Feb. 14, 2026, 7:03 a.m. ET
- Tech industry leaders are citing higher costs for memory and storage products amid a global supply crunch, reviving concerns that AI infrastructure spending may compress profits.
- Ford Motor Co. moved higher despite missing earnings estimates as the 2026 guidance outperformed expectations.
Wall Street got the kind of macro backdrop investors typically celebrate — solid job growth and easing inflation — yet stocks struggled to gain traction as concerns over tech costs and margin pressure capped enthusiasm.
The U.S. economy added 130,000 nonfarm payroll jobs in January, well above expectations of 70,000. Private employers accounted for 172,000 of those jobs, the strongest gain since December 2024. Government payrolls dropped by 42,000, the fourth consecutive monthly decline.
The unemployment rate edged down to 4.3% from 4.4%.
The Bureau of Labor Statistics also revised down prior payroll estimates by 898,000 jobs between April 2024 and March 2025. Yet, investors largely treated that adjustment as backward-looking.
Inflation also offered reasons to cheer. Consumer prices rose 2.4% year over year in January, down from 2.7% and below forecasts of 2.5%. That marked the lowest reading in eight months.
Core inflation, which strips out food and energy, eased to 2.5%, the lowest since March 2021.
Under normal circumstances, that combination would fuel a broad rally. This time, it failed to move the needle.
The S&P 500 finished the week little changed. Technology stocks lagged, pressured after Cisco Systems posted weaker-than-expected margins.
Tech industry leaders are citing higher costs for memory and storage products amid a global supply crunch, reviving concerns that AI infrastructure spending may compress profits across the software and hardware ecosystem.
In Detroit, Ford Motor Co. moved higher despite missing earnings estimates as the 2026 guidance outperformed expectations. The automaker posted revenue of $42.45 billion, above the $41.53 billion consensus estimate, though down 5% from a year earlier.
“Ford delivered a strong 2025 in a dynamic and often volatile environment,” said Jim Farley, president and CEO of Ford.
The automaker absorbed roughly $2 billion in losses tied to fires at a Novelis aluminum supplier plant in New York. It also faced a $2 billion net tariff headwind, including $1 billion in unexpected costs after delays in auto-parts tariff credits. Results included $15.5 billion in special charges linked largely to scaling back electric vehicle plans announced in December.
Shares rallied for three straight sessions after the report and tested January highs. Farley also approved higher bonuses for 75,000 salaried employees, citing better vehicle quality.
Benzinga is a financial news and data company headquartered in Detroit.