NEW YORK, Feb 13, 2026, 08:33 (EST)
- January saw U.S. consumer prices edge up 0.2%, while annual inflation cooled to 2.4%.
- After the inflation numbers dropped, stock index futures trimmed their earlier losses.
- Global equities wobbled, still unsettled after Thursday’s tumble in tech stocks sparked by concerns over artificial intelligence.
Consumer prices in the U.S. climbed 0.2% for January, according to government figures released Friday. That nudged annual inflation down to 2.4%. Stock index futures trimmed earlier losses following the data. Stripping out food and energy, core CPI came in at a 0.3% monthly increase and 2.5% over the last year. (Bureau of Labor Statistics)
This week’s inflation data arrives with stocks on edge. Investors are combing through signals for clues on when the Federal Reserve could lower rates next—especially after last week’s unexpectedly hot jobs report. Heading into Friday, futures put the odds of a June cut near 70%, with markets penciling in about 60 basis points of easing for the year. Deutsche Bank analysts, though, cautioned a fresh “hawkish” reading might easily upend those bets. (Reuters)
The battle around artificial intelligence (AI) profits keeps heating up: who’s cashing in, who’s getting squeezed, and who’s at risk of being upended. Thursday saw the Dow tumble 669.42 points. S&P 500 lost 1.57%. The Nasdaq fared worse, slumping 2.03%, as tech and transport names got dumped and investors shuffled into defensive sectors like utilities. “We see this as a ‘prove it’ year for AI,” said Jack Herr, primary investment analyst at GuideStone Funds. (Reuters)
Cisco got things started this week with its quarterly results. Adjusted gross margin came in under analyst expectations, thanks to a spike in global memory prices driven by AI infrastructure demand. CEO Chuck Robbins told investors they’re looking at more than $5 billion in AI orders and plan to book over $3 billion in related revenue from hyperscalers for fiscal 2026. (Reuters)
AppLovin posted December-quarter revenue of $1.66 billion, beating projections, but the company also pointed to a more challenging ad environment as platforms battle over ad budgets. Jefferies analysts noted that Meta’s aggressive bids for Apple’s iOS traffic may ratchet up auction pressure and squeeze margins for everyone. (Reuters)
Sentiment was already cooling overseas. The MSCI all-country index slipped 0.3% Friday morning. Gold and silver managed to rebound after sharp declines, but oil edged down; OPEC+ was considering bringing back output hikes starting in April, according to three Reuters sources. “Markets have had a healthy correction,” said Arun Sai, senior multi-asset strategist at Pictet Asset Management. (Reuters)
European stocks didn’t move much — the STOXX 600 barely budged in early deals — as traders tried to make sense of AI-driven swings and a batch of uneven results. Safran rallied, buoyed by its forecast for stronger revenue and profit in 2026. L’Oreal, on the other hand, lost ground after falling short of sales growth expectations for the fourth quarter. “AI overinvestment, valuations and disruption” are stoking anxiety, said Kyle Rodda, senior market analyst at Capital.com. (Reuters)
Asian markets lost ground, with the Nikkei down 1.2% in Japan and Hong Kong’s Hang Seng off by 1.7%. SoftBank tumbled 8.9% despite turning in a $1.6 billion profit last quarter. Fresh concerns around which firms might get left behind as AI technology expands shaped the day’s session. (AP News)
Plenty of AI-linked names were in the red, but not all. Applied Materials surged in premarket hours after it projected second-quarter revenue and earnings ahead of analyst estimates. CEO Gary Dickerson credited “the acceleration” of AI computing investments for the strong quarter. Chip-equipment rivals ASML and Lam Research climbed as well. (Reuters)
The fresh CPI print isn’t going to settle the debate. Price pressures could easily resurface, and if heavy AI investment keeps slicing into margins without driving profits, investors might keep spinning their wheels in this choppy market—ditching crowded trades and piling into whatever looks least risky that day.
