Good morning.

Markets are in positive territory this morning, but investors realize this could just be the appetizer … as the entrée will come out of the kitchen soon after the market close … upon the earnings report from chipmaker Nvidia.

Why is this so important?

A quick review of the S&P 500 shows Nvidia is around 7.61% of the index … but that’s not all … as we suspect the stock prices of other tech-related companies to also be affected by today’s report.  And with the top 8 S&P companies all being tech-related … adding up the percentages … this group (Nvidia, Apple, Microsoft, Amazon, Google, Meta, Broadcom and Tesla) constitutes around 35% of the entire S&P. Meanwhile, for the tech-heavy Nasdaq just two stocks, Nvidia and Apple, make up over 25% of the index.

Crazy? Yes … but quite important none-the-less.

There is a bit of good news on the consumer front, as The Conference Board indicates consumer confidence rebounded from a decline last month, showing people are a little bit more optimistic than what was reported in January.

It is possible that lower mortgage rates are helping … as the level is the lowest it has been in four years … even as many buyers appear to be walking away from home-purchase contracts at the last minute … which seems contrary to what might be expected based on the mortgage rate improvement and higher consumer comfort.  With the industry entering its peak season of April through June, home sales will be a very important economic indicator over the next few months.

The AI situation on jobs has, so far, been unclear … and those who make projections don’t seem to agree.

I’ve included recent articles which concluded that many jobs will be replaced … which is my own stated Chicken Little concern … but not everyone agrees as Wolf Research economist, Stephanie Roth shared her opinion that AI “could lead to jobs we can’t envision today.”

I agree that AI is exciting … scary, but exciting … and I very much look forward to today’s comments from Nvidia CEO, Jensen Huang, as he helps us glance into what the future might hold.

That about wraps it up for me today as I can now finish an article I was reading claiming that cavemen once lived in the Northeastern part of the U.S.

… and there is evidence the cavemen traveled aimlessly around …

… proving they were meanderthals.

Have a great day,

Joseph G. Witthohn, CFA

Have any questions? Please contact info@teamemerald.com

A Look At The News | February 25, 2026 As of 11:51 AM today … Mortgage rates are the lowest they have been in almost 4 years … but will that equate to a better housing market for homebuyers? (CNBC) https://www.cnbc.com/2026/02/25/mortgage-rates-hit-lowest-level-in-nearly-4-years.html   … maybe not … as the number of sales being cancelled has jumped to a record … though the reason for this remains unclear (Newsweek) https://www.newsweek.com/number-home-sales-falling-through-hits-new-record-11578903   At least Americans are feeling a little more upbeat about things … as consumer confidence numbers moved in a positive direction (FoxBusiness) https://www.foxbusiness.com/economy/consumer-confidence-rebounds-february-americans-grow-less-pessimistic-about-jobs   Private Credit is in the financial news lately and while some are concerned, others are not. This link helps explain what it is (Brookings) https://www.brookings.edu/articles/what-is-private-credit-does-it-pose-financial-stability-risks/   If you’ve been to a supermarket lately you might have noticed that “Protein” seems to be highlighted on many food labels. But is the amount we are ingesting needed? (KCUR) https://www.kcur.org/environment-agriculture/2026-02-23/protein-dietary-guidelines   When it comes to inflation and increases in prices, a noticeable boost (and cause of many complaints) was in electric costs. A supplier showing high profit won’t help moods (WHYY) https://whyy.org/articles/peco-rate-hikes-profits/ The statements above are supplied for educational purposes only. The statements depict the viewpoints and opinion of the author and are not necessarily the views of Emerald Asset Management or its affiliates. The information described herein is taken from sources which are believed to be reliable, but the accuracy and completeness of such information is not guaranteed by us. Emerald Asset Management PA, LLC | 717-556-8900 | 3175 Oregon Pike, Leola, PA 17540 Want to change how you receive these emails? You can unsubscribe from this list. ———————————————————————————- The statements above are supplied for educational purposes only. The statements depict the viewpoints and opinion of the author and are not necessarily the views of Emerald Asset Management or its affiliates. The information described herein is taken from sources which are believed to be reliable, but the accuracy and completeness of such information is not guaranteed by us.