General Market News

The Trump administration is reportedly preparing to ease steel and aluminum tariffs imposed last year, particularly on derivative products, following pressure from businesses, allies, and lawmakers. The review aims to simplify enforcement and support trade negotiations with the EU, amid evidence that American consumers and businesses are bearing nearly 90% of tariff costs. Changes would reduce compliance burdens and ease tensions with trading partners affected by the measures.

• Tariffs of up to 50% were imposed to address Chinese overcapacity but expanded to hundreds of derivative products, creating enforcement confusion as companies struggle to determine metal content in imported goods
• Studies by the Congressional Budget Office and Federal Reserve Bank of New York found American businesses and consumers paid nearly 90% of tariff costs in 2025, contributing to public dissatisfaction with over 70% of adults rating economic conditions as fair or poor
• The review is tied to EU trade discussions, as Europe faces a 50% duty complicating a broader trade framework, while other partners including Canada, Mexico, South Korea, and the UK have also been affected by the tariff regime

European stock futures pointed to a mixed open on Friday following a broad sell-off on Wall Street driven by renewed AI sector concerns. U.S. major indices all declined Thursday, with the 'Magnificent 7' tech stocks particularly affected, while investors await key U.S. inflation data and digest ongoing corporate earnings reports.

• AI jitters hit U.S. markets hard on Thursday, with real estate, trucking, and software stocks seeing significant declines and all Magnificent 7 tech stocks closing negative
• U.S. inflation data scheduled for release at 8:30 a.m. ET Friday is a key focus for global investors
• Metal markets declined after reports that President Trump plans to scale back steel and aluminum tariffs, with aluminum futures down 1.2% in London and 0.6% in the U.S.

Indian IT stocks lost approximately $50 billion in market value during February 2025, driven by fears that rapid AI adoption could disrupt the country's $283 billion IT services industry. The Nifty IT index fell 9.4% for the week ending February 13, marking its steepest decline since the March 2020 COVID-19 market crash, with major firms like TCS, Infosys, and HCLTech leading the losses.

• The sell-off was triggered by Anthropic's launch of an AI tool in January, intensifying concerns that generative AI could reduce demand for traditional IT services
• J.P. Morgan noted investor worries that Indian IT firms may miss growth targets as clients reallocate spending toward AI, though the firm argued it's 'overly simplistic' to assume AI can replace enterprise-grade software services
• Industry leaders dropped on Friday: Tata Consultancy Services fell 2.4%, Infosys declined 2.2%, and HCLTech lost 1.2%, contributing to the broader market correction

The United States and Taiwan have signed a trade agreement that reduces U.S. tariffs on Taiwanese exports to 15%, matching rates for Japan and South Korea. In exchange, Taiwan will eliminate or reduce 99% of tariff barriers on U.S. goods and has committed to purchasing over $84 billion in American products from 2025 to 2029, including energy and aviation goods.

• Taiwan will provide preferential market access for U.S. industrial and agricultural exports including autos, beef products, and minerals, and will accept U.S. vehicles built to U.S. safety standards without additional requirements
• The deal follows commitments by Taiwanese chip companies to invest at least $250 billion in U.S. production capacity, though Taiwan has pushed back on U.S. proposals to relocate 40% of its semiconductor supply chain
• China criticized the agreement, claiming it exploits Taiwan's key semiconductor industry, while the deal comes amid ongoing tensions over Taiwan's status and U.S. arms sales to the island worth billions of dollars

Trucking and logistics stocks plummeted on February 12, with Landstar System and C.H. Robinson each falling over 14% and the Dow Jones Transportation Average dropping 4%. The sell-off was triggered by AI automation fears after Algorhythm Holdings announced its AI logistics platform increased freight volumes 300-400% without adding staff, raising concerns about job displacement in the sector.

• Algorhythm Holdings' stock surged 30% after announcing its SemiCab AI unit boosted customer freight volumes by 300-400% without increasing headcount, sparking automation displacement fears across the logistics industry
• The transportation sector decline reflects broader market volatility around AI disruption, with investors adopting a 'shoot first, ask questions later' approach to any AI-related headlines that threaten traditional business models
• Market concerns echo recent fears about AI encroachment following Anthropic's Claude Cowork agent launch, which rattled global markets over potential disruption to traditional software companies

The Trump administration finalized a reciprocal trade agreement with Taiwan that sets U.S. tariffs on Taiwanese imports at 15% while Taiwan will eliminate or lower tariffs on nearly all U.S. goods. Taiwan commits to purchasing $84.8 billion in U.S. goods through 2029, including energy, aircraft, and power equipment. The deal puts Taiwan on equal footing with South Korea and Japan regarding tariff rates.

