The U.S. Supreme Court upheld a 5th Circuit Court ruling relating to Whole Foods on Tuesday, joining the court in its rebuke of a lower district court’s handling of the case.

Tuesday’s 9-0 opinion, written by Justice Sonia Sotomayor, relates to a lawsuit brought forward in Texas by Sarah and Grant Palmquist. The couple alleged that baby food sold at Whole Foods and manufactured by Hain Celestial Group had harmed their child because it contained heavy metals linked to extensive side effects.

The Palmquists sued both Whole Foods and Hain in Texas court, alleging product liability and negligence claims against Hain, and state-law breach-of-warranty and negligence claims against Whole Foods.

Hain, a company based in Delaware and New York, sought to have the case brought to federal court. That raised a separate issue, however, as both the Palmquists and Whole Foods are based in Texas and the allegations relate to Texas law.

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The Supreme Court ruled that Whole Foods was improperly removed from a case where parents claim baby food harmed their child. (Peter Dazeley/Getty Images)

“Federal courts may exercise diversity jurisdiction only when no adverse party is from the same state, but Whole Foods and the Palmquists are all Texas citizens. As a result, the district court lacked jurisdiction as the case stood upon removal,” the court wrote in its opinion.

Hain sought to move forward by having Whole Foods removed from the case, arguing they shouldn’t have been included in the first place. A district court agreed and ruled in Hain’s favor, dismissing Whole Foods’ involvement.

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Whole Foods will now face a lawsuit in Texas over one of its baby food products. (Noam Galai/Getty Images)

The Palmquists then appealed and the case went to the5th Circuit Court, which rejected the lower court’s ruling, saying Whole Foods was properly joined with Hain in the original lawsuit and the case should have been handled in state court.

The case was then appealed to the Supreme Court, which unanimously upheld the 5th Circuit’s ruling on Tuesday, sending the case back to Texas.

Tuesday’s ruling does not weigh in on the Palmquists’ basic allegations against Whole Foods and Hain, however.

People walk past the U.S. Supreme Court in Washington, D.C. (Mandel Ngan/AFP via Getty Images)

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Their original lawsuit said their child, who was just over 2 years old at the time, “was diagnosed with a range of physical and mental conditions that some doctors attributed to heavy-metal poisoning.”

“In 2021, a subcommittee of the U. S. House of Representatives released a staff report finding that certain baby foods, including Hain’s, contained elevated levels of toxic heavy metals. Following the report’s release, the Palmquists sued both Hain and Whole Foods in Texas state court,” the Supreme Court explained.

The Nasdaq Composite Index has endured choppy trading in February 2026, retreating from recent highs near 23,000 to hover around 22,800 as investors weigh heavy artificial intelligence infrastructure spending against potential economic headwinds, including renewed tariff threats and policy shifts.

As of February 24, 2026, the tech-heavy Nasdaq Composite (^IXIC) traded near 22,808, up modestly intraday after closing at 22,627.27 on February 23—a 1.13% decline of 258.80 points amid broad selling in tech shares. The index opened February around 23,000-23,500 levels based on early-month data, marking a year-to-date dip of roughly 2-3% from 2025’s close, though it remains well above prior-year lows following strong 2025 gains driven by AI enthusiasm.

The pullback reflects a mix of profit-taking after the index’s climb through late 2025 and fresh concerns over AI’s disruptive potential. Tech stocks, which dominate the Nasdaq’s composition of more than 3,000 listings, have faced scrutiny as companies like Meta Platforms, Amazon, and others commit billions to data centers and custom chips. Investors question whether returns on these massive outlays will materialize quickly enough to justify valuations, especially amid signs of softening software demand and competition from nimble AI startups.

Recent sessions highlighted the volatility. On February 23, the index fell 1.13% as policy uncertainty weighed on sentiment—reports of proposed global tariff increases to 15% from prior levels sparked safe-haven flows into assets like gold while pressuring growth-oriented tech names. Cybersecurity and software firms sank after announcements of advanced AI tools capable of detecting vulnerabilities, raising fears of disruption to established players.

The prior day saw a rebound attempt, with the Nasdaq gaining around 0.9% to close near 22,886 on February 20, buoyed by positive developments in AI hardware. Advanced Micro Devices (AMD) surged on a major multi-year deal with Meta Platforms to supply up to 6 gigawatts of Instinct GPUs for AI infrastructure, valued in the tens of billions and including equity warrants. The partnership diversifies Meta’s compute sources beyond Nvidia and underscores ongoing demand for high-performance chips despite broader market jitters.

