General Market News

Despite recent weakness in the broader technology sector, select AI stocks focused on data storage and memory continue to attract strong institutional investment. The article highlights Seagate Technologies and Micron Technology as companies experiencing significant institutional inflows while demonstrating robust earnings growth and positioning in AI infrastructure.

• Seagate Technologies (STX) shows 1-year sales growth of 38.9%, 3-year EPS growth of 99.1%, and is expected to grow EPS by 48.4% in 2026, with stock rising from around $150 to current levels following institutional buying.
• Micron Technology (MU) demonstrates 3-year sales growth of 20.3%, 3-year EPS growth of 409.2%, and 32.5% expected EPS growth this year, with shares climbing from approximately $120 in July 2025 to nearly $400.
• Money is rotating within tech rather than leaving the sector entirely, with data storage and high-bandwidth memory producers benefiting from AI server, smartphone, and cloud computing demand while other tech segments weaken.

Cathie Wood's ARK Invest purchased over 716,000 shares of Bullish (BLSH) worth approximately $17.83 million following the crypto exchange's Q4 earnings, while simultaneously selling 119,236 Coinbase shares worth $17.42 million. The moves come as cryptocurrency stocks face volatility, with bitcoin falling to 16-month lows near $60,000 before recovering to around $68,200.

• Bullish reported a Q4 loss of $3.73 per share, beating analyst expectations of a $4.03 loss, despite a 2.6% decline in digital asset sales to $64.3 billion
• The purchases were made across three ARK ETFs (ARKK, ARKW, ARKF), with Bullish now representing between 1.43% and 2.37% of each fund's holdings
• BLSH stock had fallen nearly 18% in February and was headed for a fourth consecutive month of steep losses before rebounding 5.6% following the ARK purchases

US stock futures pointed higher Friday morning with Nasdaq futures up 0.6%, attempting to recover from Thursday's tech-led selloff where the Nasdaq fell 1.6%. Amazon shares plummeted over 10% after hours despite strong sales growth, following the company's announcement of a $200 billion capex plan for 2026, $50 billion above forecasts, raising investor concerns about excessive AI infrastructure spending.

• Alphabet announced a $175-$185 billion 2026 capex plan, nearly double last year's spending, while Amazon's $200 billion AI infrastructure budget exceeded forecasts by $50 billion despite 14% sales growth to $213 billion and 26% AWS growth
• Investors are increasingly skeptical about 'hyperscaler' tech companies' massive AI spending plans, fearing wasted capital with uncertain returns as the AI bubble concerns resurface
• The tech selloff triggered broader market impacts with crypto in 'freefall' and precious metals weakening, as analysts describe it as 'a week from hell for tech stocks'

China is rapidly emerging as a biotech powerhouse, shifting from generic drugs to innovative medicines that are disrupting the global industry. Western pharmaceutical giants including Pfizer, Eli Lilly, and AstraZeneca have announced over $61 billion in deals to license or acquire Chinese biotech assets in 2025, representing more than 40% of total pharma deals. This transformation threatens U.S. and European biotech dominance while creating both partnership opportunities and competitive challenges.

• China now runs 39% of global cancer drug clinical trials versus 32% in the U.S., with Morgan Stanley predicting Chinese drugs could account for 35% of FDA approvals by 2030, up from just 5% currently
• Chinese biotech companies benefit from faster regulatory approval, government funding, flexible regulations, and lower development costs, allowing them to move from concept to clinical testing at roughly twice the speed of U.S. companies
• The BIOSECURE Act passed in December 2025 creates potential barriers by restricting federal funds for firms linked to foreign adversaries, while the Trump administration's focus on national security and onshore manufacturing may further complicate U.S.-China biotech partnerships

Adam Recker, head of equities at Mather Group ($15 billion in assets), advocates for global diversification in current markets as international stocks gain momentum after years of U.S. dominance. He recommends three ETFs spanning global equities, emerging markets, and international small-cap value stocks to capitalize on valuation gaps and growth opportunities. Despite elevated valuations, Recker maintains an optimistic but disciplined approach, emphasizing long-term planning over reacting to market concerns.

