Business
Opportunities in smallcap and midcap stocks increasing: WhiteOak’s Trupti Agrawal
Edited excerpts from a chat with the senior fund manager:
The market has been stuck in a consolidation phase for the last 1.5 years. Now that earnings downgrades have slowed and US trade deal uncertainty is gone, what is holding the market back?
Over the past few weeks, India has secured a trade agreement with two of its largest trading partners, ie EU and US, which have a combined share of ~37% in India’s total goods exports. Overall, it is anticipated that the trade deals would be particularly beneficial in expanding market access and improving export competitiveness for India.
Secondly, incoming data indicates that the growth momentum seen in 3QFY26 has sustained into 4Q as well. Overall, the growth outlook remains constructive, with the RBI raising the FY2026 GDP forecast to 7.4% and the Economic Survey projecting 7.4% in FY2026 and 6.8–7.2% in FY2027, supported by domestic demand and ongoing reforms.
While we do not take top-down views on the market, the recent correction means that, on a relative basis, Indian equity markets are trading at or close to 10 year averages while the relative premium to EMs have narrowed to 45%, below the long term historical range, and far off its highs of 90% observed between 2022-2024. Over the past five years, India has recorded the highest annualised earnings growth among peers at ~10%, and is expected to sustain a healthy 14–15% growth trajectory going forward, although admittedly it is not significantly ahead of other major EMs over the next couple of years.
Although the macro implications of technological evolution remain uncertain, India’s diversified sectoral composition and relatively lower market volatility support a more stable and resilient earnings cycle.
Consumption was touted as a big theme after GST cuts were introduced before Diwali. Since then auto appears to be the only winner in the consumption cycle. Are you disappointed with the impact that GST is having on overall consumption in India?
Consumer-facing sectors saw a sequential improvement in earnings this quarter, although the recovery remains somewhat mixed across categories. In autos, revenue growth was supported by festive demand and GST rationalization, along with recovery in CVs. Consumer staples delivered sequentially a decent set of numbers, led by rural growth. Premiumization trends continue to stay strong and emerging channels such as e-commerce and quick commerce are continuing to scale well. Jewelry companies reported stellar performance at the back of rising gold prices which is a both headwind and tailwind at the same time for the category, coupled with the sustained trend of formalization of the sector in India. There is a view among the relatively smaller ticket discretionary lifestyle consumption category companies that the customers appear to have prioritized purchase of bigger ticket products with higher GST reduction benefits initially, which should change in the coming times aiding demand for their products.
Media and retail sector trends have been largely company- and event-driven with seasonality playing a role in some companies. More importantly, the earnings revision cycle remains uneven — autos are seeing early signs of estimated upgrades, but upward revisions across other consumer segments have been relatively muted.
Smaller sized private and PSU banks have reported a double-digit gold loan mix. Is this a healthy trend for their balance sheets?
Gold loans are regarded as among the lower risk retail products as (1) they are collateralized, (2) recovery is relatively quicker via auction and (3) borrower behavior tends to be disciplined and guided by emotional and sentimental value attached to their pledged items. Recent asset quality trends with CRIF data showing PAR >90 days below 1% across the system is far better than unsecured retail or MFI loans.
That said, we believe that any outsized exposure to a single segment increases lender risk, particularly if collateral values are affected during periods of volatility, as can occur with precious metals. While most private and PSU banks have robust risk management frameworks in place to mitigate such risks through prudent LTVs and monitoring mechanisms, concentration risk remains an important consideration.
As with any product, gold loans can be attractive from a margin standpoint, provided exposures remain well-calibrated and contained within a diversified portfolio framework.
Credit growth in many PSU banks has been higher than their private peers in Q3. Are PSU bank stocks looking more attractive? Are valuations good enough to buy?
Yes, recent asset quality trends and growth at large PSU banks have been comparable to those of large private sector peers. However, with any sub-segment, rather than taking a top-down view, we prefer to identify bottom-up opportunities.
Historically, the valuation gap between PSU and private banks has reflected differences in RoAs, as well as governance and capital allocation constraints. Also, it should not be missed that over time well-run private sector banks have gained market share when compared to PSU banks.
On an aggregate basis, the banking sector offers opportunities across the market-cap spectrum, and valuations do not appear stretched, with earnings expectations in the mid-teens.
Which sectors appear structurally well-positioned over the next three to five years, and why?
We are very stock selection driven as a house and do not make top down thematic or sectoral calls, as those are fraught with risk without adding returns in our view. Our sectoral over weights and underweights are an outcome of bottom-up stock picking opportunities at any given point in time, rather than an input to our portfolio construction. For the all-cap portfolio, from a bottom-up perspective, there are certain sectors where we consistently find more opportunities. Currently we see more promising prospects within private sector financials, consumer discretionary, communication services, healthcare, REITs and Invits. While not generalising, it is certain sub-segments and individual companies within them that find favour with the team.
