Weekly Market Insights
February 6, 2026 Volume 13 Issue 5
Markets closed on a cautious note. Investors favored dividends, value stocks, and small caps, while growth and high-beta stocks underperformed. Leading sectors included staples, energy, and industrials. Technology and consumer discretionary sectors lagged, as weaknesses in software impacted the benchmarks. Outside the U.S., performance was mixed, with developed markets more stable than emerging markets. Core bonds gained slightly, and credit remained steady. Commodities stayed volatile, with notable swings in precious metals and energy; finally, Bitcoin and listed private equity strategies underperformed.
Monetary policy stays firmly on hold. A partial federal shutdown has increased uncertainty about fiscal policy and delayed key data releases, reinforcing investor sensitivity to policy credibility and institutional stability. Despite this, underlying employment conditions seem stable, even as announced layoffs remain high in technology-related industries that expanded aggressively earlier in the cycle. Housing data shows improving affordability at the margin, with slower price growth and increased inventory helping buyers gain negotiating power, even as the mortgage rate lock-in effect continues to limit supply. Abroad, focus remains on Japan as currency fluctuations and policy normalization meet with global bond dynamics.
Corporate commentary indicates that earnings durability is increasingly reliant on pricing power and cost control rather than top-line growth. Additionally, earnings reports in software have renewed concerns about the sustainability of business models in an increasingly automated environment, pressuring growth sectors and accelerating a current rotation instead of changing the overall cycle. With limited data, markets continue to shift cautiously rather than moving decisively into risk-off.
Have a great weekend!
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*All economic release data referenced from public sources believed to be accurate. *The source of data for all charts/graphs included in this presentation is Bloomberg LP. *Figures quoted represent monthly changes (m/m) and are seasonally adjusted.