Market Update 2/13/26

Who’s next?

It’s been quite a week in the stock market as entire sectors have reacted to the perceived “threat” of AI and its ability to reshape historical norms. First, it was software, as Anthropic’s plugin, designed to create workflows, that caused significant moves across technology companies. Then, financials saw pressure following Altruist’s tax planning release. Real estate followed amid concerns that AI-driven productivity could reduce employment needs and office space demand. Yesterday, the narrative shifted to shipping as Algorhythm Holdings, a small firm that previously made in-car karaoke machines, announced new software claiming it could scale freight volumes by 400%. If all this seems hard to believe, just look at the sector performance, as certain freight stocks were down sharply.

What this has reinforced is that no sector is viewed as immune from technological change, and we expect markets to continue adjusting as investors digest new developments. However, perceived “threats” do not always translate into lasting realities, and sharp price movements can create opportunity. Many companies are partnering with firms like Anthropic to improve efficiency and strengthen their business models. What’s critical is to evaluate each security carefully to determine whether AI is likely to hinder or enhance its long-term outlook. When it enhances the model, periods of volatility can present attractive opportunities as stocks become temporarily mispriced. Staying disciplined and prepared remains key.