Markets Rotate Amid AI Fears: Economic Resilience Shines Through in the February 9-13, 2026 Weekly Recap from Nexus Wealth Management

Key Takeaways

• Major U.S. indexes posted their largest weekly declines of 2026: S&P 500 -1.4%, Dow Jones -1.2%, Nasdaq -2.1%
• Stronger-than-expected January jobs data (130,000 added, unemployment at 4.3%) and milder CPI inflation (+0.2% monthly, +2.4% yearly) underscored economic strength
• Healthy sector rotation lifted “old economy” areas — utilities surged +7.07%, materials +3.77%, real estate +3.86%
• AI disruption concerns pressured financials (-4.85%), technology, and logistics names (including sharp moves in freight brokers like C.H. Robinson)
• Fixed-income markets gained as Treasury yields eased; international developed equities (MSCI EAFE) actually edged higher
• Two practical steps for families: review diversification and revisit 401(k) allocations — areas where our Missoula team regularly assists clients through personalized wealth management and 401k benchmarking

A Week That Reminded Us: Markets Breathe, Economies Endure
The week of February 9-13, 2026, delivered a classic example of market digestion in action. U.S. stocks pulled back as investors rotated out of a handful of high-flying tech and software names amid fresh AI disruption fears. Yet the underlying economy refused to cooperate with the pessimists. Solid jobs and inflation data, combined with a clear shift toward defensive and value-oriented sectors, left diversified portfolios in far better shape than the headline indexes suggested. At Nexus Wealth Management, our research team sees this not as a warning sign but as a healthy rebalancing moment — exactly the kind of environment where thoughtful personal financial planning and regular portfolio reviews can add the most value for busy families in Missoula and across Montana.

The Numbers at a Glance: U.S. Equities Snapshot
The S&P 500 closed the week at 6,836.17, down 1.4%. The Dow Jones Industrial Average finished at 49,500.93, off 1.2%. The Nasdaq Composite fell 2.1% to 22,546.67 — its fifth straight weekly decline. Small-cap stocks (Russell 2000) actually outperformed on Friday’s rebound, a encouraging sign that the broadening we’ve been watching is taking hold. These moves were not driven by recession fears or weak fundamentals; they reflected investors rotating capital after several years of narrow leadership.

Fixed Income: A Quiet Win for Bond Investors
Cooler-than-expected January CPI data (headline +0.2% month-over-month, core in line with forecasts) sent Treasury yields lower. The 10-year note yield dropped roughly 5 basis points to around 4.05%, boosting bond prices. Intermediate and long-duration Treasuries, as well as investment-grade corporates, posted modest gains. This environment is especially helpful for the many families we serve at Nexus Wealth Management who maintain balanced allocations — the fixed-income portion of a portfolio often acts as the stabilizer when equities experience short-term chop.

Global Markets: Relative Resilience Outside the U.S.
While U.S. large-caps lagged, international developed equities (MSCI EAFE) managed a small gain of about 0.5% for the week. Emerging markets were mixed but generally held up better than the Nasdaq, benefiting from the same rotation into materials and real assets that lifted domestic cyclicals. This divergence reinforces a core tenet of the wealth management strategies we build for clients: true diversification across borders can smooth the ride when U.S. leadership narrows or rotates.

Sector Winners and Losers: The Rotation in Full View
Top Performers

• Utilities: +7.07% — the clearest winner as money sought defensive, income-oriented names amid lower yields
• Materials: +3.77%
• Real Estate: +3.86%

These “old economy” areas outperformed as investors looked beyond the AI trade.

Biggest Losers

• Financials: -4.85% — pressure from AI automation fears in wealth management, insurance brokerage, and related services
• Transportation & Logistics — highlighted by sharp declines in freight brokers (C.H. Robinson was among the notable movers after an AI platform announcement sparked sector-wide concerns)
• Technology/Software — continued softness from earlier “SaaS-pocalypse” fears

This rotation is the market’s way of saying “we’re still bullish on AI long-term, but not every company will win equally.”

What Drove the Resilience: Three Economic Bright Spots
First, the January employment report beat expectations with 130,000 jobs added and the unemployment rate ticking down to 4.3%. This data, released mid-week, reminded investors that the consumer remains on solid footing — critical for the middle-class households we work with every day in Missoula.

Second, January CPI came in softer than forecast. The milder reading eased bond yields and kept the door open for measured Federal Reserve policy later in the year. Our team at Nexus views this as supportive for both stock and bond allocations in well-diversified plans.

Third, the sector broadening itself was a positive. When leadership expands beyond a handful of mega-cap tech names, history shows rallies tend to become more durable — good news for families whose portfolios were built with balance in mind.

The Pressures That Created the Pause: Three Areas to Watch
AI disruption fears spread from software into financial services, logistics, and certain real-estate segments. This is a normal part of markets pricing in transformative technology; many companies (including incumbents like C.H. Robinson) are already deploying AI to strengthen their own moats.

The Nasdaq’s heavier decline reflected the concentrated nature of recent leadership. After multi-year outperformance, a period of digestion is healthy and often creates rebalancing opportunities.

Volatility rose modestly (VIX moved into the low 20s), but remained well below levels seen during actual crises. Nothing in the economic data suggested the expansion is in jeopardy.

Practical Steps for Your Family’s Financial Plan
As we move further into 2026, now is an excellent time to review diversification. If your portfolio became overweight in a few mega-cap names during the AI rally, this week’s rotation is a gentle reminder to ensure you’re positioned to participate wherever leadership emerges next.

Second, carve out time to double-check your 401(k) or investment allocations. As a local Missoula financial advisory team, Nexus Wealth Management regularly helps clients with 401k benchmarking and holistic personal financial planning reviews. A quick alignment of contributions, risk level, and beneficiary designations can deliver real peace of mind — especially when markets are rotating.

Looking Ahead: Cautiously Constructive
Our research team at Nexus Wealth Management remains cautiously constructive. Resilient jobs and inflation data, combined with healthy sector broadening and low recession odds, support the base-case view of continued economic expansion. Valuations are no longer cheap, so selectivity and diversification matter more than ever.

Whether you’re a busy professional, a parent juggling schedules, or simply want a fresh set of eyes on your personal or company 401(k) plan, the team at Nexus Wealth Management is here to help. Reach out — we’d love to show you why we're the top reviewed financial firm in Montana and discuss how a tailored wealth management approach can help your family thrive with greater confidence.

About the Author
Robert Montes is the lead Portfolio Manager at Nexus Wealth Management. He is responsible for analyzing market conditions, assessing economic trends and developing wealth management strategies and recommendations that help investors work toward accomplishing their financial goals. Robert’s team works with over 700 households, managing 1100+ accounts and is one of the top rated wealth management firms in Montana. He is an avid Jiu Jitsu practitioner and former Army Ranger.

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