• Taiwan will immediately eliminate tariffs up to 26% on U.S. agricultural products including beef, dairy, and corn
• Taiwan commits to purchasing $44.4 billion in LNG and crude oil, $15.2 billion in civil aircraft, and $25.2 billion in power grid equipment through 2029
• The agreement reduces U.S. tariffs on Taiwanese semiconductors and other goods from the initial 20% to 15%, matching rates for South Korea and Japan

Gold has experienced unusual volatility recently, with sharp swings rare for the historically stable asset. Analysis suggests a modest recovery over the long term, with historical data showing gold typically regains prior highs within a year after significant selloffs. The case for holding gold is reinforced by CBO projections showing U.S. debt will exceed 100% of GDP this year, with annual deficits reaching $3 trillion by 2036 and interest costs consuming over 25% of tax revenue.

• Gold fell more than 12% over two trading days for only the second time in 30 years; historical analysis shows recoveries are measured, with average rebounds adding roughly 8% over 360-day periods after similar drops
• The Congressional Budget Office projects the U.S. deficit will reach $3 trillion (6.7% of GDP) by 2036, with debt-to-GDP crossing 100% in 2026 and interest costs exceeding a quarter of all tax revenue
• Analyst recommends holding precious metals as portfolio anchors against fiscal excess and inflation, not for speculative gains, while highlighting POET Technologies as a complementary AI infrastructure play in optical interconnect technology

State Street's chief investment strategist Michael Arone predicts small-cap stocks will outperform in 2026 after nine years of underperformance, alongside healthcare sector gains and inflation undershooting expectations. The Russell 2000 small-cap index has already risen 8% year-to-date, outpacing the S&P 500, while investors pulled $12 billion from small-cap ETFs over the past year. Multiple factors including lower interest rates, weaker dollar, and deregulation support the bullish small-cap outlook.

• Small-cap earnings estimates for 2026 exceed large-cap projections, with declining interest expenses boosting profitability as the Fed continues rate cuts expected to begin in June
• Healthcare stocks present a 'compelling' opportunity trading at depressed valuations near a 40-year low weight in the S&P 500, with only $537 million in ETF inflows versus $10.6 billion for industrials
• Investors appear caught off guard by small-cap strength after withdrawing $12 billion from small-cap ETFs, potentially missing the sector rotation amid January's positive performance indicators

The January consumer price index is expected to show inflation at 2.5% year-over-year, matching May 2025 levels despite concerns that President Trump's 'liberation day' tariffs would drive prices higher. A reading at or below consensus could encourage the Federal Reserve to cut interest rates without risking renewed inflation, as CPI has consistently come in below Wall Street forecasts for three consecutive months.

• Both headline and core CPI are expected to show 0.3% monthly increases in January, with core CPI anticipated at 2.6%, continuing a downward trend from the September 2025 peak above 3%
• Goldman Sachs estimates tariffs will contribute 0.07 percentage points to core inflation, with pressure on clothing, recreation, household furnishings, education and personal care sectors
• With the federal funds rate at 3.5%-3.75%, well above pre-Covid levels, analysts believe the Fed has significant room to cut rates if inflation remains moderate

Schaeffers Research has identified 18 heavily shorted growth stocks that may be positioned for short squeezes amid recent market volatility. The screen identifies stocks where short sellers have accumulated significant positions at higher prices and may now face substantial losses, potentially forcing them to cover their positions. Notable names on the list include AST SpaceMobile (ASTS), IREN (IREN), and nuclear energy startup Oklo (OKLO).