• Vanguard Total World Stock Index (VT) tracks nearly 10,000 global stocks with a 0.06% expense ratio, returning 22.43% in 2024 and 4.25% year-to-date as Recker's core global holding
• Dimensional Emerging Markets Core Equity (DFAI) surged 34% in 2024 and 7% year-to-date, benefiting from commodity strength, technology growth, and dollar weakness with a factor-based approach
• Dimensional International Small Cap Value (DISV) delivered 47% returns in 2024 and 9% year-to-date with a 3.8% dividend yield, targeting undervalued non-U.S. small companies trading below book value

Commodities analyst Jeff Christian warns that the U.S. economy shows signs of decline, with a weakening labor market, persistent inflation, and political uncertainty likely to trigger heightened market volatility in 2026. He argues that current interest rate cuts driven by slow growth and weak earnings will damage rather than support stock prices, contrary to typical economic cycles.

• Over 20% of global financial assets remain in cash as investors shift toward safe-haven commodities like gold, silver, and industrial metals amid economic uncertainty
• U.S. labor market shows significant weakness with initial jobless claims at 231,000 (vs. 212,000 expected) and job openings falling to 6.5 million (vs. 7.1 million expected)
• The Federal Reserve faces a 'stalemate' situation with producer price inflation near 3% while unemployment rises, caught between fighting inflation and preventing recession

U.S. technology stocks are experiencing a sharp selloff driven by concerns about AI's disruptive impact on business models, with the software sector falling 17% in just over a week. While investors see encouraging rotation into energy, consumer staples, and industrials, tech's one-third weight in the S&P 500 has erased the index's 2026 gains. The coming week brings critical economic data including January jobs numbers on Wednesday and CPI inflation data on Friday.

• The tech sector has dropped over 12% since late October, with software particularly hard hit amid disappointing earnings from Microsoft and fears that AI will create winners and losers rather than lifting all companies equally
• January payrolls expected to show 70,000 jobs added while jobless claims surged, with both employment and inflation data delayed by the recent government shutdown
• Markets expect the Federal Reserve to hold rates steady until June, pricing in roughly two quarter-point cuts by December despite 'somewhat elevated' inflation

U.S. stock index futures declined on February 6, 2026, with the Nasdaq-100 testing its critical 200-day moving average amid a broad tech sector sell-off. The weakness was driven by disappointing reactions to earnings from tech giants like Alphabet and Amazon, whose massive AI spending plans failed to reassure investors. The software sector is facing its worst week since 2008, signaling growing market skepticism about AI investments without clear financial returns.

• E-mini Nasdaq-100 futures fell 0.41% to 24,549.25, testing the 200-day moving average at 24,201.75 with potential further downside to 23,350 if support fails
• Amazon shares dropped after announcing significant AI infrastructure spending, reflecting investor concern that heavy AI investments aren't translating to financial returns
• The software sector is experiencing its worst weekly performance since 2008, with Qualcomm down 8.5% post-earnings and Alphabet falling despite beating earnings expectations

Asian stocks fell on Friday led by technology sector declines, with South Korea's KOSPI dropping 1.7% as investors retreated from tech stocks following AI developments. Indonesia's markets tumbled over 2% after Moody's downgraded the country's credit rating outlook, compounding concerns over policy uncertainty under President Prabowo Subianto and fiscal deficits.

• South Korean chipmakers Samsung and SK Hynix declined as concerns spread from U.S. tech markets after AI firm Anthropic's new legal tool raised worries about broader impacts on IT and software sectors
• Indonesia's rupiah fell to 16,885 per dollar (weakest since Jan 22) and foreign investors pulled $1 billion from equities in 2025 amid growing concerns over fiscal deficits and central bank independence
• Thailand and Japan hold elections on February 8, with Japan's expected ruling coalition win likely to reduce prospects for larger fiscal stimulus

Market leadership is broadening beyond tech stocks as cyclical and value sectors like Utilities, Energy, Industrials, and Financials gain momentum. Several major non-tech companies are hosting investor days and business updates in February-March 2026, which could provide insights into Main Street economic strength. These events follow the strongest U.S. manufacturing PMI reading since August 2022, potentially signaling a new phase of the bull market.

