Walmart’s latest earnings offer an important read on the U.S. consumer, as retail drives roughly 70% of the economy. Shares of $WMT had rallied into the report amid high expectations, partly fueled by rotation out of $AMZN. While quarterly results modestly beat estimates, guidance disappointed. Walmart projected fiscal 2026 EPS of $2.75–$2.85 versus $2.97 expected and sales growth of 3.5%–4.5%, below consensus. The stock fell on the outlook, though bullish commentary may stabilize shares after the initial drop. Management highlighted AI initiatives, including its shopping assistant, as drivers of efficiency and customer engagement.

Broader data painted a mixed but stable picture. Initial jobless claims came in lower than expected, consistent with Fed commentary that the labor market remains steady. However, recent Fed minutes signaled uneven progress on inflation and removed a clear timeline for returning to 2%, even mentioning the possibility of rate hikes. Despite speculation, the probability of hikes this year appears limited.

Geopolitical risks are rising as U.S. tensions with Iran escalate, with significant military buildup in the region. Outcomes range from a market relief rally if tensions ease to oil-driven volatility if conflict disrupts supply. Investors are closely watching $WMT, $AMZN, $XLE, $SPY, and $GLD ahead of key inflation and consumer data releases.

Software stocks remain at the center of AI-driven disruption, creating sharp winners and losers. Atlassian illustrates the volatility. Shares soared to nearly $483 in 2021 as momentum investors piled into seat-based software models during the pandemic hiring boom. The 2022 bear market erased much of those gains, and another AI-fueled rally in 2024–2025 faded as it became clear not all software firms benefit equally from artificial intelligence. TEAM has now fallen roughly 83% from its peak, underscoring structural vulnerability.

The key divide lies in business models. Likely AI winners tend to control proprietary enterprise data, serve large customers, command high switching costs, and monetize through consumption or outcome-based pricing. They often have regulatory moats, mission-critical integration, strong balance sheets, and embedded enterprise relationships. By contrast, firms reliant on workflow tools, public data, small-business clients, or seat-based licensing face commoditization and AI substitution risk, increasing churn and revenue pressure.

This shakeout presents opportunity as valuations reset and differentiation becomes clearer. Selectivity is critical, as performance will not move in a straight line.

Macro data offered support, with durable goods and housing starts beating expectations. Markets now await FOMC minutes and Friday’s PCE inflation data, both potential catalysts. Key stocks to watch include $TEAM, $MSFT, $CRM, $NOW, and $ORCL.

The Nasdaq 100 ETF $QQQ saw its recent rally attempt stall at key resistance before renewed buying emerged following softer-than-expected inflation data. Headline CPI rose 0.2% versus 0.3% consensus, while core CPI met expectations at 0.3%. The tame report sparked early optimism, with $QQQ approaching oversold territory on RSI.

Yesterday’s selling appeared orderly in blue-chip tech, but beneath the surface there was heavy damage in speculative momentum names. Margin calls forced liquidations across high-beta tech and spilled into precious metals, pressuring $GLD and $SLV as leveraged positions were unwound. The shakeout reflects fragile positioning after eight sessions in which 115 S&P 500 stocks dropped more than 7% in a single day — historically a warning sign for potential corrections.

Now the key question is whether the CPI-fueled bounce evolves into a sustained rally or fades. Crosscurrents remain strong. Speculation that President Trump may soften trade terms with China and reduce metal tariffs is adding to optimism. Meanwhile, Japan’s Prime Minister signaled the Bank of Japan may delay rate hikes, temporarily supporting U.S. AI-heavy flows.

Europe’s steady growth and Japan’s outperformance highlight global rotation trends. Key tickers to watch include $QQQ, $GLD, $SLV, $SPY, and $EWJ.

U.S. markets continue to grapple with AI-driven volatility as capital quietly rotates from the United States. While America still dominates artificial intelligence, heavy portfolio concentration in AI has made many investors overly U.S.-centric. With leading AI names such as Nvidia trading in a range, institutional money is increasingly diversifying into international markets to balance risk.

