Overview
U.S. stocks closed mixed on Wednesday, February 11, 2026. I characterize the session as a collision between strong labor data and renewed AI disruption fears. Early gains faded as concerns resurfaced about AI’s potential to displace traditional industries.
Market Highlights
- Strong employment data initially supported equities.
- Software stocks came under renewed pressure amid expanding “AI fear trade.”
- Cyclical and AI infrastructure-related names outperformed.
| Nasdaq | S&P 500 |
| dow jones | won/dallar |
Sector Moves
- Vertiv: surged 24% after posting earnings above expectations.
- Caterpillar, Eaton and other industrial names advanced.
- Several key software stocks remained under pressure.
Labor Data Details
- Nonfarm payrolls increased by 130,000.
- Unemployment rate declined to 4.3%.
- However, prior-year data were sharply revised lower, marking one of the weakest annual gains since 2003 outside recession periods.
Rate Expectations
Following the report, markets pushed expectations for the next Fed rate cut from June to July. Attention now shifts toward the upcoming CPI release.
Bottom Line
In my view, the market is entering a transition phase where stable macro data coexist with unresolved AI-related structural concerns. Direction from here will likely depend on inflation trends and clarity around the rate path.
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