Do you think that the sell-off in small caps we saw in last 1.5 years is done and that we will see gradual recovery in next 2 quarters?
Since its peak in Sep 2024, small caps have corrected meaningfully due to a combination of tighter liquidity, higher interest rates, and earnings downgrades. Much of this adjustment appears to have already played out and recent earnings trends within the small and mid-caps have been ahead of large caps. Having said that, a broad-based recovery in share prices usually requires sustained improvement in earnings momentum, cash flows, and risk appetite, which tends to lag market corrections, especially after prolonged periods of adjustment.
Historically, we find greater number of opportunities in the mid and small market cap and off-benchmark companies. We believe these segments of the market are typically less well researched and hence more inefficient, thereby providing strong alpha generation potential.
Although we tend to be bottom up focussed, looking ahead over the next couple of quarters, a gradual and selective recovery is a reasonable base case rather than a sharp rebound.
What stood out for you in the Q3 earnings season? Are you more hopeful of broad-based growth than before?
Earnings growth in Q3 has been stronger than recent quarters, with aggregate Nifty-500 Index earnings at 14%, with SMIDs outpacing large cap earnings. We note healthy earnings growth delivered by autos, capital goods and utilities, while consumption was gradual but uneven.
However, we would like to see a few more quarters of consistent earnings trends before gaining greater confidence in a sustained recovery in the earnings trajectory.
Business
Israel Targets Khamenei and Top Iranian Leaders in Strikes Aimed at Regime Change: Explosions Rock Tehran
Israel, with U.S. support, launched a series of airstrikes early Saturday targeting Iran’s Supreme Leader Ayatollah Ali Khamenei and other top political and military figures in a bold operation aimed at dismantling the Islamic Republic’s regime, Israeli officials said. Explosions echoed across Tehran and other key sites, marking a dramatic escalation in the longstanding conflict that could reshape the Middle East.
The strikes, described by Israeli Defense Minister Israel Katz as a “pre-emptive attack” after months of joint planning with Washington, focused on Khamenei’s downtown Tehran compound, President Masoud Pezeshkian’s residence and headquarters of the Islamic Revolutionary Guard Corps (IRGC). Satellite imagery from Airbus captured multiple buildings destroyed amid rising smoke at Khamenei’s fortified site, with assessments indicating a direct hit. Iranian state media reported blasts near an elementary school, claiming civilian casualties, though independent verification was unavailable due to communication disruptions.

AFP
A senior Israeli official told Reuters that the entire Iranian regime was targeted, including Khamenei, Pezeshkian and IRGC commanders like Mohammad Pakpour. Channel 12 in Israel reported a high likelihood that Ali Shamkhani, Khamenei’s advisor overseeing the nuclear program, was eliminated in the strikes. Other potential targets included Ali Larijani, secretary of Iran’s Supreme National Security Council, and armed forces Chief of Staff Sayyid Abdolrahim Mousavi.
Israeli Prime Minister Benjamin Netanyahu, in a televised address, framed the operation as essential to “remove the existential threat posed by the terrorist regime in Iran” and empower the Iranian people to overthrow their leaders. “The time has come for all sections of the people in Iran to topple the Ayatollah regime,” he said, emphasizing strikes on nuclear facilities in Isfahan, Qom, Kermanshah and Karaj.
U.S. President Donald Trump confirmed American involvement in a video posted to Truth Social, announcing “major combat operations” to destroy Iran’s ballistic missile and nuclear programs. “Our objective is to defend the American people by eliminating threats from the Iranian regime,” Trump stated, urging Iranians: “The hour of your freedom is at hand. Take over your government.” A U.S. official, speaking anonymously, said the strikes involved over 500 aircraft and were expected to span several days, focusing on military targets but with clear regime-change intent.
Iranian officials denounced the assault as “barbaric aggression.” Military spokesman Amir Hatami promised a “decisive response,” and the IRGC launched a “first wave” of ballistic missiles and drones targeting Tel Aviv, northern Israel and U.S. bases in Iraq, Syria, the UAE, Bahrain, Qatar, Kuwait and Saudi Arabia. One civilian in northern Israel was injured by shrapnel, and a fatality was reported in Abu Dhabi from debris. Explosions near the U.S. Navy’s Fifth Fleet headquarters in Manama, Bahrain, prompted air raid sirens across the Gulf.
Khamenei’s whereabouts remain unknown. Reports indicate the 86-year-old leader was evacuated to a secure location before the strikes, with Iranian media claiming he and Pezeshkian are safe. Tehran denied Pakpour’s death, asserting senior officials are in “perfect health.”
The operation, dubbed “Operation Epic Fury” by some U.S. sources, follows a 12-day air war in June 2025 and stalled nuclear negotiations. Tensions escalated amid Iran’s suppression of domestic protests, with reports of thousands killed, and its support for proxies like Hezbollah and Hamas. Khamenei had warned Israel of “severe punishment” Friday, accusing it of striking residential areas.