Broader market context shows mixed performance. The S&P 500 has traded flat to slightly negative year-to-date, while the Dow Jones Industrial Average posted modest gains. The Nasdaq’s tech tilt makes it particularly sensitive to AI narratives—earlier in February, the index dipped amid worries over AI capex sustainability, only to rebound on hardware strength before tariff headlines triggered another leg lower.

Analysts remain divided on the outlook. Some view the dip as a healthy correction in a still-bullish AI-driven cycle, with the Nasdaq trading at elevated but justified multiples given earnings growth potential in semiconductors, cloud computing, and software. Others caution that prolonged uncertainty—geopolitical tensions, potential Fed policy scrutiny, and AI “prove-it” year dynamics—could extend volatility. Consensus points to the index’s resilience tied to hyperscaler investments from Microsoft, Google, Amazon, and Meta, which continue building out capacity amid robust enterprise AI adoption.

Key drivers include ongoing AI infrastructure buildout. Nvidia, a Nasdaq heavyweight, faces its next earnings report soon, with expectations focused on data center revenue momentum. Partnerships like AMD-Meta highlight sector diversification, while quantum computing buzz adds long-term speculation—though experts note the technology remains nascent.

Economic indicators provide mixed signals. Solid retail sales and inflation data earlier in the month supported risk assets, but tariff proposals and international trade frictions have introduced caution. The Nasdaq’s composition—skewed toward innovative, high-growth firms—amplifies sensitivity to these factors.

Looking ahead, February’s final week could bring further swings as investors digest corporate updates and await Q1 guidance from major tech players. Positive AI monetization signs or eased policy concerns might spark a rebound toward 23,000; persistent doubts could test support near 22,500.

The Nasdaq Composite, launched in 1971 and now a benchmark for technology and innovation, continues to reflect the market’s pulse on digital transformation. Despite near-term pressures from AI spending scrutiny and macroeconomic noise, its underlying drivers—AI adoption, semiconductor demand, and cloud expansion—position it for potential recovery as 2026 unfolds.

Investors navigating the index’s volatility emphasize diversification and focus on companies demonstrating clear AI return paths. As the year progresses, the Nasdaq’s performance will likely hinge on whether the AI boom delivers tangible earnings growth or faces a longer “digestion” phase amid elevated expectations.

U.S. stock markets have navigated a turbulent February 2026, with major indices swinging between gains and losses amid persistent investor concerns over artificial intelligence’s disruptive potential, elevated capital spending by tech giants, and renewed tariff threats under the current administration.

As of February 24, 2026, the Dow Jones Industrial Average closed at approximately 48,804 after dropping 822 points—or 1.7%—on February 23, its steepest single-day decline in recent weeks. The S&P 500 fell 1.04% to 6,837.75 that day, putting it in negative territory year-to-date. The Nasdaq Composite declined 1.13% to 22,627.27, reflecting pressure on technology shares that dominate the index.

The pullback accelerated on February 23 as fears of AI-induced industry disruptions combined with policy uncertainty. Cybersecurity and software stocks sold off sharply after reports highlighted advanced AI tools capable of identifying vulnerabilities faster than traditional methods, raising questions about established players’ pricing power and relevance. Broader tariff proposals—potentially raising global duties to 15% or more—added to the caution, prompting safe-haven flows into assets like gold while weighing on growth-oriented equities.

Yet the market showed resilience in subsequent sessions. On February 24, stocks rebounded modestly, with the S&P 500 rising around 0.6% and the Nasdaq 100 climbing 1% as beaten-down software names recovered. Advanced Micro Devices (AMD) surged 7% following Meta Platforms’ announcement of a multi-year, multi-gigawatt partnership to deploy AMD Instinct GPUs for AI infrastructure. The deal, valued in the tens of billions and including equity warrants, underscored continued hyperscaler demand for high-performance computing despite spending scrutiny.

Broader sentiment reflects a rotation away from mega-cap tech dominance that characterized much of 2025. Value stocks, industrials, consumer defensives, and energy sectors have shown relative strength in early 2026, driven by “real economy” tailwinds. Walmart and Costco have contributed significantly to returns, benefiting from cost-conscious consumer spending and AI data center-related demand in supply chains. Energy names like Exxon Mobil have gained from rising oil prices amid geopolitical tensions.

