Portfolio 1 - Growth | Weekly Update
Week Ending February 13, 2026
Market Context - Week of Feb 10-14
AI anxiety dominated this week, triggering the second consecutive weekly decline for major indexes. The S&P 500 fell 1.2% to close around 6,850, while the tech-heavy Nasdaq dropped 2%, marking its fifth straight weekly loss. The Dow declined 1.1% to finish near 49,500. Thursday saw the sharpest selloff, with fears of AI-related industry disruption hammering tech, financials, and communication services sectors.
Friday’s softer-than-expected January CPI report (2.4% year-over-year vs. forecasts) provided modest relief. Inflation coming in below expectations lowered bond yields and sparked hopes for potential Fed rate cuts later in the year. Small-caps (Russell 2000) outperformed on Friday as markets rotated away from tech megacaps toward more defensive and cyclical sectors.
Volatility spiked mid-week (VIX jumped notably) as AI disruption concerns overshadowed fundamentals. While inflation data calmed nerves into the close, the week highlighted a clear shift in sentiment—tech concentration risk is back on traders’ minds, and the “AI trade” is no longer a one-way bet.
Portfolio Snapshot:
