD Live

Amazon

Amazon earnings slightly missed views but revenue topped, including Amazon Web Services revenue. The e-commerce and cloud-computing giant guided in line for Q1 revenue but lower on operating profit.

Amazon announced plans for $200 billion in capital spending, far above views and jumping Google’s huge target.

That follows stunning (Google), sharply raised (Meta Platforms (META)) and strong (Microsoft (MSFT)) capital spending plans from the other big hyperscalers.

Many AI infrastructure stocks rose Friday in the wake of the latest turbocharged capex plans.

Amazon stock fell solidly in overnight trade. On Thursday, AMZN stock fell 4.4% to 222.69, just below its 200-day line.

Other Earnings

Bloom Energy earnings and revenue easily beat. The fuel-cell maker, which has become an AI energy play, guided sharply higher on 2026. Bloom Energy stock surged in premarket trade. Shares sank 7.3% Thursday after diving nearly 13% on Wednesday, well below a cup-base buy point though well above a double-bottom entry.

Iren reported a much-wider-than-expected Q2 loss while revenue badly missed, mostly on bitcoin. The bitcoin miner that is shifting into data centers fell modestly early Friday after crashing more than 20% at one point overnight.

Strategy reported a much-wider-than-expected loss, founder Michael Saylor expressing confidence in its outlook despite bitcoin’s sell-off. MSTR stock rose strongly in premarket trade. Shares dived 17.1% on Thursday, hitting an 18-month low. The bitcoin treasury play is now underwater on its overall holdings.

Monolithic Power earnings beat with the chipmaker also hiking its dividend. MPWR stock climbed modestly before the open. after rising within a buy zone Thursday.

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Stock Market Rally

The divided market rally turned into a broad decline Thursday, with several intraday rallies quickly fading. The S&P 500 fell below its 50-day line and set a 2026 low. The Nasdaq hits its lowest level since late November. The small-cap Russell 2000 is testing its 50-day/10-week lines.

Bitcoin continued its free fall, undercutting $63,000 intraday. The cryptocurrency dived 13.3% to $63,596.56 at 4 p.m. ET, the lowest level since October 2024 and the worst one-day loss since 2022.

Silver futures fell 9.1%, ending a two-day bounce.

The Dow Jones Industrial Average fell 1.2% in Thursday’s stock market trading, below its 21-day line. The S&P 500 index also lost 1.2%. The Nasdaq composite sank 1.6%. The Russell 2000 tumbled 1.8%.

The Invesco S&P 500 Equal Weight ETF (RSP) fell 0.9%, but after hitting a record high Wednesday.

Google beat earnings views but stunned with huge capital spending and capex plans. Google stock tumbled below the 50-day line near the open but closed down just 0.5% to 333.21, holding in a buy zone. Some AI infrastructure plays rose on Google’s spending but most did not.

Chips found support but software kept tumbling while anything crypto-related continued to melt down.

Travel plays, housing stocks, aerospace/industrial names, discount retailers, regional banks, medicals and consumer staples generally held up, though Eli Lilly (LLY) was a big loser Thursday.

ITT (ITT), Ensign Group (ENSG), Phibro Animal Health (PAHC), McKesson (MCK) staged powerful breakouts on earnings.

U.S. crude oil prices retreated 2.8% to $63.29 a barrel. The 10-year Treasury yield sank seven basis points to 4.21%.

Dow Tops 50,000 As These 3 Stocks Flash Buy Signals; Is AI Trade Reviving?

ETFs

Among growth ETFs, the Innovator IBD 50 ETF (FFTY) sank 3.7%. The iShares Expanded Tech-Software Sector ETF (IGV) plunged 5%. The VanEck Vectors Semiconductor ETF (SMH) dipped 0.25%.

ARK Innovation ETF (ARKK) tumbled 5.2% and ARK Genomics ETF (ARKG) lost 5.9%.

SPDR S&P Metals & Mining ETF (XME) shed 4.9%. U.S. Global Jets ETF (JETS) descended 1.1%. SPDR S&P Homebuilders ETF (XHB) lost a fraction. The Energy Select SPDR ETF (XLE) retreated 1.2% and the Health Care Select Sector SPDR Fund (XLV) declined 0.8%.

The Industrial Select Sector SPDR Fund (XLI) slipped 0.6%. The Financial Select SPDR ETF (XLF) retreated 1.2%. The SPDR S&P Regional Banking ETF (KRE) edged down 0.1%.

Best Growth Stocks To Buy And Watch

What To Do Now

The stock market is divided and volatile. The tech sector is highly dangerous, though some individual names are doing well. Investors have had opportunities in other areas of the market, but the risk of a general sell-off or a rotation back to the tech is very real.

Investors probably should have been doing more selling than buying in recent days, bringing down exposure somewhat.

Futures point to a market rebound Friday, especially some hard-hit areas. But don’t get excited by a decent open or one strong day.

You don’t have to take part in choppy, divided markets. Make sure your capital and mental capital are protected now so you’re ready for the next clear uptrend.

Work on watchlists, focusing on stocks and sectors showing relative strength. Know your exits.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.

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