Notable market news this past week (15-Feb-26)
Here is the Skeptivest roundup of the latest market headlines for the week
🌍 Anthropic AI tool continues to spark sell-off in global software and tech stocks
Anthropic AI trigger and a sharp tech sector sell-off: The recent market turmoil which wiped out nearly US$1 trillion from software and services stocks, was sparked by developments from US-based AI firm Anthropic, whose launch of advanced plug-ins for its Claude AI platform triggered fresh disruption fears among investors, especially in enterprise software and professional services sectors. These new tools – capable of automating high-value tasks like legal work, data analysis, and corporate workflows – have heightened concerns that autonomous AI could erode traditional software revenue models much faster than previously anticipated, leading to sharp losses in legal-tech and data provider stocks, triggering a broad reassessment of AI’s near-term impact.
Market impact and broader risk repricing: That initial shock snowballed into a wider sell-off across global equity markets, with major tech and software indexes plunging as investors repriced risk amid fears that rapid AI adoption may undercut existing business models and growth forecasts. The “AI scare trade” expanded beyond tech, hitting sectors like logistics, financials, and real estate, as fears that automation could displace established services led to broad risk-off positioning among investors. The extreme market sentiment tugged down major benchmarks, with Nasdaq Composite falling about 2% in a single session, as investors rotated capital away from high-valuation tech stocks toward more defensive and less-AI exposed names.
☕️ Quick fire happenings to note
🌏 Global macro
- US inflation cools, kindling hopes of Fed rate cuts: US inflation came in cooler than expected at 2.4% y/y in January vs 2.7% y/y in December, as housing costs and gas prices ease, offering some relief to consumers. Core inflation (which excludes volatile food and energy prices) eased to 2.5% y/y, down from 2.6% y/y in December, marking the lowest annual core inflation rate since March 2021. Markets reacted with modest moves – treasury yields slipped, with 2-year declining 6bps to 3.41% and 10-year sliding 5bps to 4.05%, as expectations that Fed may cut interest rates later this year were boosted.
- Japan Prime Minister Takaichi’s ruling Liberal Democratic Party won a historic landslide victory: The party secured a two-thirds supermajority in the Lower House – the largest showing by a single party in post-war history. The decisive win gives Takaichi a strong mandate to pursue an ambitious policy agenda, including expansionary fiscal measures, potential tax relief, and structural reforms, which has bolstered market sentiment and driven a rally in Japanese equities. Following the election outcome, the JPY initially weakened and JGB yields rose, as investors anticipated higher government spending and ongoing economic stimulus. However, verbal intervention by the central bank on Monday had helped the JPY regain strength.
- China’s new home prices extended declines in January: China’s property market remains under significant strain in early 2026, with new home prices down 0.4% m/m, 3.1% y/y on an annual basis, quickening from a 2.7% y/y fall in the previous month for the steepest decline in seven months. The prolonged downturn in the property sector which has eroded household wealth as home prices decline and dampen overall consumer spending, reflects a weak demand and high inventory pressures that have persisted since 2021. Authorities have introduced a range of supportive measures – easing purchase restrictions, lowering taxes on property sales, and encouraging state-linked firms to buy foreclosed projects – to stabilize the sector and absorb excess sector, but fundamental challenges such as oversupply, tight financing for developers, and fragile buyer confidence still persist.
🏦 Individual stocks/companies
- Amazon Inc (-4.71% past 5D) shares continue to fall after reporting Q4 results that were mixed: Revenue slightly beat expectations but a larger planned increase in capex for 2026, with heavy AI, robotics, chips, and satellite investment, weighed on the stock, dragging shares lower on profitability concerns. The e-commerce company unveiled a massive US$200 billion capital spending plan for AI, cloud, chips, and robotics – far exceeding expectations. Shares continued to decline last week as markets reacted not just to the profit outlook but also to its workforce restructuring strategy, including approximately 16,000 layoffs announced in late January, which added to the growing investor unease over near-term margins.
- Applied Materials Inc (+11.58% past 5D) shares surged on a strong fiscal Q1 2026 report that significantly outperformed expectations: The company reported revenue of about US$7.01 billion and adjusted EPS of US$2.38, both ahead of estimates, with management forecasting strong double-digit growth in its semi-conductor business for the year. This upbeat outlook on AI investment and chipmaking demand ignited investor enthusiasm, sending the stock sharply higher – with shares surging around 14% in a single session. Analysts also raised price targets on the stock amidst the strong guidance, underscoring confidence that the company, as a key supplier of wafer fabrication tools, stands to benefit from continued AI infrastructure build-outs.
- Spotify Technology SA (+6.10% past 5D) shares surged after reporting strong Q4 earnings that beat estimates, thanks to record user growth and improved profitability. The audio streaming company added 38 million monthly active users, bringing its total to 751 million, with 290 million premium subscribers, up 10% y/y – both above forecasts. Revenue of about €4.5 billion, was up 13% y/y, and EPS far exceeded estimates, underpinned by pricing power and margin expansion. Management also highlighted strategic priorities such as AI-driven features, pricing initiatives, and a transition in leadership as founder Daniel Ek moved to executive chairman.
🇸🇬 Singapore related
- Prime Minister and Finance Minister Lawrence Wong delivered Singapore’s Budget 2026 in Parliament, outlining the government’s fiscal and policy priorities for the year ahead. The Budget projects a fiscal surplus of about S$8.5billion for FY2026, following a much larger S$15.1billion surplus in FY2025 – more than double earlier estimate of S$6.8billion, due to stronger corporate tax collections, COE premiums, and other revenues. A major theme was positioning Singapore for future economic resilience, with significant investments in artificial intelligence (AI), including a National AI Council chaired by PM Wong, and incentives for AI adoption across sectors, such as support for AI courses, and expanded tax incentives for businesses. The Budget also included measures to support households through cost-of-living relief such as cash payouts, CDC vouchers, and utility rebates. Additional S$1.5bn top-up to the Financial Sector Development Fund, changes to foreign workforce policies, and increment in tobacco taxes were also announced.
