Next Day Prep: TechBlood & FastBucks Prep 4 CPI Storm
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Market Briefing – February 12, 2026
Intro & Market Mood:
Today’s market witnessed a major sell-off ahead of the January CPI report, reflecting a “risk-off” sentiment among traders. The indices showed significant declines, with S&P 500 (-1.6%), Nasdaq (-2.0%), and Russell 2000 (-2.0%) all in the red.
Overnight Headlines:
- AI Disruption Fear: Traders grapple with the impact of AI disruption not only boosting tech but also harming other sectors like logistics (C.H. Robinson, Expeditors).
- Tech Weakness: Software sector took a hit with AppLovin down 20%, while Cisco faced a 12% drop on margin warning.
- Defensive Rotation: Money flowed into defensive sectors such as Utilities (e.g., Exelon) and Staples (e.g., Walmart).
Economic Announcements:
Watch out for the CPI report scheduled for tomorrow with an expected 0.3% rise. Market also saw oil prices down 2.7% due to Trump/Iran talks while bond yields dipped.
Earnings Highlights:
- Fastly (FSLY): Notable winner of the day, surging 72% on earnings and AI tailwind.
- AppLovin (APP): Despite beating earnings, faced a sharp 20% decline, showcasing trader sentiment.
Top Movers:
Utilities and Staples outperformed in a risk-off environment while tech and logistics sectors experienced significant losses.
Quick Trade Ideas:
- Keep an eye on SPY support at 680 and resistance at 685. QQQ support at 600 with potential downside risk to 595 and resistance at 605.
- Observe defensive sector performance alongside tech movements for indication of market direction. React to CPI data release with caution.
Key Takeaway:
As traders navigate through AI disruptions, defensive rotations, and tech vulnerabilities, staying vigilant with technical levels and sector dynamics is crucial amidst market volatility.