A $2 Trillion Software Reset Meets Steady AI Demand  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

February 10, 2026   |   Read Online Not a fan of Fred? Unsubscribe here.   Markets Digest Software Selloff Amid Ongoing AI Spending A $2 Trillion Software Reset Meets Steady AI Demand February 10, 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 This Chart Pattern Looks Just Like TIO in Early 2023 Traders who got in early on $TIO saw outsized gains once the volume picked up. We're seeing something similar again — and it's not on the radar yet. Get the name and price setup — 100% free. 👉 Reveal the Ticker + Setup Now By clicking the link above you agree to receive periodic updates from our sponsor. A divided market as investors rethink software stocks while AI spending holds firm. Good Morning, A sharp pullback in software shares erased trillions in value even as AI spending and earnings stayed surprisingly firm. We break down what drove the selloff, why investors are still backing select tech names, and what this growing split says about where risk is building. Trump's beef import surge aims to tame U.S. prices amid rancher pushback, China's property downturn worsens with a dire S&P forecast, and Stellantis absorbs a $26.5B blow as it retreats from overhyped EV targets. 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, the U.S. markets celebrated a historic moment as the Dow Jones Industrial Average closed above 50,000 for the first time at 50,115.67, up a robust 2.47%. Tech stocks, especially semiconductors like Nvidia and AMD, led the charge with gains over 7%, shrugging off mid-week jitters. Positive inflation expectations and Big Tech's AI spending fueled optimism, though not without some cracks—Amazon slipped 7% on heavy capex costs. Here's what moved the needle. Dow Hits 50,000 Milestone: The Dow surged 1,206.95 points to close at a record 50,115.67, marking a psychological win for bulls. → Fox Business Tech Rebounds with Chip Strength: Nvidia, AMD, and Broadcom each jumped over 7%, lifting Nasdaq by 2.18% to offset earlier sector weakness. → MarketWatch Amazon Drags on AI Spend: Amazon fell nearly 7% as investors balked at a 50%+ increase in capital spending for AI data centers. → CNBC Inflation Sentiment Boosts Rally: University of Michigan data showed 1-year inflation expectations at multi-year lows, easing rate hike fears. → ABC News 📉 Daily Performance Snapshot Index/Asset Closing Value Change S&P 500 693.95 +3.51 (+0.51%) Nasdaq 614.32 +4.93 (+0.81%) Dow Jones 501.22 +0.18 (+0.04%) Gold 5,049.20 -27.60 (-0.54%) Crude Oil 62.89 -0.66 (-1.04%) Bitcoin 68,443.00 -505.00 (-0.73%) 10-yr Treasury Yield 4.23% +0.02 (+0.48%) 🔭 What to Watch Today Today's calendar has a few critical events that could sway markets. From U.S. immigration policy scrutiny to key corporate moves, keep your eyes on these developments for potential ripples. House Immigration Hearing (10 AM ET): Top officials from ICE, CBP, and USCIS testify on Trump's deportation policies after recent fatal shootings, which could spark policy debates affecting border security stocks. → AP News U.S. Employment Data Preview: Investors await upcoming job market updates that could influence Federal Reserve rate decisions later this week, a key driver for market sentiment. → ABC News Wire AstraZeneca Growth Outlook: After beating Q4 revenue estimates, AstraZeneca's guidance for 2026 and progress on its weight-loss drug could lift healthcare sector confidence. → Seeking Alpha 💡 Opportunity Watch Amidst the noise of debt ceilings and political shifts, a few sectors and stocks are showing potential for savvy investors. Here are three opportunities tied to recent events worth a closer look. AstraZeneca (AZN): With elecoglipron moving to Phase III trials and Q4 revenue beating estimates, AZN could be a play in the booming weight-loss drug market. → MarketWatch Tech Sector Correction (Nasdaq-100): Kalshi bettors predict a Nasdaq-100 drop to under 19,000 by year-end, suggesting a potential short opportunity as AI hype cools. → Benzinga Gold as Inflation Hedge: With U.S. debt soaring past $38.5 trillion, allocating 5-10% to gold ETFs like GLD could shield portfolios from inflationary erosion. → Money.com Sponsored Content Tariffs, Debt & Inflation: Why Gold Is Back in Focus Gold continues to attract capital amid uncertainty. Our latest report covers: ✔ Why gold holds strong during macro volatility ✔ How to buy, store, and hedge with physical gold ✔ Risk-balanced frameworks for long-term protection 🪙 Access the Gold Investor's Guide By following the link above, you're choosing to opt in to receive updates from Investing Ideas Daily + 2 free bonus subscriptions. Privacy Policy 🔥 The Big Bullet Software stocks slid hard, but AI momentum stayed in place What happened: Big tech and software shares sold off, and one report said the drop erased about $2 trillion in value. In that $2 trillion software stock wipeout, prices fell even while many investors stayed focused on AI. At the same time, the feed notes that most S&P 500 companies have already reported fourth-quarter earnings. Those early results show profit per share is higher than a year ago, which helped keep broader market mood steady. Money