Economic Data, AI Concerns in Focus Over Volatile Week

• The Dow, S&P 500, and Nasdaq are all on track for weekly losses despite record closes earlier in the week, driven by widespread AI disruption fears that emerged Thursday
• Strong jobs data initially boosted markets Wednesday, but sentiment turned negative when investors realized growth was concentrated in only a few sectors like healthcare, reducing expectations for Fed rate cuts
• Earnings season continued with mixed results: some companies rallied on strong AI-related guidance and beat-and-raise reports, while others tumbled on disappointing results and weak outlooks, with one stock marking its worst daily drop in decades

Market Summary: Economic Data and AI Concerns Drive Volatility

Key Market Movements

U.S. markets experienced significant volatility during the week of February 13, 2026. The Dow Jones Industrial Average hit record highs early in the week on Monday and Tuesday but reversed course by week's end. All three major indices—the Dow, S&P 500, and Nasdaq—are tracking toward weekly losses. The Cboe Volatility Index (VIX) is poised for its fifth consecutive weekly gain, the longest winning streak since March 2020.

Primary Market Drivers

Markets initially rallied on strong economic data Wednesday but sold off after analysis revealed jobs growth was concentrated in limited sectors, particularly healthcare. Concerns emerged that a resilient labor market could prevent the Federal Reserve from cutting interest rates. Thursday brought additional headwinds as AI disruption fears spread rapidly across Wall Street, ultimately determining the week's negative trajectory.

Earnings Season Highlights

Corporate earnings generated sharp reactions. While specific company names were redacted from the article, several firms declined following quarterly misses and weak outlooks, with one experiencing its worst daily drop in decades due to disappointing results. Others rallied on beat-and-raise reports, with at least one company reaching record highs on strong AI-related demand and guidance.

Corporate Developments

Notable C-suite changes included the appointment of former Walmart executive Greg Foran as CEO at an undisclosed company. A partnership between Amazon's AWS and another firm was announced, sparking significant stock movement.

Week Ahead

Markets will be closed Monday, February 16, for Presidents' Day. Investors should prepare for substantial economic data releases throughout the shortened week.