Why Investors Are Stepping Back From AI  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

February 09, 2026   |   Read Online Not a fan of Fred? Unsubscribe here.   AI Stock Rally Faces First Real Test Why Investors Are Stepping Back From AI February 09, 2026 MorningBullets is the fastest way to catch up on the market and political news that matter most to your money. Quick takes, sharp insight, and curated opportunities—served fresh every weekday morning. Sponsored Content 2026 Market Shift: 3 Small-Caps Showing Early Signals Changes in small-cap activity often begin quietly. Rather than a loud announcement, they appear as gradual shifts in volume and participation. As the year gets underway, our team has identified three lesser-followed companies displaying these exact early behaviors. They aren't widely covered yet, but the data suggests renewed interest is forming. View the Free Research Update » By clicking the link you will automatically be subscribed to the Stock News Trends Newsletter Privacy Policy Investors study falling charts as technology stocks come under pressure. Good Morning, Markets are hovering near record levels, but the tone under the surface is starting to change. A pullback in software shares is raising fresh questions about how much optimism is already priced into AI-driven stocks, even as investors await key economic data. We break down what triggered the move, why it matters for growth-heavy portfolios, and where pressure could build next if rates stay firm. Taiwan rebuffs U.S. chip relocation efforts, Lyft targets Gen Alpha with teen rides in 200+ markets, and white-collar job seekers turn to reverse recruiting as AI-driven layoffs squeeze hiring. Don't forget to voice your opinion in my polls below. Here are your Morning Bullets. – Truly yours, Fred Frost 📈 Yesterday's Market Recap Yesterday, global markets rode a wave of optimism, led by Japan's Nikkei 225 surging 3.9% to close at 56,363.94 after PM Takaichi's election win. U.S. futures ticked up as the Dow held above 50,000, though tech stocks wavered amid valuation concerns. Here's what moved the needle. Nikkei 225 Record Rally: Japan's benchmark soared to a record intraday high of 57,337.07, fueled by political stability with the LDP securing a supermajority. → ABC News Tech Sector Selloff Eases: A minor bounce in U.S. tech stocks on Friday couldn't erase weekly losses, as investors question AI infrastructure spending. → MarketWatch Gold Continues Climb: Gold futures rose 1.4% to $5,048.90 per ounce, reflecting safe-haven demand amid mixed market signals. → Money 📉 Daily Performance Snapshot Index/Asset Closing Value Change S&P 500 6,932.30 +133.90 (+1.97%) Nasdaq 23,031.21 +490.63 (+2.18%) Dow Jones 50,115.67 +1,206.95 (+2.47%) Gold $5,037.10 +$57.30 (+1.15%) Crude Oil $63.62 +$0.07 (+0.11%) Bitcoin $69,105.00 -$2,167.00 (-3.04%) 10-yr Treasury Yield 4.206% -0.004 (-0.10%) 🔭 What to Watch Today Today's calendar has a few key events that could ripple through markets. From geopolitical developments to corporate moves, here's what to keep an eye on as you position for the week ahead. Netherlands vs. Namibia T20 World Cup Match (11 AM IST): A Group A clash in New Delhi could draw global attention, with potential boosts for sports-related stocks and crypto fan tokens. → Business Standard Meta Child Safety Trial Update: New Mexico's landmark case against Meta continues in Santa Fe, with implications for tech regulation and platform liability. → AP News Post-Super Bowl Market Reactions: Keep tabs on stocks like Nike and TG Therapeutics after their high-profile Super Bowl ads, as retail sentiment could shift. → Stocktwits 💡 Opportunity Watch Amid the noise of political wins and tech turbulence, a few opportunities stand out for the sharp-eyed investor. Here are three themes worth watching for potential upside in the near term. RTX Corporation (RTX): With a $268B order backlog and defense spending tailwinds, RTX looks poised for sustained growth in aerospace and defense. → MoneyWeek Crypto Surge with 2026 World Cup: Fan tokens like Chiliz ($CHZ) could see volatility and gains as hype builds for the North American-hosted event. → Finance Monthly MSCI Index Dominance: Trading at a discount to historical multiples, MSCI offers exposure to $18.3T in benchmarked assets with high margins. → MoneyWeek Sponsored Content Free Book: Your Crypto Blueprint for Right Now Crypto is beaten down—and that's often when opportunity forms. While fear is high, major institutions keep building. Get the free book that lays out a beginner-friendly blueprint for buying crypto intelligently and positioning for the next rally. How to start with as little as $50 Coins "smart money" is watching now A simple formula for buying at low prices Steps to help make your crypto more secure Claim Your Free Book By clicking the link above you agree to receive periodic updates from our sponsor. 