Stock Market News Today: AI Jitters Rattle Tech as Fed Minutes and PCE Loom
The stock market closed out a volatile week on a cautious note, with major indices posting losses as investors grappled with two competing narratives: cooling inflation data and escalating fears over artificial intelligence-driven disruptions. As we look ahead to the week of February 16, all eyes are on the Federal Reserve's meeting minutes, crucial inflation data, and a heavy slate of corporate earnings.
Here is your complete briefing on today's stock market news and what to watch in the days ahead.
📉 Weekly Market Wrap: Tech Takes a Hit
U.S. stocks ended the week lower as investors rotated away from mega-cap technology names and sought safety in other sectors. The S&P 500 fell 1.28% for the week, the Nasdaq 100 dropped 1.27%, and the Dow Jones Industrial Average slid 1.15% .
On Friday, February 13, the market showed tentative signs of stabilization. The S&P 500 barely budged, the Dow rose 48 points (0.1%), and the Nasdaq slipped 0.2% . The mixed session followed a Thursday selloff that ranked among the worst since Thanksgiving .
Inflation Data Offers Mixed Signals
Friday brought encouraging news on the inflation front. The Consumer Price Index (CPI) rose just 0.2% month-over-month and 2.4% year-over-year—slightly below the expected 2.5% annual figure . Core CPI, which excludes volatile food and energy prices, also moderated .
However, the softer inflation numbers weren't enough to fully reassure markets. Traders slightly increased expectations for a June rate cut to 52.3% from 48.9% following the report , but broader concerns about AI disruption continued to weigh on sentiment.
AI Disruption Fears Deepen
The tech sector remains on edge following a week of dramatic moves. Amazon (AMZN) posted its ninth straight day of losses—the longest losing streak since 2006—following weak guidance and concerns about the company's plan to spend close to $200 billion on AI-related capital projects .
Microsoft's AI chief, Mustafa Suleyman, added to the anxiety by claiming that "most, if not all professional tasks" could be automated within 12 to 18 months, with healthcare seen as an early area of impact . This sparked a broader reevaluation of how AI might disrupt industries beyond technology .
All seven of the "Magnificent Seven" mega-cap stocks closed lower on the week :
Apple (AAPL) dropped 5%
Amazon (AMZN) slid 2.20%
NVIDIA (NVDA) fell 1.64%
Intel (INTC) decreased 3.75%
📊 Stocks That Made Headlines
Top Gainers
Fastly, Inc. (FSLY): Surged over 72% after reporting strong revenue growth tied to AI demand .
Rivian Automotive (RIVN): Jumped 26.64% after strong quarterly results and plans to begin deliveries of its new R2 SUV later this year .
Applied Materials (AMAT): Gained over 8% after a strong quarter that pushed analysts to raise price targets .
Coinbase Global (COIN): Climbed 16.57% as stablecoin revenue hit a record, despite mixed earnings .
Notable Decliners
Safe-Haven Assets Surge
As uncertainty gripped equity markets, investors rotated into traditional safe havens:
Gold: Jumped above $5,000, rising 1.60% to $5,027.70 .
Treasury Yields: The 10-year Treasury yield eased to about 4.09% .
🔮 The Week Ahead: Fed Minutes, PCE, and Key Earnings
The coming week is packed with market-moving events that could shape sentiment for the remainder of February.
Key Economic Data
Supreme Court Watch
On February 20, the Supreme Court is expected to issue opinions, including a potential ruling on Trump's "Liberation Day" tariff policy. Any significant decision could impact global trade and market sentiment .
Earnings to Watch
The third week of February brings another full earnings calendar:
Walmart's report on Thursday is particularly significant as a barometer of U.S. consumer spending power and sentiment .
Market Holidays
Monday, February 16 is Presidents' Day. The New York Stock Exchange and Nasdaq will be closed .
🧠 Expert Outlook: What Analysts Are Saying
Cautious Optimism on the Correction
Mark Hackett, Chief Market Strategist at Nationwide, advises against overreacting to February's pullback: "Given the strong rally since April last year, the correction seen in February should not be overinterpreted." He notes the market is showing signs of broadening beyond large-cap US growth stocks to international equities, value stocks, and small caps .
AI Concerns May Be Overdone
Daniel Skelly, Head of Market Strategy at Morgan Stanley, suggests the initial sell-off in software stocks driven by AI concerns may have been exaggerated. "In the medium to long term, a variety of industries and individual companies stand to benefit from AI," he said .
Sector Rotation Ahead
Vinod Nair, Head of Research at Geojit Investments, predicts market leadership may rotate: "With IT and metals facing persistent structural and external headwinds, market leadership may rotate toward domestically oriented sectors such as banking, autos, and select consumption-driven segments" .
Remaining Cautious
Jay Woods, Chief Market Strategist at Freedom Capital Markets, struck a more cautious tone: "Ultimately, we will enter a phase where the price advantage of tech stocks becomes more apparent. We are waiting for a clear signal that major risks have dissipated from the market. At this point, such a reassuring signal has yet to emerge" .
Scott Ladner, Chief Investment Officer at Horizon Investments, observed: "The market is clearly reacting in a way that suggests many industries will be valued much lower than they are now. While I think this may be somewhat exaggerated, investors are clearly selling first and asking questions later" .
📈 Global Markets Context
Indian Markets
The BSE Sensex slumped 953.64 points (1.14%) for the week, while the NSE Nifty dropped 222.6 points (0.86%) . Both indices closed on a negative note as the global tech selloff weighed on sentiment. The rupee settled at 90.66 against the U.S. dollar .
Asian Markets
Japan's preliminary Q4 GDP, due Monday morning Asia time, will be closely watched. An upside surprise typically supports cyclical stories and strengthens the yen; a downside surprise raises caution and intensifies demand for safe-haven assets .
Commodities
WTI Crude Oil: Held near $63 a barrel
🏁 The Bottom Line
The stock market enters the week of February 16 at a crossroads. Cooling inflation data supports the case for eventual Fed rate cuts, but AI disruption fears and valuation concerns in mega-cap tech are prompting a broader market rotation. With Fed minutes, PCE data, and Walmart earnings on deck, volatility is likely to persist.
For investors, the key takeaway from analysts is clear: don't overreact to the correction, but stay nimble. The market is broadening out, and opportunities may emerge in sectors that were overlooked during the tech-driven rally.
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