• Key corporate events include Xcel Energy (Feb 5), Williams Company (Feb 10), FedEx Investor Day (Feb 12), JPMorgan business update (Feb 23), and aerospace firms L3Harris and Howmet in late February-March
• Utilities and Energy sectors are seeing major investment shifts, with Williams announcing $5.1 billion in power innovation capex and 9% annualized growth projections amid rising U.S. power demand
• Defense and banking stocks have faced early 2026 pressure from regulatory concerns, including Trump administration proposals on defense contractor clawbacks and potential credit card interest rate caps

Moody's downgraded Indonesia's credit rating outlook from stable to negative on Thursday, citing reduced policy predictability and weakening governance under President Prabowo Subianto. This follows MSCI's transparency concerns that triggered over $80 billion in market selloffs, putting additional pressure on Indonesian markets including the rupiah, stocks, and government bonds.

• The rupiah remains near its record low of 16,985 per U.S. dollar, down nearly 1% year-to-date, while the Jakarta Composite Index has fallen 2.7% this week after declining 6.9% last week
• Moody's maintained Indonesia's Baa2 rating but warned that persistent governance issues could erode the country's policy credibility, with other ratings agencies potentially following suit within 12-18 months
• Foreign investors have sold approximately $860 million in Indonesian assets, and despite government assurances about solid economic fundamentals, markets continue experiencing outflows amid concerns about fiscal deficits and central bank independence

Vanguard's chief investment officer is encouraging some clients to consider allocating more than 50% of their portfolios to bonds, marking a potential shift from the traditional 60/40 stock-bond allocation. With 10-year Treasury yields at 4.2%, bonds are offering real yields above inflation for the first time in nearly a decade. Vanguard expects stock and bond returns to be comparable over the next decade due to elevated stock valuations and AI investment risks.

• The 10-year Treasury yield stands at 4.2%, providing a premium over current inflation and marking the first time in almost a decade that bonds are earning real yields above inflation
• U.S. stocks have been overvalued according to Vanguard's CIO, with the S&P 500 up about 90% since October 2022, but the firm predicts stock and bond returns will be 'pretty comparable' over the next decade
• Recent market action demonstrated bonds' appeal as stocks fell for three consecutive days (S&P 500 down 2.5%, Nasdaq down 4.5% since Monday) while bond prices surged Thursday

U.S. employers announced 108,435 job cuts in January 2026, the highest level for the month since 2009 and a 205% increase from December. The surge, driven by cuts in transportation, technology, and healthcare sectors, suggests employers are pessimistic about the 2026 economic outlook, with layoffs attributed to contract losses, market conditions, and restructuring.

• Transportation led with 31,243 cuts (mostly UPS eliminating 30,000 jobs due to reduced Amazon shipments), followed by technology with 22,291 cuts (primarily Amazon management restructuring)
• Healthcare announced 17,107 cuts, the sector's highest since April 2020, driven by inflation, high labor costs, and lower Medicaid/Medicare reimbursements
• Hiring plans dropped to 5,306 in January, the lowest since tracking began in 2009, down from 6,089 in January 2025 and 10,496 in December 2025

InvestorPlace analyst Louis Navellier argues that despite market uncertainty, several positive economic indicators suggest strong growth ahead, with U.S. GDP potentially reaching 6% annualized growth in 2026. He predicts an 'AI Dislocation' where market leadership shifts from mega-cap AI stocks to smaller companies building AI infrastructure and enabling technologies. Small-cap stocks surged 7% in January, significantly outpacing major indexes, signaling a potential rotation in market leadership.

• U.S. economy posted 4.4% GDP growth in Q3 2025 following 3.8% in Q2, marking the strongest back-to-back quarters since 2021, driven by 3.5% consumer spending growth
• The Russell 2000 small-cap index gained 7% in January, far outperforming the S&P 500's 1.4% and Dow's 1.6%, suggesting a leadership rotation toward domestic-focused smaller companies
• Navellier predicts an 'AI Dislocation' around February 25 where investors move beyond obvious mega-cap winners like NVIDIA and Microsoft toward smaller AI infrastructure and enablement companies

Reddit stock rose in after-hours trading following the company's fourth quarter earnings report that exceeded analyst expectations. The social media platform also announced a $1 billion stock buyback authorization and reported adjusted earnings of $1.24 per share.

• Reddit's Q4 earnings beat Wall Street expectations with adjusted earnings of $1.24 per share
• The company authorized a $1 billion stock repurchase program, signaling confidence in its financial position
• The positive earnings report comes after Reddit stock had slumped earlier in January on mixed feedback from advertising agencies

Mexican officials are in talks with the U.S. to find a way to send fuel to Cuba as humanitarian aid without triggering tariffs threatened by President Trump against countries supplying oil to the island. Cuba faces severe fuel shortages after Venezuelan shipments ceased and Mexico halted deliveries in mid-January under U.S. pressure. The situation has prompted U.N. warnings of a potential humanitarian collapse in Cuba.

