US Stock Market Weekly commentary / stock picks- Week ending Feb 6, 2026

Market Rotation Signals Resilience Amid Sector Shifts

The recent market environment reflects rotation rather than systemic weakness. While Technology and Software — key drivers of the Nasdaq and S&P 500 — experienced notable pressure due to slowing mega-cap growth and heavy AI-related capital spending, capital flowed into Industrials, Transportation, Energy, Financials, and other value-oriented sectors. This rotation supported new highs in the Dow and a breakout in small-cap stocks, while improving overall market breadth. Significant declines in select software names and cryptocurrencies highlighted risk in aggressive growth areas, yet historical patterns suggest such drawdowns are not unprecedented. Ultimately, the market remains resilient, characterized by strong dip-buying and expanding leadership. The critical question ahead is whether semiconductors can sustain the Technology sector or if further weakness in growth stocks will re-emerge.