Markets Navigate Mixed Data, AI Disruption Fears, and a Late Week Rebound

Week Ending February 13, 2026

Markets finished the week lower as investors worked through softer consumer data, mixed employment figures, and growing concerns that artificial intelligence could disrupt traditional business models across multiple sectors.

Despite periods of volatility, the tone was more recalibration than panic. Investors appeared to reassess valuations and sector exposure rather than exit markets broadly.

U.S. markets ended lower, international markets moved higher, and Canadian equities declined modestly but remained relatively resilient.

Market Overview

Weekly Market Performance (February 9, 2026 to February 13, 2026)

• S&P 500: -1.39%
• Nasdaq Composite: -2.10%
• Dow Jones Industrial Average: -1.23%
• MSCI EAFE International Developed Markets: +1.92%
• S&P TSX Composite Index Canada: -0.75%

U.S. Markets: AI Disruption Fears Broaden

Big technology stocks started the week back in the driver’s seat, leading the Nasdaq and S&P 500 to modest early gains as investors remained cautiously optimistic about the economy and fourth quarter corporate reports.

Sentiment shifted Tuesday after December retail sales came in flat, below expectations and below November’s 0.6 percent growth. Because consumer spending drives roughly two thirds of economic activity, the report sparked renewed concerns about growth momentum. At the same time, investors began questioning how artificial intelligence could impact financial stocks and other established industries.

Midweek, a stronger than expected jobs report initially sparked a rally. However, momentum faded as investors dug deeper into the data. January job growth was concentrated in a single sector, and downward revisions showed employers added only 181,000 jobs last year, roughly 70 percent fewer than initially reported. There was essentially no job growth in the back half of 2025.

Markets then came under broader pressure as AI disruption fears spread across several industry groups. Traders worried that accelerating automation could challenge existing business models and potentially increase unemployment in certain areas.

By Friday, stocks rebounded following the Consumer Price Index reading. Inflation rose 2.4 percent year over year in January, down from 2.7 percent in December. While still above the Federal Reserve’s target, the cooler reading gave investors another constructive data point and helped stabilize markets into the close.

Overall, the week reflected repositioning as investors balanced innovation optimism with economic caution.

Canada and the TSX

Canadian markets declined approximately 0.75 percent during the week. The TSX experienced less volatility than the Nasdaq due to its lower exposure to high growth technology stocks.

Energy and materials offered pockets of support, while financials remained relatively steady despite global concerns about AI’s impact on business models. Investors are also monitoring domestic economic data and Bank of Canada policy expectations as inflation trends lower and growth moderates.

Canada’s diversified sector mix continues to provide balance, particularly during periods when technology heavy markets experience greater swings.

Sector Snapshot

• Financials: Stable but sensitive to economic growth expectations
• Energy: Supported by steady commodity prices
• Materials: Helped by resilient global demand trends
• Technology: Pressured as AI disruption fears broadened

What Is Driving the Market

Several familiar themes continue to influence market behaviour:

• Retail sales softness raising questions about consumer strength
• Mixed employment data with significant revisions
• Inflation easing but still above target
• AI innovation prompting reassessment of traditional industries

Why This Matters

Weeks like this highlight how quickly market narratives can shift. Innovation remains a powerful long term driver of growth, but periods of transition can create volatility as business models evolve.

Key takeaways

• Short term volatility is normal during structural change
• Economic data is being scrutinized closely
• Innovation creates both opportunity and disruption
• Staying disciplined matters more than reacting to headlines

Economic Snapshot

Investors remain focused on whether inflation can continue easing without triggering a sharper economic slowdown. Employment trends, GDP growth, and consumer confidence will be key inputs as markets assess the path forward.

This Week: Key Economic Data

Monday, February 16th

• Markets closed for Presidents’ Day

Tuesday, February 17th 

• Empire State Manufacturing Survey

Wednesday, February 18th 

• Housing Starts
• Building Permits
• Durable Goods
• Trade Balance in Goods
• Retail Inventories
• Wholesale Inventories
• Federal Open Market Committee Meeting Notes

Thursday, February 19th 

• Weekly Jobless Claims
• Trade Deficit
• Pending Home Sales
• Remarks from Minneapolis Fed President Neel Kashkari

Friday, February 20th

• Gross Domestic Product Q4
• Personal Consumption Expenditures Index
• New Home Sales
• Consumer Sentiment

This Week: Companies Reporting Earnings

Tuesday, February 17th

• Medtronic
• Palo Alto Networks
• Constellation Energy
• Cadence Design Systems

Wednesday, February 18th

• Analog Devices
• Booking Holdings
• Carvana
• DoorDash
• Moody’s

Thursday, February 19th

• Walmart
• Deere and Company
• Newmont Corporation
• The Southern Company

"I can make it through the rain, I can stand up once again on my own, and I know that I’m strong enough to mend."
– Mariah Carey

Olivia throws a softball as hard as she can, and even though it doesn’t touch anything and nobody touches it, the softball comes right back to her. How is this possible?

^{Last Week's Riddle: It can be less thick than your finger when it folds, yet as thick as what it carries when it holds. What is it?
Answer: A sack}

Our administrator, Tanya, spent the weekend living out one of her lifelong dreams meeting Tom Welling, best known as Superman in Smallville.

Footnotes and Sources

1. WSJ.com, February 13, 2026
2. Investing.com, February 13, 2026
3. CNBC.com, February 9, 2026
4. CNBC.com, February 10, 2026
5. CNBC.com, February 12, 2026
6. WSJ.com, February 13, 2026
7. CNBC.com, February 10, 2026
8. WSJ.com, February 11, 2026
9. WSJ.com, February 13, 2026
10. IRS.gov, May 29, 2023
11. Everyday Health, August 25, 2025

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