• Cuba requires fuel imports for two-thirds of its energy needs and is experiencing acute shortages after Mexico, its largest supplier, halted shipments in mid-January due to Trump administration pressure
• High-level Mexican officials are holding talks 'almost every other day' with U.S. counterparts to determine if fuel can be sent as humanitarian aid, potentially including gasoline, food, and supplies within days if agreement is reached
• Mexico faces competing pressures: avoiding U.S. tariffs while maintaining ideological ties to Cuba, as President Sheinbaum warns that tariffs on oil suppliers could trigger a humanitarian crisis affecting Cuban hospitals and basic services

CNBC tested AI coding tools by building a clone of Monday.com's project management platform in under an hour using Claude Code, demonstrating the potential threat AI poses to certain software companies. The experiment highlights which software stocks may be most vulnerable to AI disruption, particularly those that 'sit on top of the work' rather than serving as core business systems.

• Non-developers created a working Monday.com clone with AI integration in under one hour for just $5-$15 in compute credits, suggesting easier-to-replicate software may face significant competitive pressure
• Most exposed companies include project management and workflow tools like Atlassian, Adobe, HubSpot, Zendesk, and Smartsheet that aren't core to business operations
• Systems of record like Salesforce and cybersecurity stocks like CrowdStrike and Palo Alto Networks are considered safer due to network effects and enterprise data anchoring that make them harder to replicate

Anthropic released Claude Opus 4.6, a new AI model with enhanced legal analysis capabilities and tools for knowledge workers in Excel and PowerPoint. The announcement triggered stock market declines in legal and professional services sectors, as investors fear AI displacement of white-collar jobs. Despite Anthropic being known by less than 5% of the US population, analysts warn this could signal a shift from AI exuberance to bubble concerns.

• The legal analysis plug-in for Claude chatbot caused immediate stock market reactions in professional services sectors, with analysts describing the market as being in 'seek and destroy mode' hunting for AI-vulnerable industries
• Claude Opus 4.6 outperformed previous models in 38 of 40 cybersecurity investigations according to Norway's Sovereign Investment, and can now handle complex tasks in enterprise applications like building presentation decks and working with large codebases
• Financial analysts suggest this could be the 'canary in the coal mine' for an AI bubble burst, following historical bubble patterns where winners narrow before market-wide collapse

Treasury Secretary Scott Bessent refused to rule out a potential DOJ investigation of Federal Reserve Chair nominee Kevin Warsh if he declines to cut interest rates as President Trump desires, stating such decisions are 'up to the president.' The exchange occurred during Senate Banking Committee testimony with Sen. Elizabeth Warren, amid ongoing concerns about Fed independence following an unprecedented DOJ investigation into current Fed Chair Jerome Powell.

• Bessent would not commit that Warsh would avoid investigation or lawsuit if interest rate decisions displease Trump, breaking with traditional White House deference to Fed independence
• Current Fed Chair Jerome Powell is already under DOJ investigation related to renovation cost overruns, widely viewed as retaliation for refusing to lower rates to Trump's preference
• Democrats and some Republicans have called for halting Warsh's nomination until investigations into Powell and Fed Governor Lisa Cook are ended, with critics characterizing the probes as attempts to strong-arm the independent central bank

Anthropic launched its upgraded Claude Opus 4.6 AI model on Thursday, offering improved coding and finance capabilities along with the ability to process 1 million tokens per prompt. The release comes amid a market selloff in traditional software stocks, with companies like Salesforce, Workday, and Thomson Reuters trading approximately 3% lower as investors fear AI disruption. Industry leaders and Anthropic itself argue that AI will complement rather than replace older software companies.

• Claude Opus 4.6 can handle 1 million tokens in a single prompt and features autonomous agents in the Claude Code programming tool to complete tasks faster
• Traditional software stocks including Salesforce, Workday, and Thomson Reuters each declined around 3% Thursday, extending a week-long selloff driven by AI advancement concerns
• Anthropic's head of product stated the company aims to 'partner and actually lower the floor to get more value' from existing software tools rather than replace them