Key Takeaways
- Major US indices finished Friday mixed; the Dow and S&P 500 posted marginal gains of 0.05% while the Nasdaq fell 0.28% as AI-related tech selling persisted.
- US Secretary of State Marco Rubio is scheduled to meet Ukrainian President Volodymyr Zelenskyy in Munich on Saturday to discuss the ongoing conflict and transatlantic security strategy.
- Canada is launching a major trade mission to Mexico on February 15, led by Minister Dominic LeBlanc, ahead of the high-stakes 2026 USMCA review process.
- Applied Materials (AMAT) shares surged over 11% following impressive quarterly results, providing a rare bright spot in a volatile semiconductor sector.
- January CPI data showed inflation cooling to 2.4%, slightly lower than market estimates, but failed to ignite a broad rally as investors rotated out of megacap tech names.
Wall Street closed a turbulent week on a mixed note as investors weighed cooling inflation data against persistent concerns over the valuation of artificial intelligence leaders. The S&P 500 unofficially gained 3.32 points, or 0.05%, to finish at 6,836.08, while the Dow Jones Industrial Average edged up 25.11 points to 49,477.09. In contrast, the tech-heavy Nasdaq Composite declined 62.11 points, or 0.28%, to end at 22,535.04, marking its third consecutive week of losses.
The divergence in performance was driven by a sharp rotation out of "Magnificent Seven" names like Nvidia (NVDA), Alphabet (GOOGL), and Amazon (AMZN), which all finished lower on Friday. Market sentiment remains fragile as traders question the immediate profitability of massive AI infrastructure spending. However, software service providers like Salesforce (CRM), ServiceNow (NOW), and Oracle (ORCL) found some respite, gaining between 3% and 4% during the session.
In the geopolitical arena, US Secretary of State Marco Rubio arrived at the Munich Security Conference on Friday, where he is leading a large American delegation. Rubio is expected to meet with Ukrainian President Volodymyr Zelenskyy on Saturday to address the "terrible" human cost of the war and push for a diplomatic resolution. The Secretary's visit is being closely watched by European allies as he signals a "new era in geopolitics" that emphasizes increased burden-sharing for continental defense.
Trade tensions are also moving to the forefront as Canada prepares to lead its largest-ever trade mission to Mexico from February 15 to 20. Led by Minister Dominic LeBlanc, the mission aims to solidify North American supply chains before the formal USMCA review begins in July 2026. This review is expected to be a high-stakes negotiation, with the US administration likely seeking concessions on labor, energy, and digital trade rules.
Despite the broader tech sell-off, Applied Materials (AMAT) emerged as a top performer, jumping more than 11% after reporting quarterly earnings that beat analyst expectations. Other chip-related gainers included Arista Networks (ANET), which rose 6%. Analysts suggest that while megacap hardware providers are facing a pullback, specific semiconductor equipment manufacturers continue to benefit from robust demand for advanced manufacturing capabilities.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.