Weekly Market Update (Feb 08, 2026)
- Market Hedwig
- Feb 7
- 2 min read
HIGHLIGHTS
Tech stocks experienced a sell-off this week, with the Nasdaq dropping by about 1.5% for 3 consecutive days.
IPO: Market expect more IPO activities to come in this year. The macro backdrop is favorable to issuance. Historically, an increase in IPO supply usually precedes lower-than-average equity returns.
Data: As there is a delay of the job report release due to a brief government shutdown, it will come alongside CPI and retail sales data in the coming week.
AI: The recent sell-off of software stock are mainly driven by the new lease of Anthropic plug-ins, including finance, sales, legal on its agentic AI platform. Markets are worried about the disruptive AI replacing non-AI software.
MARKETS
23,031.21 | -1.84% | |
S&P 500 | 6,932.30 | -0.10% |
Dow | 50,115.67 | +2.50% |
10-Year | 4.21% | -3bps |
Brent | 68.05 | -1.83% |
DXY | 97.68 | +0.55% |
*Data as of market close. 5-day change ending on Friday.
VIEW FROM THE STREET
Equity
Goldman Sachs: Markets have focused on the AI disruption risk. Software stocks dropped in the previous week. It implies the downside risk of recording high profit margins and growth. Fund managers have reduced exposures to software positions.
Morgan Stanley: Other than GenAI deployment, US consumer resilience would also be important for 2026 to be a bull market. Markets should keep an eye on the consumer tax refund proceeds and savings rates in order to gauge the strength of consumption.
Fixed Income
Morgan Stanley: US government debt that is going to mature in a year has reached $9.4 trillion, around 30% of GDP. Due to the focus on short-duration debt issuance, Fed fund rate is more important to the interest expense.
J.P. Morgan: In Japan, despite rising yields, the yen still weakened toward 160 as investors expect higher risk premium. It creates upward pressure on inflation as the cost of imported energy and food increases.
Economy
UBS: Products and services that support a longer and healthier lifestyle would benefit from the global demographic shifts. Obesity market remains in early stages of development, while nearly a billion people in the world are living with obesity. Additionally, metabolic, oncology, and cardiovascular studies are also attracting more interest from investors.
Standard Chartered: Gold pullback looks like a technical correction. We recommend using these pullbacks to add positions. It is also partly driven by the rebound in real yields after the appointment of Kevin Warsh as the new Fed Chair.
KNOWLEDGE TRANSFER
GLP-1
Here's all you need to know about the Game-Changing Obesity Drugs.
DISCLOSURE
This newsletter is meant for informational purposes only and is not investment advice. Always consult a licensed investment professional before making important investment decisions. Advertising and sponsorship do not influence editorial content or decisions. Market Hedwig is not responsible for the promises made or the quality or reliability of the products or services offered in any advertisement.
Comments