is also still flowing into new AI tools, including Bretton AI's $75 million raise for compliance work. Put together, the headlines show a split market: some software names are being marked down, while AI stories keep getting funding. Investors seem to be sorting companies into "AI winners" and "everyone else" as earnings come in. That sorting can move stock prices fast, even when the overall economy data in the feed looks mostly steady. Why it matters: A big drop in one corner of the market can still matter, even if the index does not fall much. When investors pull $2 trillion out of software stocks, it often means they are less willing to pay high prices for growth. That can spill into other areas like cloud services, cybersecurity, and even some AI-related stocks. Companies are also warning that AI brings new business and legal risks, like in Alphabet's updated risk filing. If firms say AI costs are rising or rules are changing, traders may cut their forecasts for future profits. Governments are moving too, including a directive to label AI content and deepfakes, which could raise compliance costs. For investors, this mix can lead to more day-to-day swings as headlines hit. It also pushes people to pay closer attention to cash flow and balance sheets, not just big promises. What's next: The next few weeks will bring more earnings calls, and the tone of company forecasts may set the market's direction. Watch whether managers keep talking about higher AI spending, or if they start cutting budgets to protect profits. Shareholder payouts are another signal, since BP's decision to halt stock buybacks shows how quickly plans can change when profits weaken. In health care, results like CVS Health's Q4 earnings can also move sentiment because the sector is a large part of the market. Keep an eye on whether the software selloff spreads to other "growth" areas or stays limited to a few names. Also track any follow-up guidance from major tech firms about AI risks, data use, and security. On the policy side, new labeling and content rules may get clearer, and companies may update their products to comply. If these pieces line up—steady profits, controlled spending, and clearer rules—stocks may calm down; if not, volatility may stay high. How analysts at Jefferies think the recent software selloff may have gone too far, even though AI fears triggered it. – Investopedia The selloff in software and AI stocks doesn't signal broader market trouble, pointing out that technology still plays a smaller role in debt markets and the underlying economy remains supportive – Marketwatch While software stocks have struggled, companies tied to AI infrastructure (like chipmakers and data center tech) are still attracting investment – WSJ Reader Feedback Last time, I asked you: Which best explains why software and AI stocks are falling now? The majority of you at 57% said "AI hype ran ahead of real profits Natalie from Kentucky replied: "I think these stocks are falling because people got too excited about AI before it started making real money." Here's what I'm asking you today: Which best describes how you see this market move? Software stocks fell too far, too fast AI hype is hiding real problems in tech This is a healthy reset, not a crisis 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 Trump's Beef Import Order: An executive order boosts Argentine beef imports by 80,000 metric tons to combat record-high U.S. prices, though cattlemen warn of disease risks. → Fox Business China Property Slump Deepens: S&P slashes China's 2026 real estate sales forecast to a 10-14% decline, signaling a 'vicious cycle' with inventory piling up for six years. → CNBC Stellantis $26.5B EV Pivot Charge: Stellantis takes a massive $26.5 billion hit as it dials back EV ambitions, citing overoptimistic demand forecasts—shares tanked 22%. → Fox Business 📜 This Day in History – February 10 February 10 is a showcase of cultural scale, computational turning points, and institutional bets on the future. It's the type of day where creativity commercializes, machines outperform expectations, and new knowledge hubs get chartered. 1940 – Tom and Jerry made their debut in *Puss Gets the Boot*, launching an animation franchise that would become one of the longest-running examples of globally exportable IP. 1942 – Glenn Miller received the world's first official "gold record," formalizing a metric that turned music sales into measurable, marketable prestige. 1996 – IBM's Deep Blue defeated Garry Kasparov in their first game, signaling how specialized computing could outperform humans in bounded strategic domains. 1923 – Texas Tech University was established, part of a larger national shift toward regionally distributed research institutions that broadened America's innovation map. Today's Trivia Which of the following is most likely considered an asset? A) A savings account balance B) A credit card balance C) A monthly utility bill D) A personal loan 88% of you chose the right answer to our previous trivia question: What is one common reason people create a monthly budget? The goal isn't more money. The goal is living life on your terms. – Chris Brogan 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