• The analysis uses short interest data from the most recent reporting period (December 15) and estimates short seller returns by tracking when positions were added over the past year using average prices from two-week periods
• The opportunity arises as Wall Street rotates out of growth stocks, creating a contrarian play where shorts facing losses may be forced to cover, potentially triggering upward price momentum
• Key stocks identified include AST SpaceMobile (ASTS), IREN (IREN), and nuclear energy company Oklo (OKLO) as having significant short interest with potential for squeeze scenarios

U.S. stock markets declined sharply on February 12, 2026, with the Nasdaq falling 1.5% as investors shifted focus from economic data to growing concerns about AI disrupting business models and potentially causing higher unemployment. The 'Magnificent Seven' tech stocks led the selloff, with Apple down 3% and software/networking sectors hit particularly hard, while investors rotated into 'old economy' stocks like Walmart and Boeing.

• Tech sector bore the brunt with Apple falling 3%, Meta and Amazon down 2%, and Cisco Systems plunging 11% as AI concerns spread beyond just software to networking hardware
• Investors rotated into non-tech 'old economy' stocks, with Walmart gaining 3% and Boeing up 2%, while the Dow (with limited tech exposure) recently hit a record above 50,000
• Upcoming Friday consumer inflation report could trigger further volatility as markets balance AI disruption fears with Fed policy uncertainty, potentially pushing rate cut expectations from June to September or later

The European Commission will present a plan in March to deepen the EU's single market of 450 million consumers and accelerate the capital markets union to mobilize 10 trillion euros in savings currently held in bank accounts. Commission President Ursula von der Leyen announced the initiative aims to boost EU competitiveness, with phase one targeted for completion by June 2026.

• The EU aims to complete phase one of the Savings and Investment Union by June, covering market integration, supervision, and securitization
• If progress stalls with all 27 member states, the EU will pursue 'enhanced cooperation' with at least 9 countries moving forward at a faster pace
• The capital markets union seeks to unlock approximately 10 trillion euros in savings currently sitting idle in bank accounts for more productive investment

Trucking and logistics stocks fell sharply Thursday after AI company Algorhythm announced its SemiCab platform enables freight operators to scale volumes by 300-400% without adding staff. Leading companies including C.H. Robinson and J.B. Hunt dropped over 20% as investors scrutinize traditional businesses vulnerable to AI disruption. The tool reportedly reduces empty freight miles by over 70%, addressing a problem that costs the industry more than $1 trillion annually.

• C.H. Robinson and J.B. Hunt each dropped more than 20%, while XPO fell 9%, Landstar declined 7.9%, and Expeditors lost 16.5% during Thursday's session
• Algorhythm's SemiCab platform allows operators to scale freight volumes by 300-400% without increasing headcount and reduces empty freight miles by over 70%
• The selloff adds trucking to growing list of traditional industries facing AI disruption concerns, with analysts noting debate around open-source automation agents that could level the playing field for smaller operators

ARKO Petroleum shares declined in their Nasdaq debut, reflecting broader concerns about post-IPO performance amid recent market volatility. The disappointing debut comes as more companies enter the U.S. IPO pipeline driven by pent-up demand, despite investor worries triggered by volatility in tech and data-services stocks.

• ARKO Petroleum's shares fell on their first day of trading on Nasdaq, joining other recent IPO underperformers
• Recent IPOs including YSS.N and Ethos Technologies are trading well below their IPO prices as of Wednesday's close
• Growing IPO pipeline faces headwinds from recent market volatility, particularly in tech and data-services sectors, raising concerns about post-listing performance

SEC Chairman Paul Atkins told Congress the agency will restore some positions after workforce cuts depleted key divisions by nearly 20%. The cuts resulted from Trump administration buyout offers linked to the Department of Government Efficiency initiative. Atkins also defended the SEC against accusations it dropped enforcement cases against crypto companies with ties to President Trump for political reasons.

• Staff exodus from voluntary buyouts reduced some SEC divisions by nearly 20% as of a year ago, raising concerns about the agency's ability to police markets and respond to crises
• Atkins stated the decision to drop crypto enforcement cases was made by the acting chair before his arrival and primarily involved securities registration failures viewed as 'regulation through enforcement'
• The Trump administration has placed limits on agencies' ability to rehire after staffing cuts, though the SEC avoided mass dismissals by offering voluntary workforce reductions

Norway's central bank governor pledged to bring inflation back to its 2% target after core inflation unexpectedly accelerated to 3.4% in January, up from 3.1% in December. The surprise increase, which exceeded both analyst forecasts and the bank's own estimate of 2.9%, casts doubt on further interest rate cuts following a 50-basis-point reduction to 4.0% earlier in 2025.

