Weekly Roundup Feb. 2-6
BITCOIN FALLS | MARKET VOLATILTY | LABOR REPORT
By: Lorenzo Alfonso and Hollis Costa
Feb. 9, 2026
Market Snapshot
S&P500: 0.78% | Russel 2000: 1.24% | Dow Jones: 0.68% | Oil (WTI): 14.44% | Gold (GLD): 0.34% | VIX: -5.59% | 10 yr Treasury Yield: 4.224%
The Economy at a Glance
Last week was a very volatile week, which Hollis touches on later in the article. Major U.S. large-cap indexes suffered their worst week since November. Worries about AI and potential overinvestment in the tech and AI sector weighed on markets throughout the week.
Private payroll processing firm ADP reported that private-sector employment increased by 22,000 jobs in January, short of forecasts for around 45,000 and down from 37,000 in December. With ADP’s full-year totals, job creation for 2025 came in at 398,000, a notable decline from 771,000 in 2024.
The U.S. Labor Department’s Job Openings and Labor Turnover Summary revealed that U.S. job openings declined to roughly 6.542 million in December. This is the lowest level since September 2020. Initial U.S. jobless claims came in at 231,000, higher than estimates of 209,000.
European Inflation Report
Overseas, the European Central Bank kept its policy rates unchanged. Their inflation reading came in at 1.7%, just shy of a target of 2%. Policymakers said in a statement that the economy “remains resilient in a challenging global environment” and that inflation “should stabilize” at its 2% target in the medium term.
Bitcoin Falls
In other news, Bitcoin continued to decline last week. The price of the cryptocurrency fell to around $61,000. This level is less than half of the record it hit about four months earlier near $126,000. With an imbalance of selling and reduced demand, as investors look for safer assets rather than alternatives, Bitcoin has continued to fall. We will keep an eye on whether a rebound occurs this week, especially if the stock market stabilizes and investor sentiment improves.
AI Volatility
Software stocks across the market lost roughly $1 trillion in market value over the past week. The scare began when Anthropic, an AI company best known for its model Claude, released new tools capable of automating common professional tasks such as legal work, data analysis, and code writing. This sparked concern about how AI could affect software industry valuations going forward.
Investors sold shares in companies like Thomson Reuters (TRI), which fell 17%, Intuit (INTU), which dropped 9%, and FactSet (FDS), which declined 9%, among others. The pressure across software names contributed to broader index declines, with the Nasdaq falling around 4–5% and the S&P 500 also dropping in that range during the week.
Confidence improved toward the end of the week as dip buyers stepped in on Friday. Reassurance from some of AI’s biggest industry leaders, including Nvidia CEO Jensen Huang and Arm CEO Rene Haas, helped restore investor confidence and pushed back on concerns that AI would rapidly replace large portions of the workforce.
Investors began buying what appeared to be discounted software stocks, helping markets recover part of the week’s losses. By the close of the week, the Dow finished up 2.5%, the S&P 500 was down 0.1%, and the Nasdaq was down 1.8%.
Overall, it was a turbulent week that shook investor confidence and forced many to reconsider the pace and impact of AI on the future of major companies. The Friday rebound suggested that investors are not yet ready to abandon the software sector.
Looking Ahead
This week we will be watching the monthly jobs report from January, scheduled for release Wednesday. Due to the brief government shutdown, several statistics have been delayed and are now expected Wednesday, February 11.
In addition, the CPI report has been pushed back until Friday the 13th. Retail sales and business inventories are also scheduled to be released this week.
Glossary
ADP Payroll Report
This is basically a preview of the labor market. ADP tracks payroll data from private companies, so investors use it as an early signal for what the official jobs report might look like.
Job Openings (JOLTS)
This measures how many positions companies are trying to fill. If job openings are falling, it can mean businesses are slowing hiring or becoming more cautious.
Policy Rates
These are the interest rates set by central banks. They influence everything from mortgage rates to business loans to credit cards.
Inflation Target
Most central banks aim for about 2% inflation. That level is considered healthy—high enough to support growth but low enough to keep prices stable.
Dip Buyers
These are investors who step in and buy stocks after markets fall, believing prices have become attractive.
Market Valuation
This is what investors collectively believe a company or sector is worth. When sentiment changes quickly, valuations can drop fast even if the companies themselves haven’t changed overnight.
Alternative Assets
Investments outside of traditional stocks and bonds. Crypto is often considered one, though it behaves very differently from traditional safe-haven assets.
