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    US wholesale inventories rose 0.2% in December, matching analysts’ expectations and keeping stock levels steady across industries

    by VT Markets
    /
    Feb 19, 2026
    US wholesale inventories rose by 0.2% in December, matching forecasts. This report covers inventories held by US wholesalers and shows the change from the prior month.

    Wholesale Inventories Match Expectations

    The update did not include any other figures. It also gave no breakdown by sector or category. Because the data came in exactly as expected, it removes a possible market surprise. It supports the view of an economy that is steady, but not speeding up, as we enter the first quarter of 2026. That may mean implied volatility on major indices is a bit high, which can favor strategies designed for range-bound markets. This result also gives the Federal Reserve little reason to shift its data-driven approach, especially after the latest January CPI report showed inflation easing to 2.8%. Markets should not expect sudden rate moves, which can make trades that assume a continued, gradual decline in rate volatility more appealing. Overall, it supports positioning for a calmer market in the weeks ahead. Inventory stability also lines up with January retail sales, which came in slightly below expectations. Together, these signals suggest the consumer is still spending, but with more caution. That could limit near-term upside for corporate earnings. In this setting, aggressive out-of-the-money call buying on broad market ETFs looks like a lower-probability trade.

    Volatility Strategies In A Stable Backdrop

    For context, the large inventory builds in late 2024 came before the economic slowdown in the first half of 2025. By contrast, today’s modest and predictable increase suggests businesses are managing supply chains more efficiently. That lowers the risk of a sudden downturn, which can make long-dated protective puts feel less urgent. With the VIX around 17, strategies that benefit from time decay and lower volatility may fit the current environment. One approach is selling premium on sector ETFs that do not have a clear near-term catalyst for a major breakout. The focus is on continued stability, not a big directional move. Create your live VT Markets account and start trading now.

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