International reactions were swift. Russia and China condemned the strikes as “illegal aggression,” while the U.N. Security Council scheduled an emergency meeting. European leaders urged restraint, and Gulf states like the UAE reserved the right to respond to Iranian missiles. In the U.S., congressional leaders received briefings, with bipartisan support emerging amid calls for caution.
Oil prices surged 15% on fears of Strait of Hormuz disruptions, and global stocks plummeted. Airspaces closed across the region, grounding flights and stranding travelers.
Humanitarian concerns mounted. Amnesty International demanded civilian protections, warning of risks in urban areas. The exiled Iranian crown prince called for protests, labeling it a “moment of destiny.”
Social media captured jubilation among some Iranians and diaspora, with chants of “freedom” in Tehran videos. Analysts like Aaron David Miller of the Carnegie Endowment predicted potential full-scale war, noting regime-change ambitions raise stakes.
As waves of attacks continue, the region braces for retaliation. Trump and Netanyahu plan further briefings, while Iran’s IRGC mobilizes reserves. The strikes thrust the Middle East into uncharted territory, with global implications for security, energy and alliances.
Business
Over 651,000 Bottled Water Units Recalled Due to ‘Insanitary Conditions’ in Production, FDA Says
More than 651,000 bottles of Valley Springs Artesian Gold bottled water have been recalled after the U.S. Food and Drug Administration determined they were produced under “insanitary conditions,” raising potential health concerns for consumers.

Valley Springs Artesian Gold, LLC, a Wisconsin-based bottler, voluntarily initiated the recall on February 6, 2026, according to an FDA enforcement report. The agency classified the action as Class II on February 26, indicating that use of or exposure to the product may cause temporary or medically reversible adverse health consequences, or the probability of serious adverse health effects is remote.
The recall affects approximately 651,148 units of bottled water sold under the Valley Springs brand. Specific products include one-gallon and multi-gallon jugs, though exact container sizes and UPC codes vary across affected lots. The FDA’s announcement did not detail the precise nature of the insanitary conditions, such as contamination sources, facility hygiene issues or specific pathogens, but emphasized that the water was bottled in an environment failing to meet sanitary standards.
No illnesses have been reported in connection with the recall, based on available information from the FDA and company statements. Consumers who purchased Valley Springs water are urged to check their products and discard or return them for a full refund. The recalled items were distributed primarily in limited regions, though nationwide availability through retail chains or wholesalers cannot be ruled out.
The FDA’s recall database entry lists the action under Event ID 98410, accessible via the agency’s Industry Recall Enforcement Reports system. Affected products were packaged in plastic jugs, with some bearing specific UPCs such as 0 31193-00601 2 for certain one-gallon sizes, according to supplemental reports. Quantities include large volumes: one entry notes 263,440 units of a particular size.
Class II recalls typically involve situations where health risks are low but warrant removal from the market. In this case, potential issues could stem from microbial contamination, chemical residues or foreign materials introduced during bottling due to inadequate sanitation protocols. Bottled water must comply with strict FDA regulations under the Federal Food, Drug, and Cosmetic Act, including current good manufacturing practices that mandate clean facilities, proper equipment sterilization and quality control testing.
Valley Springs Artesian Gold sources its water from artesian wells, marketing it as naturally filtered and pure. The company has not issued a public statement detailing corrective actions, but the voluntary recall suggests cooperation with regulators to address the violation promptly. The FDA continues to monitor the situation and may require additional inspections or testing before production resumes.
Consumers with questions can contact the FDA’s consumer complaint coordinators or the company directly, though specific contact information was not immediately detailed in the enforcement notice. The agency advises checking lot codes and expiration dates on bottles, as only certain production runs are affected.
This recall highlights ongoing challenges in the bottled water industry, where occasional lapses in sanitation can lead to large-scale actions. Similar incidents in recent years have involved foreign substances, bacterial contamination or labeling errors, prompting heightened scrutiny of production facilities.
Experts recommend that households review pantry stocks and refrigerator contents for recalled products. If consumed, most individuals are unlikely to experience severe effects given the Class II designation, but those with compromised immune systems should exercise caution.
The FDA encourages reporting any adverse events related to the product through its MedWatch program. As investigations continue, updates may appear on the agency’s recalls, market withdrawals and safety alerts page.
No widespread distribution beyond certain states has been confirmed, but vigilance is advised nationwide. Retailers that carried Valley Springs products are participating in the recall by removing items from shelves and notifying customers.
The incident underscores the importance of regulatory oversight in ensuring food and beverage safety. Bottled water, often perceived as a safe alternative to tap, must meet rigorous standards to prevent such issues.
As of February 28, 2026, the recall remains active with no reported expansions or additional affected brands. Consumers should stay informed through official FDA channels for any developments.
