Stocks fell last week as investors reacted to mixed economic data and concerns over signs of broadening AI disruption of business models. The Standard & Poor’s 500 Index fell 1.39 percent, while the Nasdaq Composite Index declined 2.10 percent. The Dow Jones Industrial Average slid 1.23 percent. On the other hand, the MSCI EAFE Index, which tracks developed overseas stock markets, rose 1.92 percent.1,2 AI Disruption FearsBig tech started last week back in the driver’s seat, leading the Nasdaq and S&P 500 to modest gains as investors appeared cautiously optimistic about the economy and Q4 corporate reports.3 Stocks slid modestly on Tuesday after December retail sales were flat, sparking some anxiety about the economy. Investors also fretted about the impact of artificial intelligence (AI) on financial stocks.4 A stronger-than-expected jobs report initially sparked a rally midweek, but momentum quickly faded as investors dug deeper into the numbers. Stocks then came under pressure as AI disruption fears spread across several industry groups. Traders worried that AI would disrupt certain business models and possibly increase unemployment.5 Markets rebounded following Friday’s Consumer Price Index (CPI) reading, which gave investors another economic data point to cheer as the pace of inflation slowed in January. Equity markets continue to be powered by solid earnings growth and a shift toward AI driven productivity gains, with companies in many sector contributing rather than just the mega-cap company leaders. While valuations remain elevated, they are supported by strong profit growth, suggesting markets still have a firm fundamental foundation, even as volatility persists. The economic backdrop for 2026 remains constructive, with easing inflation, bifurcated labor markets, and rising productivity supporting strong fundamentals even as volatility resumes. While policy driven headlines-from Fed leadership changes to election year tensions-may spark short term market swings, long term success still hinges on staying disciplined, diversified, and committed to the broader strategy employed for our valued clients of Castle Financial. Gold and other precious metals gained as investors sought stability amid geopolitical and fiscal uncertainty, reinforcing their role as a form of trust based store of value rather than simple inflation hedges. Over in the evolving Digital World, as onchain markets expand across Liquid Staking Tokens (LSTs), stablecoin lending, and tokenized treasuries, a growing share of crypto capital is now concentrated in yield-bearing assets that generate real cash flows and another reason to own Ethereum over Bitcoin. With Friday's rally in crypto currencies, Bitcoin and Ethereum managed to almost hold their dollar equivalent values for last week. However, considering the recent interviews of Michael Saylor (Strategy company Founder) and Phong Le (Strategy company CEO) the optics are not good for Bitcoin's future - a lot of fantasy and double-talk apparent by the interview questions and responses. Fact is, we have witnessed rallies in Bitcoin being sold into since coming off the all time highs in Bitcoin and let's see if that continues. Again, my apologies to HODLers reading this update, but I never drank the Bitcoin Kool-Aid. Unfortunately, IMHO I think Bitcoin may go the way of MySpace as "Just because you are first does not mean you will last". Stay tuned. . . . Does your advisor understand the changing dynamics of the worldwide financial markets and ways to build wealth in the new evolving global digital financial age? Give us a call at 732-888-4994 if you are not already a valued client of Castle Financial for an introductory call with a Certified Digital Asset Advisor among my many professional credentials. |
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Source: YCharts.com, February 14, 2026. Weekly performance is measured from Monday, February 9, to Friday, February 13. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points. |
Good News, Bad NewsInvestors focused on three key economic reports out last week: retail sales, jobs, and inflation. Here are the key good news/bad news takeaways from each report: Retail sales: Consumer spending was flat in December, below expectations and below November’s 0.6 percent growth. Good news: Given that two-thirds of the economy runs on consumer spending, the Fed may reconsider its wait-and-see stance on raising rates.7 Employment: January job growth was mostly concentrated in a single sector. Plus, downward revisions showed employers only added 181,000 jobs last year—70 percent fewer than initially thought. There was essentially no job growth in the back half of 2025. Good news: January job growth was more than double what economists expected—the biggest gain in over a year. The unemployment rate also edged down.8 Inflation: Inflation was cooler-than-expected but remains above the Fed’s target. Good news: The CPI’s 2.4 percent year-over-year growth in January marked a drop from December’s 2.7 percent annual pace.9 This Week: Key Economic DataMonday: Markets closed for Presidents’ Day Tuesday: Empire State Manufacturing Survey Wednesday: Housing Starts (Nov., Dec.). Building Permits (Nov., Dec.). Durable Goods (Dec.). Trade Balance in Goods (Dec.). Retail Inventories (Dec.). Wholesale Inventories (Dec.). Federal Open Market Committee Meeting Notes (Jan.). Thursday: Weekly Jobless Claims. Trade Deficit (Dec.). Pending Home Sales. Minneapolis Fed President Neel Kashkari speaks. Friday: Gross Domestic Product (GDP), Q4. Personal Consumption Expenditures (PCE) Index (Dec.). New Home Sales (Nov., Dec.). Consumer Sentiment. Source: Investors Business Daily - Econoday economic calendar: February 13, 2026. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision. This Week: Companies Reporting EarningsTuesday: Medtronic (MDT), Palo Alto Networks, Inc. (PANW), Constellation Energy Corporation (CEG), Cadence Design Systems, Inc. (CDNS) Wednesday: Analog Devices, Inc. (ADI), Booking Holdings Inc. (BKNG), Carvana Co. (CVNA), DoorDash, Inc. (DASH), Moody’s Corporation (MCO) Thursday: Walmart Inc. (WMT), Deere & Company (DE), Newmont Corporation (NEM), The Southern Company (SO) Source: Zacks, February 13, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice. |
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"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 |
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Be On Alert for IRS ScamsThe Internal Revenue Service is on a constant lookout for tax-related scams. In most cases, “phishing” scams are bogus phone calls and emails that claim to come from the IRS.
This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional. Tip adapted from IRS.gov10 |
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Loving Yourself FirstThe rise of self-care over the past decade has brought attention to the concept of loving oneself – the basic philosophy behind it being that if we love and take care of ourselves with intention, the happier and healthier we’ll be, and all the people in our lives will benefit. Loving ourselves isn’t always easy. And it doesn’t mean always being overly indulgent, but rather making choices that help support our overall well-being. For some people, that may look like taking time to relax if they have a lot of stress. For others, it can be making a to-do list to organize and accomplish tasks if they tend toward procrastination. It can also mean being more self-aware and cheering ourselves on if we’re often overly harsh or being more introspective and searching for ways to improve if we are myopic about our shortcomings. All these things and many more not mentioned are intentional actions we can take to be our best selves. Take some time to reflect on the ones you love. Just make sure you don’t forget about the one you should love the most. Tip adapted from Everyday Health11 |
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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. |
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The Milford Sound fiord Fiordland National Park, New Zealand |
Footnotes And Sources1. WSJ.com, February 13, 2026 |
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
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