Analysts point to mixed signals. Morningstar’s February outlook noted the U.S. equity market trading at a 5% discount to fair value estimates, with opportunities in late-cycle tech and other areas amid anticipated higher volatility. Some observers describe 2026 as a “prove-it” year for AI investments, where massive capex from Amazon ($200 billion planned), Meta ($115-135 billion), and others must translate into earnings growth to justify valuations.

Nvidia’s fiscal fourth-quarter 2026 earnings, due after the close on February 25, loom as a major catalyst. As the dominant supplier of AI accelerators, Nvidia’s results—particularly data center revenue and forward guidance—could set the tone for the sector and broader market. Wall Street watches closely for signs that hyperscaler spending sustains momentum or faces delays, with Amazon’s recent $200 billion plan crystallizing both tailwind and risk narratives.

Economic data provides a supportive backdrop. Resilient consumer confidence, solid retail sales, and manufacturing indicators have offset some headwinds. However, policy uncertainty—including tariff implementations and potential trade frictions—continues to introduce volatility. The VIX remains relatively subdued despite choppy price action, suggesting complacency or contained risks for now.

Sector rotation stands out as a key theme. Small-cap and emerging market equities led early-year gains in some analyses, with South Korea and Taiwan benefiting from AI-driven chip demand. U.S. small caps and value stocks have outperformed growth in pockets, reversing 2025’s narrow rally led by a handful of mega-caps.

Looking ahead, investors eye upcoming corporate updates and economic releases. Positive Nvidia commentary could spark a rebound toward recent highs; softer guidance might extend the correction. Broader catalysts include Q1 earnings season ramp-up and any policy clarity on trade.

The market’s current phase highlights evolving dynamics in 2026. While AI remains a transformative force, investors increasingly demand evidence of monetization and returns amid heavy infrastructure buildouts. Rotation toward defensive, value, and cyclical areas offers diversification as tech grapples with disruption fears.

Despite near-term pressures, many strategists maintain a constructive longer-term view, citing supportive macro conditions, corporate earnings resilience, and innovation tailwinds. Volatility is expected to persist, but underlying growth drivers in AI, infrastructure, and consumer spending position equities for potential advances as the year progresses.

Craig Revel Horwood campaign and Dubai-inspired biscuits drove revenue to £695m

The confectionery behemoth behind Jammie Dodgers and Wagon Wheels experienced a surge in profits, thanks to a Strictly Come Dancing judge and a “Dubai-inspired” biscuit driving up sales.

The conglomerate, encompassing Burton’s Biscuit Company and Fox’s Biscuits, reported a nine per cent increase in revenue, reaching £695m for the year ending August 2025.

Fox’s Burton’s Companies (FBC) recruited Strictly Come Dancing panellist Craig Revel Horwood to spearhead the relaunch of its Fox’s Chocolatey range.

The group posted a pre-tax profit of £14.3m, marking a turnaround from a pre-tax loss of £6.4m in the year to August 2024, as reported by City AM.

FBC employs over 3,800 individuals in the UK, having generated hundreds of new roles last year. The company makes Jammie Dodgers at its Llantarnam site in South Wales, with other UK hubs including its Thomas Fudge bakery in Dorset, the Fox’s Biscuits plant in Batley, West Yorkshire, and production hubs in Blackpool and Kirkham, Lancashire.

The firm maintained its position as the second-largest sweet biscuit producer in the UK and expanded its market share to 13 per cent.

FBC, also the maker of Party Rings and Maryland Cookies, credited its encouraging performance to “innovation”.

The group was established following a merger between Fox’s and Burton’s, both of which were acquired by Italian chocolate firm Ferrero.

Its “Fox’s Fabulous” campaign featured dance show judge Horwood sporting a chocolate face mask and urging Brits to indulge themselves, using his signature “fabulous” catchphrase.

FBC also launched a “Dubai-style” version of its Fox’s Chocolatey brand, capitalising on the craze for chocolate made with pistachio cream and filo pastry that took the UK by storm last year.

Simon Browne, the group’s chief executive officer, said: “This financial year has been a positive year of growth across all key financial metrics, delivered through maximising the opportunities of consolidating the legacy businesses and a strong new product development pipeline.

“Despite a challenging operating environment, we have successfully outperformed the market and increased our branded sweet biscuit market share.”