Business
Kevin O’Leary throws resumes ‘in garbage’ when parents join interviews
O’Leary Ventures Chairman Kevin O’Leary joins ‘Varney & Co.’ to weigh in on the fate of the tariff refunds as well as Gen Z bring their parents to job interviews.
A growing number of hiring managers say that they are seeing a surprising new trend from Gen Z applicants: bringing a parent into the job interview process, sometimes even onto Zoom calls.
“Shark Tank” star Kevin O’Leary joined FOX Business’ Stuart Varney on ‘Varney & Co.‘ to weigh in on the practice and what it signals to employers.
‘The Big Money Show’ discusses the growing trend of young adults getting financial help from their parents.
For O’Leary, the issue isn’t generational stereotypes, it’s about independence. In today’s competitive labor market, he argues, employers are looking for candidates who can think, decide and execute on their own. When a parent enters the room, he says, that independence immediately comes into question.
“First question I’d have to the son or daughter, I’d say, do you want me to hire your mother or you? What’s she doing here?” O’Leary said, “That resume goes right into the garbage in one of my operations.”
‘The Big Money Show’ panel reacts to new data showing Gen Z hiring has collapsed while older workers stay in the workforce longer.
He said the situation recently happened to him during a virtual interview.
“It happened to me on a Zoom call, and I just said, this isn’t going to work… Your mom is not gonna be part of this discussion,” he said.
LARRY KUDLOW: WHY ARE GEN Z-ERS SO DOUR, DEPRESSED, AND UNEMPLOYED?
Beyond optics, O’Leary views the move as a warning sign for employers evaluating risk.
“It means you can’t do this on your own… It’s a horrific signal,” O’Leary said, calling it “a really, really bad idea.”

“Shark Tank” star Kevin O’Leary speaking during hearing in Washington, D.C. (Andrew Harnik/Getty Images / Getty Images)
Business
Nifty tests support zone amid corrective market phase; cautious week seen ahead
The broader technical structure remains corrective within a larger uptrend. On the weekly chart, Nifty continues to hover just above its 50-week moving average (25,047), while staying well above the 100-week (24,422) and 200-week (21,571) averages, preserving the long-term bullish structure.
ETMarkets.comHowever, the index is trading below the 20- week average (25,756) and near the lower Bollinger Band (25,065), indicating shortterm weakness. The price action over the past several weeks resembles a mild descending consolidation within a broader rising structure, suggesting a loss of upside momentum. A sustained move above 25,800 would be required to negate the present short-term weakness and open the door for a directional upmove. On the downside, a decisive violation of the 25,000–24,950 zone could trigger incremental corrective pressure toward lower supports.With Tuesday, March 03, being a trading holiday on account of Holi, the truncated week may begin on a cautious note amid prevailing softness. Immediate resistance levels are seen at 25,350 and 25,550. Key supports are placed at 25,050 and 24,700.
The weekly RSI stands at 46.27; it remains neutral but tilted lower and does not show any visible bullish or bearish divergence against price. The weekly MACD remains below its signal line but is in positive territory. The index has formed a relatively widebodied bearish candle on the weekly chart, reflecting distribution at higher levels.
From a pattern perspective, the Nifty appears to be undergoing a time-wise consolidation after a prolonged upmove. The index is testing the confluence of the lower Bollinger Band and the 50-week moving average, a zone that could offer intermediate support. Failure to hold this band could lead to a deeper retracement toward the 100- week average. The broader higher-top–higher-bottom structure remains intact on the long-term chart, but near-term price behavior suggests a pause with corrective bias but not any structural damage on the technical front at present.
In the coming truncated week, a cautious and selective approach would be prudent. Traders should avoid aggressive fresh longs until the index reclaims levels above 25,800 with strength. At the same time, any breach of 25,000 must be monitored closely for follow-through weakness. Protecting existing gains, maintaining tight stop-losses, and focusing on stock-specific opportunities with relative strength will be essential. The most effective approach for the week would be to stay measured, nimble, and responsive to key levels rather than anticipating a directional move prematurely.
In our look at Relative Rotation Graphs®, we compared various sectors against the CNX500 (NIFTY 500 Index), representing over 95% of the free-float market cap of allthe listed stocks.
ETMarkets.comRelative Rotation Graphs (RRG) show that the Nifty Energy Index and the Infrastructure Index have rolled inside the leading quadrant. Along with this, the Nifty Financial Services, PSE, Nifty Bank, PSU Bank, and the Nifty Metal Index are also inside the leading quadrant. This group is expected to collectively outperform the broader Nifty 500 index.
ETMarkets.comThe Nifty Services Sector Index has rolled inside the weakening quadrant. The Midcap 100, Auto, and IT Indices are also within this quadrant. These groups may see individual stock-specific moves; however, relative performance may slow.
While the Nifty Realty Index continues to languish inside the lagging quadrant, the FMCG Index is showing mild improvement in its relative momentum against the broader market while staying inside the lagging quadrant.