Year to date, several foreign ETFs have outperformed the Nasdaq 100. South Korea has led gains, benefiting from strong demand for memory chips amid AI-driven supply constraints and improving global industrial activity. Brazil has advanced on rising commodity demand tied to infrastructure and data center expansion. Mexico is gaining from shifting supply chains and tariffs on China. Thailand is rising on hopes of political stability following elections. Japan is moving higher on structural corporate reforms and stronger political leadership. Even Europe is outperforming due to heavier exposure to industrial, materials, and financial sectors.

This divergence highlights that popular U.S. tech stocks are lagging broader global opportunities. Meanwhile, gold’s resilience after a strong jobs report suggests some investors are hedging against elevated U.S. equity valuations.

Initial jobless claims were roughly in line with expectations, while CPI data tomorrow could shape rate expectations and near-term direction. Key tickers to watch include $QQQ, $NVDA, $EWY, $EWZ, and $EWJ.

U.S. markets rallied in early trading after the delayed January jobs report surprised to the upside, driving the S&P 500 toward a critical resistance level. Employers added 130,000 jobs, significantly beating expectations of around 70,000 and well above the modest growth seen in late 2025, while the unemployment rate fell to 4.3%. Average hourly earnings and hours worked also came in stronger than forecast, reinforcing signs of sustained labor market resilience and lifting investor sentiment.

The strength in the report has boosted optimism that economic activity remains solid, but it may complicate Federal Reserve policy. A robust labor market generally reduces the urgency for cutting interest rates, which had been anticipated by some traders. This dynamic could keep longer-term yields elevated and limit scope for easier monetary accommodation.

Timing and positioning remain key for equity reactions, as previous attempts to break through major technical barriers have failed. A breakout above resistance now hinges on whether this jobs surprise fundamentally shifts expectations for growth and rates.

In stocks, earnings reactions were mixed. Crypto-linked trading platforms underperformed after weak results, while several technology and infrastructure names reported upside surprises. Banking, cloud computing, and semiconductor sectors also saw differentiated outcomes, highlighting divergence within the market. Upcoming data releases, including initial jobless claims and CPI readings, could guide the next phase of market direction. Key tickers to watch include $SPY (State Street SPDR S&P 500 ETF), $JPM (JPMorgan Chase & Co), $NVDA (NVIDIA Corporation), $MSFT (Microsoft), and $HOOD (Robinhood Markets Inc.) .

A comparison of year-to-date performance highlights a sharp divergence between defensive consumer names and popular technology stocks. Retailer Walmart and chocolate maker Hershey have significantly outperformed widely held software names, underscoring how tech-heavy portfolios have struggled as sentiment toward speculative growth has deteriorated. While hype continues to dominate headlines around artificial intelligence, steady consumer businesses have quietly delivered stronger relative returns, reminding investors that performance does not always follow excitement.

Many momentum-driven portfolios remain heavily concentrated in software and SaaS stocks, leaving them vulnerable as fear shifts from missing out to becoming obsolete. This change in psychology has weighed particularly hard on software shares, while less glamorous sectors have benefited from stable demand and earnings visibility. The divergence reinforces the importance of diversification, disciplined profit-taking when positions become stretched, and avoiding excessive concentration in any single theme.

Recent economic data adds to the cautionary backdrop. Retail sales were weaker than expected, signaling pressure on the consumer despite the economy’s consumption-driven structure. Job growth has also moderated, and several high-impact data releases—including jobs and inflation—are approaching, which could increase volatility.

In the AI supply chain, Taiwan Semiconductor reported record monthly revenue growth, confirming strong demand for advanced chips even as equity markets reassess valuations. Overall, the environment favors balance and selectivity rather than aggressive positioning. Key stocks to watch include $WMT, $HSY, $ADBE, $CRM, and $TSM.

Gold has surged back above the $5,000 level, driven by a significant warning from China that is also weighing on an early stock market rebound from oversold conditions. Chinese authorities have advised domestic financial institutions to reduce existing exposure to U.S. Treasuries and limit new purchases. While China is framing the move as diversification rather than a loss of confidence, it is a meaningful shift given that Chinese banks are among the largest holders of U.S. government debt. This development has increased demand for perceived safe havens and added a new layer of geopolitical risk for equity markets.

Another major global catalyst is Japan’s historic election outcome, where Prime Minister Takaichi secured a parliamentary supermajority. Japanese stocks have rallied on expectations of political stability, closer alignment with the U.S., firmer policies toward China, and stronger support for Taiwan. The victory also has mixed implications for the yen carry trade, which remains critical for global capital flows, particularly into U.S. technology stocks. Increased defense spending is likely, potentially benefiting aerospace and defense sectors as Japan deepens strategic ties with the U.S.

