Weekly Market Commentary 2-17-2026

“Bubble Fears to Disruption: A New AI Market Narrative"
See what we have to say about the following:

 

 

 

• From Bubble Fears to Disruption: A New AI Market Narrative
  Investor sentiment has shifted from AI bubble concerns to fears of widespread disruption, driving sharp software selloffs despite continued revenue growth, strong margins, and entrenched enterprise adoption.

 

• Nasdaq Momentum Mirrors Its Pre‑DeepSeek Pattern & Oversold Conditions
  Technical indicators show software stocks at historically oversold levels similar to the pre‑DeepSeek episode, suggesting potential for a bounce but requiring further confirmation for a sustained recovery.

 

• Valuation Support and Broader Market Implications
  A sharp valuation reset has made software stocks more attractive even as sector weakness has weighed on the S&P 500’s ability to reach new highs, making stabilization in tech critical for broader market strength.

 

• STAAC Asset Allocation Insights
  STAAC remains neutral on equities, expects ongoing volatility, and is inclined to add equity exposure on weakness while favoring healthcare, industrials, and technology and maintaining a neutral stance in core fixed income.