The Nifty Pharma Index has rolled back inside the improving quadrant. The Nifty Media Index is also inside the improving quadrant.
Important Note: RRG™ charts show the relative strength and momentum of a group of stocks. In the above Chart, they show relative performance against NIFTY500 Index (Broader Markets) and should not be used directly as buy or sell signals.
(The author Milan Vaishnav CMT, MSTA is Consulting Technical Analyst)
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Business
Europe lags U.S. in AI investment but stands to gain on productivity, UBS says

Europe lags U.S. in AI investment but stands to gain on productivity, UBS says
Business
Bottom-up stock opportunities emerge as markets consolidate post-correction: Sudip Bandyopadhyay
According to Bandyopadhyay, the sharp market correction seen over recent months is a natural adjustment after the late 2024 highs, and fundamentals are gradually catching up with valuations.
In an exclusive interview with ET Now, he noted that corporate performance is improving, Q4 results are expected to outperform Q3, and foreign institutional investor (FII) inflows have begun to pick up, indicating a positive trajectory for Indian capital markets.
On sectoral opportunities, Bandyopadhyay expressed strong conviction in the chemicals and agrochemicals space, especially specialty chemicals, which have been underperforming for the past two years.
“One area which I have been very bullish has been chemicals, agrochemicals, speciality chemicals. This was a completely bombed out sector and for last two years they have disappointed investors. But now the green shoots are clearly visible,” he said.
He cited the “China plus one” strategy, ongoing trade agreements with the US and EU, and growing exports as key tailwinds. UPL, a leading agrochemical company, was highlighted as a strong buy following its business restructuring, offering a focused growth path and attractive valuations. Aarti Industries, with its ongoing expansion plans, was also recommended as part of a long-term portfolio strategy.
The expert also pointed to opportunities in the capex and defense sectors. He emphasized companies like Larsen & Toubro (L&T) and Bharat Forge, which are expanding their defense businesses alongside their traditional operations. Rising order wins, strong international business margins, and ongoing capital expenditure make these companies attractive from a long-term perspective.Bandyopadhyay expressed caution on the solar panel sector, particularly Waaree and US-exposed players, noting that while current contracts may remain unaffected, future business faces uncertainty due to recent duty structures. As such, he advised against buying into this space until clarity emerges.
On energy-related public sector units (PSUs), Bandyopadhyay reaffirmed his positive stance.
“We believe there is a long-term positive as far as Indian energy space is concerned. What is happening is this sector has not given good return over the last one, one-and-a-half years and investors are a little frustrated,” he said.
He praised NTPC for its strong operational efficiencies, green energy integration, and forward-backward linkages. Power financiers such as PFC, and medium- to long-term options like IREDA, also present compelling opportunities given the upcoming surge in power capacity and credit demand.
Retail and telecom sectors were not overlooked. Value retail companies operating in tier III and IV locations, with strong footfall growth and expanding profitability, offer attractive long-term growth prospects. In telecom, Bharti Airtel remains fundamentally strong despite recent NBFC-related stock weakness, and Bandyopadhyay reiterated a buy recommendation, emphasizing robust core business metrics and market share gains.
Business
Trump Orders Federal Agencies to Halt Use of Anthropic AI Tools in Escalating Clash Over Military Safeguards
President Donald Trump directed all U.S. federal agencies on February 27, 2026, to immediately cease using artificial intelligence technology developed by Anthropic, escalating a high-profile dispute with the San Francisco-based startup over safeguards on its Claude AI model for military applications.

In a Truth Social post, Trump accused Anthropic of attempting to “strong-arm” the Department of Defense — which he referred to as the Department of War — by imposing restrictions on how its technology could be deployed. “The Leftwing nut jobs at Anthropic have made a DISASTROUS MISTAKE trying to STRONG-ARM the Department of War, and force them to obey their Terms of Service instead of our Constitution,” Trump wrote. “Therefore, I am directing EVERY Federal Agency in the United States Government to IMMEDIATELY CEASE all use of Anthropic’s technology. We don’t need it, we don’t want it, and will not do business with them again!”
Trump specified a six-month phase-out period for agencies, including the Pentagon, where Anthropic’s tools are already integrated into systems. He threatened further action if the company did not cooperate during the transition, including potential civil and criminal consequences.
The directive followed a Pentagon-imposed deadline that expired Friday evening for Anthropic to lift guardrails limiting Claude’s use in fully autonomous weapons or mass surveillance of U.S. citizens. Anthropic CEO Dario Amodei had publicly refused to remove the safeguards, arguing they were essential to prevent misuse that could undermine democratic values.
Shortly after Trump’s announcement, Defense Secretary Pete Hegseth designated Anthropic a “supply-chain risk to national security.” The label, typically applied to foreign adversaries, bars military contractors and suppliers from doing business with the company. The move effectively blacklists Anthropic from future federal defense work and could force vendors to certify non-use of its models.