🔥 The Big Bullet Software stocks slid as investors questioned the AI-led rally What happened: U.S. markets showed fresh nerves after software stocks tumbled and raised doubts about the "AI trade". Some investors moved away from fast-rising tech names and into safer areas, which pulled down parts of the growth-heavy market. The shift came as traders tried to figure out whether recent price jumps were too far, too fast. At the same time, the week started with attention on key economic data that can move rates and stock prices. Market positioning also looked cautious because many traders have been buying dips quickly, and that pattern can break when worry rises. Adding to the tension, U.S. stock futures rose ahead of key jobs and inflation reports, suggesting the next headlines could steer the day. In short, investors are still watching AI, but they are also watching the economy's "speed limit." Why it matters: When software and other high-growth stocks drop, it can signal that investors are less willing to pay up for future profits. This matters because many big market gains lately have come from a small group of "growth" leaders, including AI-linked names. If that group weakens, broad indexes can struggle even if the economy looks okay. Rates and bonds also play a big role here, and bond-market shifts tied to the "Sell America" trade can change how attractive stocks look. Higher or jumpier yields can make long-term tech profits seem less valuable today, which can pressure valuations. Investor mood is another driver, and Goldman's Panic Index moving toward "max fear" hints that confidence may be fragile even during a rally. For retail investors, this is a reminder that fast themes like AI can move sharply when expectations change. It also shows why diversification matters when one corner of the market gets crowded. What's next: Markets will likely react to how new economic updates change the outlook for interest rates and growth. Traders will also watch whether today's tech weakness spreads to other sectors or stays contained. Global headlines can matter too, including currency moves and foreign demand for U.S. assets, which can affect yields and stocks. A daily roundup like China's stance on U.S. Treasuries and the dollar can become a fast-moving market catalyst. Investors will also keep an eye on company-specific AI spending plans, because that is where the "AI winners" case is tested. For example, new signals around Alphabet and Meta's AI spending and Broadcom's story highlight how quickly expectations can shift. If more firms raise or cut AI budgets, it could change which stocks lead and which lag. Finally, watch volatility: bigger intraday swings can force funds to rebalance and can amplify moves. How markets have bounced back recently even as tech and software stocks remain under pressure. – WSJ How How huge AI investments by major tech firms are causing concern instead of confidence. – The Australian How the software selloff affects private markets, not just public stocks. It shows that venture funds are hesitant to invest new capital when values keep falling. – WSJ Reader Feedback Last time, I asked you: Which of the following do you think is the bigger risk for tech stocks right now? The majority of you at 57% said "AI won't pay off anytime soon." Trevor from Wyoming: "I think the bigger risk is that AI takes longer to make money than people expect." Here's what I'm asking you today: Which best explains why software and AI stocks are falling now? AI hype ran ahead of real profits Higher interest rates are hurting tech stocks Investors are taking profits after big gains Not sure / no strong opinion Other As always if your opinion is not here, or you want to throw your two cents at me, reply to the E-mail, and let me know your exact thoughts. 🧭 Policy & Market Ripples Taiwan Rejects U.S. Chip Shift: Taiwan pushes back on moving 40% of semiconductor capacity to the U.S., citing ecosystem challenges—supply chain risks linger. → Benzinga Lyft Teen Launch: Lyft's new teen ride feature targets Gen Alpha isolation, rolling out in 200+ markets with safety protocols—watch for user growth. → Fortune White-Collar Job Market Strain: Reverse recruiting rises as job searches stretch to six months, with AI driving layoffs—labor dynamics could pressure consumer spending. → Benzinga 📜 This Day in History – February 9 February 9 is a study in calibration — of engines, of institutions, of imagination. It's a day where technology edges forward, governance tightens its grip, and culture expands its commercial bandwidth. 1969 – The Boeing 747 made its first flight, inaugurating the economics of mass air travel and turning "long distance" into a middle-class commodity. 1891 – The U.S. Court of Appeals system was established, adding a crucial "middle layer" that streamlined federal caseloads and standardized judicial interpretation nationwide. 1882 – Lewis Carroll's *Alice* stories began their march into theatrical adaptations, proving that surrealism can be monetized across formats long before "transmedia" was a buzzword. 1870 – The U.S. Weather Bureau was founded, beginning the long institutional project of turning atmospheric chaos into usable, forecastable data for commerce and safety. Today's Trivia What is one common reason people create a monthly budget? A) To plan spending and avoid overspending B) To increase their credit score automatically C) To eliminate all taxes owed D) To guarantee investment returns 88% of you chose the right answer to our previous trivia question: What is a major benefit of having a good credit history? Money is good for nothing unless you know the value of it by experience. – PT Barnum Thanks for Reading. Stay Sharp. Stay Focused. Fredrick Frost Editor, MorningBullets   Update your email preferences or unsubscribe here © 2026 Morning Bullets 20 North Orange Ave. Floor 11 Orlando, Florida 32801, United States Terms of Service