In healthcare, regulatory pressure has intensified on copycat weight-loss drugs. FDA action has forced a reversal by one major seller, lifting established pharmaceutical players and highlighting regulatory risk in the space. Market attention remains focused on $GC_F, $EWJ, $NVO, $LLY, and $HIMS.

Markets are undergoing a notable sentiment shift, with recent price action highlighting how quickly investor psychology has turned. Amazon’s post-earnings selloff is being used as a broader market signal rather than a company-specific issue. Shares failed to clear key resistance and then dropped sharply on heavy volume, suggesting conviction selling. Despite the decline, technical indicators now show oversold conditions, which often precede short-term rebounds. The latest gap lower also raises the possibility of an exhaustion move rather than the start of a sustained breakdown.

The primary driver behind the weakness is not earnings alone, but investor concern over aggressive AI-related capital spending. The market’s mindset has clearly flipped: where higher investment once fueled rallies, it is now being punished. This change has pushed sentiment sharply negative across technology, software, precious metals, and digital assets, leaving several areas stretched to the downside.

Historically, the combination of oversold conditions and deteriorating sentiment has often created tactical trading opportunities, though risks remain elevated due to unstable market structures. A short-term bounce is possible if key levels hold, but durability is uncertain.

Outside of tech, healthcare pricing disruption is also in focus as new platforms promise lower drug costs, potentially reshaping distribution dynamics. Investors are closely watching reactions across $AMZN, $MSFT, $IGV, $GLD, and $BTC as markets search for footing.

Markets digested strong earnings alongside rising concerns about capital intensity as Alphabet’s results highlighted a broader theme. Earnings exceeded expectations, but shares retreated after management projected a massive increase in AI-related capital spending, far above consensus. Investors are reassessing whether the market should continue rewarding ever-higher investment levels, especially as ownership is crowded and sentiment had been extremely bullish going into the report. The post-earnings pullback suggests supply is outweighing demand, making Alphabet a key bellwether for the wider market’s risk appetite.

Volatility remains elevated across asset classes. Precious metals saw sharp, sudden declines driven by margin calls overseas, raising the risk of forced selling spreading to U.S.-based leveraged accounts. Similar dynamics continue to pressure cryptocurrencies, where repeated selloffs are reinforcing fragile sentiment. These cross-asset moves reflect unstable market structures, where positioning and leverage can amplify both downside and upside moves.

Economic data added another layer of uncertainty, with jobless claims rising unexpectedly, though weather effects may be a temporary factor. Meanwhile, disruption fears resurfaced in healthcare as new low-cost competitors challenge established weight-loss drugs, raising questions about pricing power and intellectual property enforcement.

Against this backdrop, investor focus is tightening on capital discipline, balance sheet strength, and positioning risk across names like $GOOG, $GLD, $SLV, $BTCUSD, and $HIMS.

Markets shifted sharply from optimism to caution as fears of AI-driven disruption rippled through software stocks. Salesforce serves as a clear example of this broader trend. After a strong rally fueled by AI enthusiasm, expectations around its AI agent platform proved too high, triggering institutional selling. A key support level that had held for months broke decisively, and heavy volume on the decline signaled distribution rather than routine profit-taking. The selloff spread across software, erasing roughly $300 billion in market value as fear overtook greed.

The immediate catalyst was rapid innovation from leading AI developers, raising concerns that large segments of enterprise software could be commoditized faster than expected. While the selling has been indiscriminate, it highlights a growing divide between companies vulnerable to disruption and those positioned to benefit as valuations reset.

Economic data added to volatility. Private-sector job growth came in well below expectations, while investors awaited services data after a surprisingly strong manufacturing report earlier in the week. Earnings reactions were mixed: chipmaker results disappointed, while strength in pharmaceuticals underscored rotation beneath the surface.

Market structure remains fragile, amplifying both rallies and selloffs. Defensive flows have also lifted precious metals, while cryptocurrencies continue to struggle below key levels. Investors are recalibrating risk across assets such as $CRM, $AMD, $LLY, $GLD, and $BTCUSD as AI uncertainty reshapes market leadership.