2026-02-13 17:44:00
US stocks have turned around nicely today led by the Russell 2000, which is up 1.8%. The S&P 500 and Nasdaq are both up 0.6% and eyes are on software stocks. The IGV software ETF is up 2.3% after an utterly bruising performance so far this year.
IGV ETF daily
I’m careful not to lean too hard on this index because 20% of it is Microsoft and I see it as more of a disrupter than a disruptee. That said, it’s been beaten up as well.
If you look at the chart, it’s found some support at last week’s lows and if that continues to hold, the bulls could pile back in.
Here are some beaten up software names that are doing well today:
- Salesforce +3.4%
- WDAY +1.8%
- NOW +4%
- Moody’s +3.4%
- SPGI +2.7%
In the bigger picture, it’s still the old economy and mining stocks that are leading the way today.
- NEM +6.9%
- Ingersoll Rand +6.5%
- Vistra +4.5%
Freight companies are also bouncing back from yesterday’s AI disruption puke.
Looking at the chart, there is a range from roughly 6800-7000 and that’s the space to watch.
SPX daily chart
I tend to think the downside is more vulnerable because the AI trade isn’t going away but it’s the kind of chart where you wait for a break rather than picking sides.
Next week’s calendar is far lighter on both economic data and earnings. That could help to cool volatility but I should note that the Supreme Court is back in session so the tariff decision could come.
This earnings season was something of a disaster as even companies that reported beats often saw their stocks beaten up. I worry that MSFT’s 12% drop on earnings was a powerful signal that nothing is safe.
