General Market News

European stocks declined on February 11, with the STOXX 600 falling 0.2% to 619.66 points, driven by concerns over AI disruption affecting technology and insurance sectors. Software maker Dassault plunged nearly 20% after disappointing quarterly results, while the broader tech sector dropped 2% amid ongoing AI-related market anxiety.

• Dassault Systemes crashed nearly 20% after Q4 revenue rose just 1% to 1.68 billion euros, at the lower end of guidance, continuing selloff from last week's AI disruption worries
• Insurance stocks fell nearly 2% this week after Barclays downgraded the European sector to 'Underweight' following the release of Insurify's ChatGPT tool
• AI hardware makers outperformed, with Siemens Energy gaining 5.2% after reporting net profit nearly tripled in its first fiscal quarter

The yen surged more than 2.5% following Prime Minister Sanae Takaichi's landslide election victory, while weaker-than-expected U.S. retail sales data raised concerns about consumer health and the world's largest economy. Markets are focused on delayed U.S. jobs data and major European earnings reports amid growing doubts about economic strength.

• U.S. core retail sales rose only 0.1% in December with downward revisions for October and November, prompting Treasury rallies and increased rate cut expectations
• January payrolls expected to show 70,000 jobs added versus 50,000 in December, with potential revisions showing hundreds of thousands fewer jobs created through March
• Commonwealth Bank of Australia surged 7.8% on strong earnings while TSMC's gains pushed Taiwan's market to a record high before Lunar New Year

UBS downgraded the US tech sector from 'attractive' to 'neutral' for 2026, citing concerns about AI disrupting traditional software, unsustainable capital expenditures, and overvaluation. The investment firm warns that the four largest hyperscalers are projected to spend approximately $700 billion this year on AI infrastructure, potentially leading to negative free cash flow.

• AI is evolving from assistant to replacement for traditional software, with tools like Anthropic's new capabilities encroaching on legacy software firms' core businesses
• The 'Magnificent Seven' tech companies face an unsustainable AI spending boom, with Google, Microsoft, Amazon, and Meta projected to spend around $700 billion in 2026, largely financed through external debt or equity
• Tech hardware valuations have reached a ceiling and are now 'prohibitively expensive', prompting UBS to recommend rotating capital into more defensive sectors like healthcare, utilities, or banks

US stock futures rose on February 11, 2026, driven by increasing market expectations of a Federal Reserve interest rate cut in the first half of 2026, despite concerns about weakening labor market data. The delayed US jobs report and key corporate earnings, including McDonald's, are the focal points for the trading session. Technical indicators show the Nasdaq 100 below its 50-day moving average while the Dow Jones and S&P 500 maintain bullish positions.

• Economists forecast US average hourly earnings growth to slow to 3.6% year-on-year in January from 3.8% in December, with unemployment expected to hold at 4.4% while labor participation drops to 62.3%.
• Dow Jones E-mini futures climbed 117 points, Nasdaq 100 E-mini rose 106 points, and S&P 500 E-mini gained 21 points during Asian trading hours.
• Key risks to the bullish outlook include potential Bank of Japan hawkishness (neutral rate of 1.5%-2.5%) that could trigger yen carry trade unwinding, similar to mid-2024 market disruptions.

China's consumer price index rose just 0.2% year-over-year in January, missing the 0.4% forecast, while producer prices fell 1.4%, continuing over three years of factory-gate deflation. The weak inflation data signals persistent deflationary pressure despite China meeting its 5% growth target last year, prompting policymakers to signal looser monetary policy ahead of key parliamentary meetings next month.

• Consumer price growth of 0.2% significantly missed economist expectations of 0.4%, while month-over-month prices rose only 0.2% versus 0.3% forecast
• Producer price deflation has persisted for more than three years, weighing on manufacturer profitability amid tepid consumer confidence and a prolonged property downturn
• The People's Bank of China committed to 'appropriately loose' monetary policies to guide prices toward recovery, with new economic targets expected at parliamentary meetings in March

The U.S. housing market has cooled significantly, with annual home price growth slowing to just 0.9% in December 2025, the weakest pace since the post-Great Recession recovery. Several markets in the South and West experienced notable price declines, while some Midwest markets saw strong gains, indicating a shift from recent years' rapid price increases.

• Kahului-Wailuku, Hawaii saw the steepest decline at 8% year-over-year, with Texas and Florida markets also experiencing significant drops ranging from 5-7%
• Youngstown, Ohio led price growth at 15.9%, with Indiana markets (Terre Haute at 11.4%, Columbus and Muncie at 10.2%) among the hottest
• The slowdown suggests the market is stabilizing after extended imbalance, with future trajectory dependent on wage growth and buyer purchasing power recovery

U.S. stocks closed mixed on Tuesday, with the Dow Jones hitting its third consecutive record close at 50,188 (up 0.1%), while the S&P 500 fell 0.3% and the Nasdaq dropped 0.6%. Investors are exercising caution ahead of Wednesday's January jobs report and Friday's Consumer Price Index data, following weaker-than-expected retail sales figures that signaled cooling consumer spending.

