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2026-02-16 11:08:54
[AI Wave Intertwined with Inflation Data, Fed Decisions and Housing Market Outlook Draw Attention] Investors found some respite on Friday as software stocks rebounded after a series of sharp declines. Meanwhile, January's CPI rose less than expected, shifting market focus back to sectors potentially benefiting from interest rate cuts and an improving economy. Edward Jones, a senior strategist, stated that the previous sell-off lacked justification, and the market is realizing that not all businesses will disappear. However, optimism surrounding small-cap stocks and "old economy" sectors couldn't mask the overall downward trend. The iShares Expanded Tech-Software Sector ETF (IGV) is still down over 20% this year, indicating that speculative sectors have been severely impacted. The Dow Jones Industrial Average is up 3% year-to-date, outperforming the tech-heavy Nasdaq, with the market anticipating it to be more resilient to the disruptive effects of AI. Analysts point out that investors should prepare for the Fed not to cut interest rates for several months, given the strong January jobs report and Powell's term extending into May. Simultaneously, the panic surrounding AI may begin to influence central bank decisions and impact the US housing market. Moody's analysts say that mortgage delinquency rates are rising in recent years due to high interest rates and high housing prices, with particularly pronounced pressure in parts of Florida and Texas. This trend warrants close monitoring in 2026. Furthermore, the possibility of companies laying off employees due to AI applications is also a point of observation regarding housing market risks.