• Core inflation rose to 3.4% year-on-year in January, surpassing economists' average prediction of 3.0% and triggering a rally in Norway's currency against the euro
• Norges Bank began an easing cycle in 2025 with a 50-basis-point cut to 4.0%, but the inflation surprise may force the bank to halt cuts or even raise rates
• The central bank's next rate decision is scheduled for March 26, with Governor Ida Wolden Bache warning that 'the outlook can change abruptly' and making no promises about future policy rates

As Q1 2026 investor conferences approach, new market themes are emerging including DeepSeek AI's disruption of software stocks, Energy and Materials sectors leading with 15%+ gains, and the Dow crossing 50,000 despite 'sell America' narratives. Software companies lost hundreds of billions in market cap in early February while resource stocks benefited from rising commodity prices and dollar weakness.

• Software giants like Salesforce, Intuit, ServiceNow, and Adobe shed hundreds of billions in market cap during the first week of February due to China's DeepSeek AI moment, raising questions about AI disrupting the SaaS industry
• Energy and Materials sectors are 2026's top performers, both up over 15% year-to-date, outpacing Information Technology which sits near the bottom of S&P 500 sector rankings
• A packed schedule of investor conferences through March, including NVIDIA GTC (March 16) and CERAWeek (late March), will provide critical insights as executives face tough questions on economic strategy, layoffs, and industry disruption

Sen. Thom Tillis rejected a proposal to transfer the DOJ's criminal investigation of Fed Chair Jerome Powell to the Senate Banking Committee, maintaining his blockade on Kevin Warsh's nomination as Powell's replacement. The proposed off-ramp aimed to drop criminal prosecution threats while satisfying President Trump, but Tillis insists on Fed independence and demands the DOJ either prove a compelling case or drop the investigation.

• Tillis, a Banking Committee member, refuses to allow a markup vote on Warsh's nomination until the DOJ investigation is resolved, stating 'we do oversight, we don't prosecute'
• The rejected proposal would have transferred the Powell probe from DOJ to the Senate Banking Committee as a compromise to end criminal prosecution threats
• Tillis believes the White House was unaware of the DOJ investigation and sees no confirmation path for Warsh without resolution, expecting most Democrats to oppose the nomination

Artificial intelligence is creating significant volatility in U.S. stock markets as investors reassess which companies will benefit or suffer from AI disruption. Software, wealth management, and insurance sectors have experienced sharp selloffs following announcements of new AI tools, while questions about massive AI capital spending are pressuring Big Tech megacaps like Microsoft and Amazon. The shift marks a departure from 2025's broad AI-driven rally, with stock picking now focused on avoiding 'implosions' rather than riding a monolithic AI trade.

• The S&P 500 software and services index dropped 15% since end of January 2026, with its forward P/E ratio falling to 22.7x, the lowest in nearly three years, following AI disruption concerns from products like Anthropic's Claude Cowork agent
• Wealth management and insurance stocks tumbled sharply on specific AI announcements: LPL Financial, Raymond James, and Charles Schwab each fell at least 7% after Altruist launched AI tax planning, while insurers dropped following Insurify's ChatGPT-powered comparison tool
• Microsoft and Amazon shares are down 16% year-to-date amid concerns over insufficient returns on massive AI capital expenditures, though some strategists see buying opportunities as valuations become more attractive

Gabriela Berrospi, founder of Latino Wall Street, hosted the inaugural Hispanic Prosperity Gala at Mar-a-Lago on February 10, 2026, featuring political and business leaders. Argentina's President Milei received the Economic Freedom Award at the star-studded event, which showcased Latino economic empowerment and highlighted growing right-wing transnational ties across the Americas.

• Berrospi has built Latino Wall Street into a major financial literacy organization, gaining prominence as a Forbes Finance Council member with a TV show on the New York Stock Exchange in partnership with FinTech TV
• The gala featured Latin Grammy winners, athletes, and business leaders, aiming to counter negative media portrayals and showcase Latino success stories across industries
• Berrospi advocates conservative investment strategies inspired by Warren Buffett and Ray Dalio, focusing on proven index investing and automatic savings rather than get-rich-quick schemes or conspicuous consumption