• December retail sales came in flat versus expectations of a 0.4% rise, with analysts noting that 'consumer spending has finally caught up with consumer sentiment' in a negative way
• U.S. 10-year Treasury yields fell to 4.15%, their lowest level since mid-January, bolstering expectations of a potential Fed rate cut in June
• The Employment Cost Index rose 0.7% in Q4 with compensation costs up 3.4% year-over-year, the slowest pace since early 2021, indicating a moderating labor market without adding meaningful inflation pressure

NYSE reported consolidated short interest data as of January 30, 2026, showing total short positions across NYSE Group exchanges increased to 19.57 billion shares from 19.41 billion in the previous period. The report covers short interest positions across NYSE, NYSE Arca, and NYSE American exchanges.

• NYSE Group total short interest rose by 163.8 million shares (0.8% increase) to 19,574,031,046 shares from the previous settlement date
• The main NYSE exchange saw short interest increase to 16.36 billion shares from 16.22 billion, while NYSE Arca declined slightly to 2.30 billion from 2.31 billion
• A total of 5,698 securities had short positions across all NYSE Group exchanges, with 4,620 securities having positions of 5,000 shares or more

UBS downgraded the U.S. tech sector to neutral on Tuesday, citing concerns about slowing AI infrastructure spending and persistent uncertainty in the software industry. The investment firm warns that Big Tech's AI capex, which could reach $700 billion this year, may be nearing a peak after more than quadrupling over three years. This poses risks for chip makers like Nvidia and cloud infrastructure providers that have driven the recent bull market.

• UBS expects AI infrastructure spending growth to moderate soon, potentially hurting 'enabling layer' companies including Nvidia, AMD, and Broadcom that have benefited from the data center boom
• Software industry uncertainty stemming from AI disruption concerns (the 'SaaSpocalypse') is expected to linger, making it difficult for investors to assess growth rates and profitability of software firms
• Tech hardware segment faces headwinds from elevated valuations well above 5- and 10-year averages, setting a high bar despite recent strong smartphone sales driven by aging device inventory

The January jobs report, delayed due to a government shutdown, is expected to show minimal payroll growth of around 55,000 or potentially zero new jobs. Additionally, annual benchmark revisions could erase 600,000-900,000 previously reported jobs from the past year, significantly weakening the labor market picture and raising concerns about economic health.

• Economists forecast January payroll growth near zero to 55,000, down from December's modest gains, with unemployment expected to hold at 4.4%
• Benchmark revisions may eliminate 600,000-900,000 jobs from prior reports dating back to early 2024, with 2025 months already revised down by 624,000 total
• White House officials are preemptively lowering expectations, citing immigration policy impacts and AI-driven productivity gains that reduce hiring needs despite economic growth

U.S. stock indices turned negative on February 10, 2026, after Federal Reserve officials Lorie Logan and Beth Hammack suggested interest rates may already be at neutral levels, pushing back against market expectations for rate cuts. The Nasdaq 100 and S&P 500 declined as traders scaled back rate cut forecasts ahead of key inflation data releases.

• The S&P 500 fell 0.14% to 6,955.07 and Nasdaq Composite dropped 0.28% to 23,173.86, reversing earlier gains after Fed officials indicated no further rate cuts may be needed unless inflation falls or the labor market weakens significantly.
• Sector leadership shifted dramatically with Utilities (+1.83%) and Real Estate (+1.30%) leading gains while Financials fell 1.29%, the worst performer of the session.
• The Nasdaq 100 failed to break above its 50-day moving average at 25,651.50, creating technical vulnerability toward the 24,843.50 support level, while the S&P 500 faces potential reversal toward its 50-day MA at 6,937.25.

White House trade advisor Peter Navarro claims President Trump's tariff policies have vindicated market critics as the Dow surged past 50,000, recovering from an April sell-off that followed reciprocal tariff announcements. Navarro argues tariffs are part of a broader supply-side strategy combining tax cuts, deregulation, and energy policy that drives investment and productivity rather than inflation.

• The Dow recovered from near 38,000 in early April following tariff-driven panic to surpass 50,000, a trajectory Navarro says he predicted during the sell-off
• ISM manufacturing index rose above 50 for the first time since 2022, signaling economic expansion that Navarro attributes to the administration's 'four engines of growth' policy framework
• Navarro argues tariffs drive investment and productivity gains that support wage growth without inflation, urging investors to view monthly job gains around 50,000 as appropriate given immigration enforcement impacts

South Korean AI startup Wrtn plans to expand its interactive storytelling service to the U.S. by June 2025 and is targeting an IPO as early as 2028. The company expects to generate over $100 million in annualized revenue this year after launching in South Korea and Japan, and aims to reach $700 million by end of 2027.

• Wrtn's service differentiates from competitors like Character.AI by focusing on narrative-driven AI where users are protagonists in story worlds, rather than companion chatbots
• The platform recorded $70 million annualized revenue by end of 2025 with users spending about 2 hours daily and paying user retention rates above 70%
• Company secured 108 billion won ($73.6 million) in Series B funding in March 2025 and plans another funding round this year ahead of potential 2028 IPO in South Korea or the U.S.

