Weekly Market Commentary

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WEEK OF FEB. 9 THROUGH FEB. 13, 2026

The S&P 500 index slipped 1.4% this week as declines led by the financial and communication services sectors outweighed utilities-led gains.

The S&P 500 ended Friday's session at 6,836.17. The index is down 1.5% for the month.

The week's decline pushed the S&P 500 into the red for the year as the market benchmark is now down 0.1% for 2026.

While many companies reported quarterly results above analysts' expectations for the just-ended quarter, investors were concerned by some companies' guidance for the coming quarters.

Cisco (CSCO) was among them. The networking equipment maker had better-than-expected results for the quarter ended Jan. 24, but it projected a sequential decline in adjusted gross margin for the current quarter amid rising memory prices. Shares fell 9.4% on the week.

In economic data, a delayed report on January payrolls showed the US economy added more jobs than expected in January, while the unemployment rate fell versus Wall Street's views for it to hold steady.

The US seasonally adjusted consumer price index, a measure of inflation, rose by 0.2% in January, tamer than the expected 0.3% increase and a 0.3% gain in December. Still, the core CPI, which excludes food and energy prices, matched the consensus estimate for a 0.3% increase; this compared with a 0.2% rise in December.

The financial sector had the largest percentage drop of the week, sliding 4.8%, followed by a 3.5% decline in communication services, a 2.1% fall in consumer discretionary and a 2% drop in technology. Health care also edged lower.

The hardest-hit stocks in the financial sector included Arthur J. Gallagher (AJG), which lost 14%, followed by Ameriprise Financial (AMP) and Willis Towers Watson (WTW), each down 13%.

In communication services, Netflix (NFLX) shares fell 6.5% as Ancora Holdings, which holds a roughly $200 million interest in Warner Bros. Discovery (WBD), issued a presentation laying out "strong opposition" to the proposed merger of Warner Bros. with Netflix.

On the upside, utilities jumped 7.1%, followed by a 3.9% rise in real estate and a 3.7% gain in materials. Energy, consumer staples and industrials also rose.

Vistra (VST) topped the utilities sector's gainers, climbing 15%, amid an investment rating upgrade from Jefferies. The firm now has a buy rating on Vistra's stock, up from hold, and raised its price target on the stock to $203 per share from $191.

Iron Mountain (IRM) was the best performer in real estate, rising 15%. The company reported Q4 adjusted funds from operations and revenue above analysts' mean estimates and issued upbeat forecasts for the full year.

The US stock market will be closed on Monday for Presidents Day.

Next week's earnings reports will include Medtronic (MDT), Palo Alto Networks (PANW), Walmart (WMT), Deere (DE) and Alibaba Group (BABA).

Economic data will feature reports on Q4 gross domestic product as well as the December personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge. Delayed reports on November and December housing starts and new home sales will also be released.

Provided by MT Newswires.