The General Services Administration, which manages federal procurement, quickly complied by removing Anthropic from its USAi.gov platform and Multiple Award Schedule. GSA Administrator Edward C. announced the agency “stands with the President in rejecting attempts to politicize work dedicated to America’s national security.”
The clash highlights deep tensions between the Trump administration’s push for unrestricted military AI adoption and Silicon Valley’s efforts to impose ethical constraints. Anthropic, founded in 2021 by former OpenAI executives including Amodei, has positioned itself as a safety-focused alternative in the AI race, emphasizing constitutional AI principles to align models with human values.
Federal agencies had increasingly adopted Claude for tasks ranging from intelligence analysis to administrative automation, drawn to its strong performance in reasoning and coding. The ban could disrupt ongoing projects, particularly in defense and intelligence, where unwinding integrations may prove complex and costly.
In a swift counterdevelopment, OpenAI announced late Friday that it had reached an agreement with the Pentagon to supply its AI technology for classified systems. The deal positions OpenAI as a key alternative provider, potentially accelerating its military footprint amid the vacuum left by Anthropic’s exclusion.
Anthropic has not issued a formal response to the order as of February 28, but sources close to the company indicated it would challenge the designation legally, arguing the restrictions were narrowly tailored to prevent harmful applications while complying with existing laws. Industry observers noted the unprecedented nature of blacklisting a U.S.-based AI firm over usage terms.
Silicon Valley reactions split along ideological lines. Some leaders rallied behind Anthropic, praising its principled stance on AI safety. Others criticized the move as government overreach that could chill innovation and deter companies from pursuing defense contracts. Posts on X and other platforms reflected broader debate over balancing national security with ethical AI governance.
The administration framed the action as essential to ensuring the U.S. military retains full operational flexibility. Trump emphasized that no private company should dictate how the armed forces employ lawful tools. Supporters, including some Republican lawmakers, echoed the sentiment, viewing Anthropic’s safeguards as potential impediments in strategic competition with adversaries like China.
Critics, including civil liberties groups and some Democrats, expressed concern that removing guardrails could enable unchecked surveillance or autonomous lethal systems. They urged congressional oversight of the designation process and called for transparent guidelines on military AI use.
The order arrives amid broader Trump administration efforts to reshape federal technology policy, including accelerated AI adoption for government efficiency while prioritizing American dominance in the field. It also reflects ongoing friction with tech firms perceived as aligned with progressive values.
Anthropic’s valuation, once exceeding $60 billion, faces uncertainty with the loss of federal business, though the company maintains strong commercial and enterprise customers. Shares in related AI firms showed mixed movements in after-hours trading, with some analysts predicting a shift toward providers more amenable to defense needs.
As agencies begin the phase-out, questions linger about timelines, replacement costs and potential litigation. The episode underscores the growing intersection of AI ethics, national security and executive power in an era of rapid technological advancement.
Business
Sam Altman announces OpenAI deal with Department of War for AI deployment
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OpenAI CEO Sam Altman announced Friday that his company reached an agreement with the Department of War to deploy its artificial intelligence models on its classified network, just hours after President Donald Trump ordered federal agencies to phase out rival Anthropic.
Altman said in a post on X that he had been in talks with the Pentagon, which “displayed a deep respect for safety and a desire to partner to achieve the best possible outcome.”
“AI safety and wide distribution of benefits are the core of our mission,” he said. “Two of our most important safety principles are prohibitions on domestic mass surveillance and human responsibility for the use of force, including for autonomous weapon systems. The DoW agrees with these principles, reflects them in law and policy, and we put them into our agreement.”
The deal came after Trump directed every federal agency to stop using Anthropic technology, escalating a standoff over how artificial intelligence should be used in military operations.
OPENAI’S $110B FUNDING ROUND DRAWS INVESTMENT FROM AMAZON, NVIDIA, SOFTBANK

OpenAI CEO Sam Altman announced an agreement with the Department of War to deploy the company’s AI models on classified military networks. (Nathan Laine/Bloomberg via Getty Images / Getty Images)
In a Truth Social post, Trump said agencies, including the Department of War, would have a six-month phase-out period.
“Anthropic better get their act together, and be helpful during this phase out period, or I will use the Full Power of the Presidency to make them comply, with major civil and criminal consequences to follow,” he wrote.
Secretary of War Pete Hegseth later said he was directing the department to designate Anthropic a “supply-chain risk to National Security.”
“Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic,” he added. “Anthropic will continue to provide the Department of War its services for a period of no more than six months to allow for a seamless transition to a better and more patriotic service.”
JACK DORSEY CUTS NEARLY HALF OF BLOCK WORKFORCE AMID MAJOR AI OVERHAUL

President Donald Trump ordered federal agencies to phase out Anthropic technology as OpenAI secured a Pentagon agreement. (Al Drago/Getty Images / Getty Images)
Anthropic CEO Dario Amodei had refused earlier demands from the Department of War to allow its AI to be used for “all lawful purposes,” citing concerns about “mass domestic surveillance” and “fully autonomous weapons.”