U.S. stock markets showed mixed performance on February 10, 2026, with the Dow Jones hitting a new record high above 50,400 as investors rotated from technology into value sectors. The S&P 500 gained 0.32% approaching its all-time high while the Nasdaq rose 0.30% and tested its 50-day moving average, despite disappointing December retail sales data showing flat growth versus expectations of 0.4% increase.

• Consumer Discretionary led sector gains at +0.95%, with Disney up 2.72% and American Express rising 2.27%, while Communications lagged with a 0.85% decline
• Taiwan Semiconductor Manufacturing surged 3% to a record after posting its highest monthly revenue ever, exemplifying individual stock momentum
• December retail sales came in flat month-over-month versus expectations of 0.4% growth, signaling a sharp slowdown in holiday consumer spending from November's 0.6% increase

Morgan Stanley warns that AI-driven disruption in the software industry is creating risks in the U.S. credit market, where software companies account for $235 billion (16%) of the $1.5 trillion loan market. The concern centers on software firms' heavy exposure to lower-rated debt and accelerated maturity schedules, though near-term systemic disruption and default spikes are considered unlikely.

• 50% of software sector loans carry 'B- or lower' credit ratings, indicating higher default risk, with 26% rated 'CCC' and only 7% holding higher 'BB' ratings
• Software companies face a 'front-loaded maturity wall' with 46% of debt due within four years versus 35% for the broader market, creating acute refinancing risks if AI concerns materialize quickly
• Over 80% of software loans are issued by private companies and 78% are sponsor-backed, limiting access to financial data needed to assess AI disruption exposure

European markets showed hesitation on Tuesday, February 10, 2026, as major indices struggled to maintain their broader upward trends. The FTSE 100 was weighed down by BP's 4% drop after it paused its share buyback program, while the CAC 40 benefited from a luxury sector rebound led by Kering's 8% surge. The MIB 40 rallied on strength in STMicroelectronics driven by AI partnerships.

• FTSE 100 weakness attributed to BP tumbling over 4% after pausing buybacks, partially offset by Barclays rallying on a 13% annual profit jump and 12-year high bonus pool
• CAC 40's luxury sector rebounded with Kering surging over 8%, lifting LVMH and Hermès, though facing resistance at the 8,400 psychological level
• MIB 40 gained support from STMicroelectronics advancing on AI partnerships and cooling European bond yields, with technical support at 46,000 and the 50-day EMA near 44,900

US stocks opened higher on Tuesday with the Dow Jones Industrial Average jumping 239 points (0.5%) to reach a new all-time high, despite weaker-than-expected retail sales data. The S&P 500 and Nasdaq Composite each gained 0.1% as investors looked ahead to key jobs and inflation reports due later in the week.

• December retail sales came in flat versus expectations of 0.4% growth, with year-over-year sales rising only 2.4% compared to 3.3% in November, signaling slower consumer spending during the holiday season
• The S&P 500 reclaimed its 50-day and 100-day moving averages after briefly dipping below them last week, a technical signal that traders view as bullish
• Investors are now focused on the monthly US jobs report due Wednesday and the January consumer price index on Friday, which could shape Federal Reserve policy expectations

U.S. retail sales remained flat in December, falling short of economist expectations for a 0.5% increase according to the Dow Jones consensus. The disappointing data suggests weaker consumer spending during the crucial holiday shopping season, which could signal concerns about economic momentum.

• Retail sales showed 0% growth in December versus the 0.5% increase economists had forecast
• The miss indicates potential softness in consumer demand during the typically strong holiday retail period
• Weaker-than-expected retail performance may influence Federal Reserve policy decisions and economic outlook assessments

U.S. retail sales were unexpectedly flat in December 2024, missing economist forecasts of a 0.4% increase and signaling weaker consumer spending momentum heading into the new year. Core retail sales, which closely track GDP's consumer spending component, fell 0.1% and November's figures were revised downward, likely prompting economists to lower fourth-quarter GDP estimates.

• Retail sales showed 0% growth in December following a 0.6% increase in November, defying economist expectations of 0.4% growth
• Core retail sales (excluding autos, gas, building materials, and food services) declined 0.1% in December, with November's gain revised down from 0.4% to 0.2%
• Consumer saving rate fell to a three-year low of 3.5% in November as shoppers maintained spending despite economic concerns about tariffs and a softening labor market

US equity futures showed mixed signals on Tuesday, with Dow futures edging higher toward record territory while S&P 500 and Nasdaq futures remained flat. Investors are adopting a cautious stance ahead of key economic data including retail sales, jobs reports, and inflation figures that will test whether the economy can achieve a soft landing.

• The Dow reached a fresh record close while tech-heavy indices marked time, reflecting incremental advances rather than decisive breakouts as investors remain 'willing to stay long risk assets, but only just'
• A crowded economic calendar featuring retail sales data, US jobs report, and inflation figures will determine market conviction, with recent labor market cooling raising hopes for a softer landing but also increasing sensitivity to upside surprises
• Gold prices remain elevated as a hedge while Bitcoin has struggled to regain momentum, highlighting fragile confidence in speculative assets as markets await confirmation that growth can slow without breaking