Tech stocks surged 8-12% globally in February 2026 after US government shutdown fears cleared, reversing January losses. The Nasdaq Composite recovered to within 3% of record highs as policy stability returned to international markets.
Crypto moved opposite. Bitcoin dropped 22% to $58,400 while Ethereum fell 28% to $2,650 after SEC announced expanded DeFi enforcement. Total crypto market cap declined $740B in three weeks across global exchanges.
The split reflects regulatory exposure. Tech benefits from resolved US budget concerns and infrastructure spending clarity that lifted European and Asian tech sectors. Crypto faces mounting pressure as US regulators target unregistered securities and stablecoin issuers, prompting similar moves in EU and UK markets.
Capital markets stayed robust despite volatility. Companies filed $4.2B in US IPO registrations in January-February, up 15% year-over-year. Private equity deployed $18B across 47 deals, focusing on healthcare and utilities.
Star Equity Holdings shows M&A momentum. The diversified holding company completed its $87M Hudson Global acquisition in August 2025, creating a four-division structure spanning talent solutions, building systems, and energy services. Q3 revenue hit $48M, up 30% year-over-year, though net loss widened to $1.8M.
Chairman Jeffrey Eberwein called shares undervalued after Q3 buybacks. Pro forma adjusted EBITDA reached $3.1M versus $600K in Q3 2024. Hudson Talent Solutions won recognition as the #1 Asia Pacific provider for the 17th consecutive year, spanning operations across Japan, Australia, and Southeast Asia.
Building Solutions posted $21.4M pro forma Q3 revenue versus $13.7M last year, with a $20M backlog. Energy Services generated $3.7M pro forma revenue despite lower global drilling rig counts, targeting natural gas and geothermal growth.
Market strategists expect continued volatility through Q2 as crypto regulation evolves across jurisdictions and central banks adjust rate expectations. Tech leadership depends on sustained US policy clarity. IPO activity may accelerate globally if VIX volatility drops below 15%.
Corporate governance renewals signal investor confidence. Boards are extending strategic mandates and approving buyback programs, treating near-term turbulence as cyclical rather than structural across international markets.