Anthropic told Fox News Digital on Friday that Hegseth’s designation of the company as a supply chain risk “follows months of negotiations that reached an impasse over two exceptions we requested to the lawful use of our AI model, Claude: the mass domestic surveillance of Americans and fully autonomous weapons.”
NVIDIA CEO SAYS ARTIFICIAL INTELLIGENCE BOOM IS JUST GETTING STARTED: ‘AI IS GOING TO BE EVERYWHERE’

The Pentagon moved forward with an OpenAI agreement after designating Anthropic a supply-chain risk. (Anna Moneymaker/Getty Images / Getty Images)
“We have not yet received direct communication from the Department of War or the White House on the status of our negotiations,” the company said.
Anthropic added that it “tried in good faith to reach an agreement with the Department of War,” supporting all lawful national security uses of AI except the two requested exceptions, which it said “have not affected a single government mission to date.”
The company also called the supply chain risk designation an “unprecedented action — one historically reserved for US adversaries, never before publicly applied to an American company.”
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Altman said OpenAI would deploy additional safeguards to ensure its models “behave as they should,” and that the company would operate only on cloud networks.
“We are asking the DoW to offer these same terms to all AI companies, which in our opinion we think everyone should be willing to accept,” Altman continued. “We have expressed our strong desire to see things de-escalate away from legal and governmental actions and towards reasonable agreements.”
FOX Business’ Brie Stimson contributed to this report.
Business
Bitcoin Slides Below $64,000 as Geopolitical Tensions Escalate with U.S.-Israel Strikes on Iran
Bitcoin tumbled below $64,000 on February 28, 2026, extending a sharp weekend sell-off triggered by reports of joint U.S. and Israeli military strikes on Iran. The world’s largest cryptocurrency fell as much as 5% in early trading, reaching lows near $63,000 before paring some losses, amid a broader flight from risk assets.

AFP
As of late February 28 in Asia (early morning UTC), Bitcoin traded around $63,800 to $64,000, down approximately 4% over the past 24 hours according to aggregated data from CoinMarketCap, CoinDesk and Binance. The 24-hour trading volume surged to more than $41 billion, reflecting heightened volatility and liquidations across leveraged positions.
The decline erased much of a brief mid-week rebound that had pushed Bitcoin toward $70,000 earlier in the week. From its all-time high of $126,198 reached in October 2025, the token now sits roughly 49% lower, with year-to-date losses exceeding 20% in calendar 2026.
Analysts attributed the latest drop directly to geopolitical developments. Explosions reported in Tehran and retaliatory Iranian missile launches toward Israel and Gulf states heightened fears of a wider Middle East conflict. Bitcoin, often viewed as a risk-on asset correlated with equities during periods of uncertainty, reacted swiftly alongside declines in U.S. stock futures and other cryptocurrencies like Ether, which fell over 6%.
“This is classic risk-off behavior,” said a senior trader at a major crypto exchange, speaking on condition of anonymity. “When headlines scream war, investors dump anything volatile — crypto gets hit hard first.” Roughly $128 billion evaporated from the total digital asset market cap in the immediate aftermath, per CoinGecko data.
The pullback comes after a turbulent February for Bitcoin. Prices had already weakened from January highs near $85,000 amid deleveraging in overextended positions and broader market caution. A mid-month dip below $63,000 earlier in February marked the lowest since early in the year before a partial recovery.
Despite the downturn, some observers highlighted resilience. Bloomberg Intelligence ETF analyst Eric Balchunas noted that spot Bitcoin ETF investors have shown “diamond hands,” with minimal outflows during the slump. Inflows into products like BlackRock’s IBIT and Fidelity’s FBTC remained steady or positive in recent weeks, suggesting long-term holders are absorbing selling pressure.
Institutional adoption continues to underpin the asset. Corporate treasuries, including MicroStrategy’s ongoing purchases, and growing sovereign interest have provided a floor. However, short-term sentiment remains bearish, with the Crypto Fear & Greed Index hovering in “fear” territory.
Technical levels are in focus. Bitcoin holds support near $62,000 to $63,000, a zone that has acted as a floor in prior corrections. A break below could target $60,000, while resistance sits around $66,000 to $68,000 from recent highs.
Broader crypto market dynamics amplified the move. Altcoins like Solana, XRP and Dogecoin fell 6% or more, with total market capitalization dipping below $2.3 trillion. Liquidations exceeded $500 million in the past day, mostly long positions, per Coinglass.
The geopolitical backdrop overshadowed other factors. Ongoing U.S. tariff discussions and Federal Reserve policy signals had already weighed on risk assets, but the Iran strikes accelerated the exodus. Oil prices spiked over 10%, boosting inflation concerns that could pressure growth-sensitive investments like crypto.
Looking ahead, market participants eye potential catalysts. A de-escalation in the Middle East could spark a relief rally, while prolonged conflict risks further downside. Prediction markets give low odds — around 10% — for Bitcoin reaching $150,000 in 2026, reflecting tempered expectations after the post-2025 euphoria.
Bitcoin’s circulating supply stands near 20 million coins, with the halving cycle from 2024 still influencing scarcity dynamics. Miners continue operations amid higher energy costs, though hash rate remains robust.
Retail and institutional traders alike monitor developments closely. On platforms like X and Reddit, discussions range from “buy the dip” calls to warnings of deeper corrections if global instability persists.
As of February 28, Bitcoin’s market capitalization hovers around $1.28 trillion, maintaining its position as the dominant cryptocurrency. The asset’s correlation with traditional markets has grown since ETF approvals, making it more susceptible to macroeconomic and geopolitical shocks.
While the weekend sell-off marks a painful setback, Bitcoin has historically recovered from sharp drawdowns tied to external events. Whether this episode proves a capitulation low or prelude to further weakness depends on how the Iran situation unfolds and broader risk appetite rebounds.
Investors are advised to stay informed through reliable sources, as volatility remains elevated. The coming days will test Bitcoin’s resilience amid one of the most uncertain periods in recent memory.
Business
All Nintendo Switch 2 Market Can Play Gen 10 Games in 2027
Fans across the globe can breathe a sigh of relief: *Pokémon Winds* and *Pokémon Waves*, the highly anticipated 10th-generation mainline Pokémon games, will launch simultaneously worldwide in 2027 exclusively on the Nintendo Switch 2, with no regional restrictions or country-specific delays, The Pokémon Company confirmed during its Pokémon Day presentation on February 27, 2026.

The announcement, part of the franchise’s 30th anniversary celebrations, dispelled early speculation about staggered rollouts or market exclusions common in some gaming titles. “Developed by Game Freak exclusively for Nintendo Switch 2, these new titles feature an open world to explore,” the official press release stated, emphasizing a “global simultaneous release” without qualifiers. This means players in North America, Europe, Japan, Southeast Asia, Latin America, Australia and beyond — wherever the Switch 2 launches — can dive into the windswept islands and oceanic adventures on day one.
Nintendo’s consistent policy of broad accessibility for Pokémon titles ensures the games will be playable in over 100 countries through official digital and physical channels. Pre-orders are expected to open later in 2026 alongside Switch 2 details, with eShop availability confirming cross-region digital purchases. Unlike mobile spin-offs with geo-locks, mainline Pokémon games have historically launched universally, and executives reiterated this commitment.
The reveal trailer transported viewers to a stunning Southeast Asia-inspired region, blending terraced rice fields akin to the Philippines’ Banaue terraces, Indonesian mangroves and Malaysian cliffside villages. Dynamic weather — fierce winds, crashing waves and tropical storms — shapes exploration, battles and survival mechanics, building on *Scarlet* and *Violet*’s open-world foundation. New starters include Grass-type Browt (Overgrow), Fire-type Pombon (Blaze) and Water-type Gecqua (Torrent), with version-exclusive Pikachu variants adding flair.
A major inclusivity milestone: Brazilian Portuguese joins as an official language, debuting here and expanding reach to over 200 million Portuguese speakers in Brazil and Portugal. “Pokémon is committed to bringing fans even closer to the experience,” the company said, signaling future localization efforts.
Excitement peaked in Southeast Asia, the in-game region’s muse. Filipino fans claimed “Uy, Philippines!!” spotting Palawan-like beaches, while Indonesians hailed the archipelago vibes. Malaysians noted mangrove forests, fueling regional pride. Social media buzzed with #PokemonWindsWaves trending globally, amassing millions of views.
The Switch 2 exclusivity — no original Switch support — underscores Nintendo’s forward push, with the console eyed for a late 2026 debut in major markets like the U.S., Japan, Europe and Asia-Pacific. Analysts predict blockbuster sales, potentially eclipsing *Scarlet/Violet*’s 24 million units, given the franchise’s 480 million lifetime sales.
Leaked “Teraleak” documents from 2024 accurately foresaw the titles, procedural elements and 2027 window, validating fan theories. Game Freak’s Tokyo team leads development, with Nintendo publishing worldwide.
For players in restricted markets like China (via Tencent partnerships) or embargoed nations, gray imports or VPNs may enable access, though official support lags. Nintendo’s eShop requires region-matched accounts, but digital keys transcend borders.
The global rollout contrasts delayed launches in past eras, like *Gold/Silver*’s Japan-first strategy. Modern Pokémon prioritizes parity, boosting esports and competitive play.
As 2027 nears, expect demos, DLC teases and Switch 2 bundles. The Pokémon Company plans more 30th-anniversary reveals, including *Legends: Z-A*.
This universal availability cements Pokémon’s borderless appeal, uniting trainers from Tokyo to São Paulo in Gen 10’s watery wonders.
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