The market soared last Friday, driving the Dow Jones Industrial Average up and over 50000, a milestone achievement for Wall Street. Driven by a growing robust economy, sometimes not appreciated, investors and traders latched on, as buying was heavy as shown by the explosive Dow Jones Industrial Average, up 1206 points, or 2.5% for the day. Just 8 years ago, in 2018, the Dow Jones stood at 25000. As the economy marched ahead ‘hitting on all cylinders’ over the next 8 years, the Dow Jones climbed steadily, reaching a Dow Jones milestone of 50000. In recent years huge gains in technology, artificial intelligence, software and many related sectors have contributed to the dynamic growth.
Continuing ‘rotation’ out of the high tech sector, including the Mag-7 favorites into favored ‘blue-chip’ valued stocks has become the go-to direction. “We don’t think the U.S. opportunity is over by any stretch of the imagination,” said Chris Hyzy, chief investment officer at Bank of America. “Are [investors] going to run and hide, or view that as a buying opportunity?” The University of Michigan Consumer Sentiment Survey for February ”ticked-up’ indicating that ”Americans’ economic mood is improving.” The survey gauge edged up to 57.3 in February from 56.4 in January. “Analysts polled by The Wall Street Journal were expecting a gloomy reading of 55 this month.” Janet Hsu, director of the survey said, “Concerns about the erosion of personal finances from high prices and elevated risk of job loss continue to be widespread.”
The stock market “rebound” spilled over to Monday, as tech stock demand strengthened. Both AI and Software stocks saw major buying, recovering from the sell-off last week. The strong buying lifted the Dow Jones to new heights, now standing at 50136.87. “You almost have a schizophrenic personality on AI right now, we’re not sure what the negative ultimate consequences could be in terms of AI disruption,” said Stephan Kalano, chief investment officer at Integrated Partners. Treasuries drew added attention as many investors are looking for stability and safe havens. The 10 year Treasury note is sitting at 4.99%. Bitcoin recovered slightly, rising to 70,754. (Thursday’s price, $65,843, 2/12/26)
Tuesday’s market was again influenced by the artificial intelligence sector’s woes, pressuring the financial services, and wealth management sectors as they were down 3% to 8% across the board. Both the S&P 500 and Nasdaq Composite backed off slightly, off 0.3% and 0.6%, while the broad-based Dow Jones finished just above flatline, up for the third straight day, closing at 50188. December retail sales were flat, however many analysts noted the 2 previous months were up as indications February and March look potentially positive. Wednesday’s market turned negative as investors fretted over the many artificial intelligence concerns, and the continuing sell-off of software issues. All indexes floundered, finishing below flatline, with the Dow Jones off 0.1%, and the S&P 500 and Nasdaq off 0.1% and 0.2% respectively. “You’re seeing a market that is feeling a little fatigued,” said Chris Kampitsis, managing partner, Barnum Financial Group. The U.S. dollar, weakened by massive institution of tariffs in April 2025, the softening of the techs and uncertainty of the future of artificial intelligence, have all contributed to uncertainty for the U.S. investor as many are and have looked globally for new fertile investment ground. Lower pricing, with strong growth potential is luring the U.S. investor, and his funds. According to Morningstar Direct data, $51.6 billion flowed into international exchange-traded funds in January ’26 alone. The trend is picking up steam. Indexes suffered again Thursday as investors worried about possible severe effects of AI on techs. The Dow Jones lost 670 points, off 1.3%, while the S&P 500 and Nasdaq were down 1.6% and 2% respectively.
RUMBLINGS ON THE STREET
David Kelly, chief global strategist at JPMorgan Chase, WSJ – The economic data are pretty soggy, we’ve got a very sort of C–minus economy supporting a A–plus stock market, and I think that is part of the problem too.”
Clark Bellin, chief investment officer at Nebraska based Bellwether Wealth, WSJ – “It makes you worry about what other pockets have been driven up by almost pure speculation. I don’t want to paint this as a doomsday, but I think volatility is going to be [here] for a while.”
Seema Shah, chief global strategist at Principal Asset Management, WSJ – “Technological disruption rarely eliminates all incumbents, but it does reshuffle the hierarchy.”
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