Reviewed by Gotrade Internal Analyst
Gotrade News - Dow Jones futures are stabilizing this Friday morning as investors brace for the January CPI inflation report. This data drop is the main event that could decide if the Fed keeps rates tight or starts to chill.
The slight recovery comes after a nasty selloff yesterday, driven by growing fears of AI disruption. Sectors like software, real estate, and financial services took the hardest hit from the negative sentiment.
Key Takeaways:
January's CPI report is the key signal for the Fed's next move amid market uncertainty.
AI disruption fears are triggering a rotation from tech stocks into defensive plays like consumer staples.
Solid earnings from Rivian and Applied Materials offer a glimmer of hope despite the volatility.
This bounce-back follows a rough session where the Dow Jones Industrial Average tanked by 669 points. The pressure came from rising anxiety that AI is coming for traditional business models in software and finance.
Jay Woods from Freedom Capital Markets noted that AI is now acting as a drag on these stocks. Previously, the AI hype train was exactly what pushed market valuations to such dizzying heights.
Jade Rahmani, an analyst at Keefe, Bruyette & Woods, sees investors bailing on labor-heavy business models. These high-cost sectors are looking increasingly vulnerable to the efficiency gains offered by modern AI tech.
What Drives the Next Move
Economists polled by Dow Jones expect the January report to show a 0.3% monthly bump in headline inflation. Goldman Sachs is betting on a softer 2.4% headline number, which could ease some of the market’s nerves.
Ross Mayfield from Baird suggests this CPI print matters a bit less after the recent solid jobs report. The Fed now has more wiggle room to hit the pause button on major decisions for a few months.
Investors were spotted taking cover in defensive sectors like consumer staples during yesterday's turbulence. Coca-Cola and Walmart shares managed to climb while the tech sector was getting hammered.
Impact on US Markets
The correction in Apple and Cisco feels a lot like the tech portfolio rebalancing we saw back in early 2022. However, the calm in futures markets this morning suggests traders are waiting for hard data rather than panic selling.
Positive vibes also came from earnings reports that crushed expectations despite the macro gloom. Rivian shares jumped 14% after the market gave a thumbs up to their operational performance.
The 10-year Treasury yield dipped below 4.11%, signaling some cautious optimism about the inflation outlook. Lower yields often support higher market valuations, provided earnings trends can back them up.
CME Group's FedWatch tool shows the odds of the Fed holding rates steady have jumped to nearly 40%. Still, the market is pricing in a chance that the central bank will cut rates at least once this year.
The market is now in a "wait and see" mode, looking for confirmation on inflation trends before making big moves. Volatility might finally cool off if the CPI data plays nice with the Fed’s monetary policy.
That’s the market update worth watching today. Follow Gotrade News for timely coverage on US stocks, ETFs, and macro moves that shape market direction. For a structured starter guide, visit the Gotrade Blog to learn the basics and build your plan.
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Reference:
Watcher Guru, Dow Jones Stock Markets Futures Jump as CPI Test Nears. Accessed on February 13, 2026
CV Observer, Dow Jones Stock Markets Futures Edge Higher Ahead of Key CPI Report. Accessed on February 13, 2026
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