Focus: US

Focus: US Market Close: Fri, 13 February 2026 Weekly Insights

US inflation cooled to 2.4% in January, easing pressures from gasoline and used vehicles, which initially lifted stocks before AI-related concerns contributed to the worst weekly performance since November. Federal Reserve officials emphasized that further rate cuts depend on sustained progress toward the 2% target amid sticky services inflation.

Major US indices ended the week lower, with the S&P 500 and Russell 1000 posting modest daily gains that failed to offset broader declines, as investors rotated into defensive sectors like utilities and energy while technology and financials lagged. Volatility rose notably week-to-date, reflecting uncertainty around AI disruptions and upcoming policy decisions, including potential new capital rules for large banks. Equal-weighted sector performance highlighted strength in utilities and energy, contrasting with weakness in financials and health care.

This environment suggests opportunities for traders in mean-reversion plays amid heightened volatility, particularly where medium-term signals indicate potential bounces in underperforming names. Investors should monitor inflation trends and Fed commentary for cues on rate path, favoring defensive positioning until clearer bullish momentum emerges.