Friday, February 13, 2026
DJIA
49,500.93
+49 (+0.10%)
S&P 500
6,836.17
+3 (+0.05%)
NASDAQ
22,546.67
-49 (-0.22%)
AI disruption fears spread beyond software; CPI falls to 2.4% but stocks post second straight weekly loss
U.S. stocks ended a turbulent week nearly flat Friday as cooler inflation failed to revive risk appetite amid spreading AI fears. Dow up 0.10% to 49,500.93, S&P 500 added 0.05% to 6,836.17, Nasdaq fell 0.22% to 22,546.67. For the week, S&P 500 dropped 1.4%, Dow fell 1.2%, and Nasdaq tumbled 2.1%—second straight weekly decline. Dow fell 615 points below the 50,000 level crossed just last Friday.
AI disruption fears spread beyond software. Financials led Thursday’s 1.6% S&P selloff: Morgan Stanley -4.9%, Charles Schwab -10.8% for week on wealth management concerns. Logistics and real estate joined: C.H. Robinson -14.5% Thursday, CBRE -8.8%, Workday -11% for week. Jobs revisions erased 400K gains from 2025—economy added just 181K all year (vs. 1.5M in 2024), weakest non-recession year since 2003.
Market outlook: CPI at 2.4% YoY (down from 2.7%), below 2.5% consensus. Core CPI 2.5% (lowest since April 2021). Markets price 65bp Fed cuts in 2026. Applied Materials +8.1%, Arista +4.8% on earnings; Salesforce, Oracle up 2-3% as software stabilized. Precious metals whipsawed: Russia reportedly floated proposal to re-embrace dollar (Bloomberg), sending silver crashing from $85 to $74 intraday Thursday before Friday recovery to $78.91 (+5.5%). Gold rallied to $5,026 (+4.2% week). Russell 2000 +7.5% YTD, international +7% vs. flat U.S.—rotation continues. 10-year yield fell 16bp to 4.05%. Next week: President’s Day Monday, then focus on whether AI fears overdone.
WEEKLY PERFORMANCE
| Index | Close | Weekly %Chg |
|---|---|---|
| Dow Industrials | 49,500.93 | -1.22% |
| S&P 500 | 6,836.17 | -1.39% |
| Nasdaq Comp | 22,546.67 | -2.10% |
| Russell 2000 | 2,577.65 | ±0.00% |
TREASURY YIELDS
| Maturity | Yield | Weekly Chg (bp) |
|---|---|---|
| 2-Year | 3.42% | -6 |
| 10-Year | 4.05% | -16 |
| 30-Year | 4.71% | -11 |
COMMODITIES
| Asset | Friday Close | Week Change |
|---|---|---|
| Gold (spot, oz) | $5,026 | +4.2% |
| Silver (spot, oz) | $78.91 | +5.5% |
| Bitcoin | $68,200 | -2.4% |
WEEKLY MOVERS
| Stock | Week % Change |
|---|---|
| Applied Materials (AMAT) | +8.1% |
| Arista Networks (ANET) | +4.8% |
| Salesforce (CRM) | +2.3% |
| C.H. Robinson (CHRW) | -14.5% |
| Charles Schwab (SCHW) | -10.8% |
WEEK AHEAD
- Markets Closed Monday: President’s Day holiday. Trading resumes Tuesday for shortened four-day week.
- PCE Inflation: Fed’s preferred inflation gauge (December) due next week. After CPI at 2.4%, watching if PCE confirms cooling trend.
- AI Disruption Debate: After financials, logistics, and real estate sold off, markets assessing if fears are overdone. Which sectors next?
- Earnings Continue: Final reports from Q4 season. Focus on guidance and commentary about AI’s impact on business models.
TERM OF THE WEEK
Sector Rotation: The movement of investment capital from one industry sector to another as investors seek better returns or safer havens. This week showcased dramatic sector rotation driven by AI disruption fears spreading beyond software. Technology (XLK) fell 2.6% Thursday and Financials (XLF) dropped 5% for the week, while defensive sectors rallied: Utilities (XLU) gained 1.5%, Consumer Staples (XLP) rose 0.9%. The rotation extended internationally—U.S. stocks are down while international developed markets and Russell 2000 small caps are each up 7.5% YTD. Treasury yields plunged 16bp (10-year to 4.05%) as investors fled equities for safety. Classic sector rotation occurs when investors anticipate economic changes, but this week’s rotation was fear-driven, with capital fleeing any sector perceived vulnerable to AI disruption (wealth management, logistics, real estate) toward “old economy” sectors with physical assets and established competitive moats.
