Market showing signs of recovery after recent sell-off

When everyone is selling, it can be a chance to buy cheaper. After Presidents' Day, the S&P 500 opened with a gap down, and the Magnificent Seven stocks fell to their weakest levels since September. Yet upbeat news from NVIDIA about expanded chip shipments to Meta helped the group finish the day in the green.

February's pullback in the S&P has been about rotation rather than a weak economy or a wave of weak earnings reports. Investors are trimming yesterday's winners amid worries over AI's impact and US political uncertainty. The ratio of the Magnificent Seven versus the rest of the S&P — and the S&P versus global equities — has declined, as capital flows increasingly into Europe and Asia. Follow the link for more details.

US dollar inches higher, nearing 97.30

The US dollar is modestly firmer. The US dollar index is trying to break above 97.30 to reclaim yesterday's and the six-day high around 97.50. After a roughly 9.5% drop in 2025, the index has been consolidating near the key support level of 96.90. Near-term direction is being driven by expectations of Federal Reserve rate cuts and technical levels, with the market awaiting macro releases and the January FOMC minutes.

The inflation picture remains central. Headline CPI eased to 2.4% y/y (consensus 2.5%, prior 2.7%), with a monthly print of +0.2% (consensus +0.3%). Core CPI printed 2.5% y/y and +0.3% m/m. The cooling in inflation supports hopes for interest rate reductions, but the dollar needs more positive catalysts to sustain a stronger bullish run. Follow the link for more details.

AI, Apple, and shake-up in chip supply chain

AI remains front and center for markets and regulators. Debate within the Fed is heating up. Michael Barr is skeptical that AI alone will solve rate questions, Mary Daly urges careful study of the consequences, while Kevin Warsh cites tech as a potential argument for policy easing. Investors are losing patience with rosy AI narratives and demanding real monetization — clear numbers, not promises.

Technology news is reshaping industry alliances. Apple has scheduled a March 4 presentation and plans Mac and iPad updates in H1 2026, with mass iPhone 17 production and a potential iPhone 18 in Europe without a physical SIM. Meanwhile, the hardware market is being rattled by shifting supplier ties. OpenAI reportedly plans to buy chips from Cerebras, prompting Nvidia to cancel a pledged $100bn investment. That recalibrates demand for specialized processors and underscores fast-moving competition and rapid repricing across supply chains. Follow the link for more details.