Live Updates > Live Update Details
2026-02-13 19:08:22
[AI "Whack-a-Mole" Impacts US Stocks, Walmart Earnings and PCE Set the Course] ⑴ As of Thursday's close, the S&P 500 was down slightly by 0.2% this year, but this small change masked the dramatic fluctuations between sectors. Following a plunge in software stocks, market concerns that new AI tools could disrupt multiple industries, including insurance, wealth management, and transportation, are once again impacting the stock market. ⑵ Art Hogan, chief market strategist at Riley Wealth, described the current sentiment as "whack-a-mole," with investors trying to figure out which industries AI will destroy next. Jonathan Krinsky, chief market technical analyst at BTIG, pointed out that the stock price movements between AI winners and losers are becoming extreme, and if the weak side outweighs the strong side, the entire market will become fragile. ⑶ A rotation pattern is brewing a new leader. The technology sector is down more than 4% this year, but energy, consumer staples, materials, and industrial stocks have all risen at least 10% by 2026, and small-cap stocks have also recorded impressive gains. Mark Hackett, chief market strategist at Nationwide, said that the shift in the leading structure is undeniable and is gradually taking root in investors' minds. (4) Kevin Gordon, Head of Macro Research and Strategy at Charles Schwab, stated that the lack of tech-led gains makes it difficult to push the index to new all-time highs, but this isn't necessarily a bad thing. Currently, tech stocks account for about one-third of the S&P 500's weighting; continued weakness could drag down the benchmark, but broader participation in the rally is actually a good sign for market health. (5) Next week's focus shifts to Walmart's earnings report and key economic data. Walmart's stock price has risen 20% this year, pushing its market capitalization past $1 trillion. As a consumer bellwether, its quarterly report will reveal consumer spending trends. Economic data includes the preliminary US fourth-quarter GDP, the consumer confidence index, and the core inflation indicator, the PCE price index. (6) Gordon pointed out that sectors that have recently experienced a "catch-up rally" are sensitive to the health of the economy. This may not reflect a significant further acceleration of the economy, but it is at least a sign of stabilization. The market should pay attention to whether AI concerns spread further and whether the rotation rally can gain sustained support with data validation.
