Sunday Review + Watchlist 2/8/26
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Market Recap
Happy Super Bowl Sunday! Last week the SPY 0.00%↑ narrowly finished down roughly -0.1%, the QQQ 0.00%↑ lagged with about a -1.8% drop, while the IWM 0.00%↑ outperformed with a +2.2% gain and the DOW 0.00%↑ climbed roughly +2.5% hitting all time highs, led by major cyclical names.
Rotation showed up clearly at the sector level. Industrials and economically sensitive names led, with stocks like CAT 0.00%↑ and DE 0.00%↑ holding firm and pushing higher even as tech slipped. Semiconductors were volatile midweek but caught a strong bid into Friday, with NVDA 0.00%↑ and AMD 0.00%↑ helping stabilize the Nasdaq late.
Crypto-linked equities also rebounded sharply alongside a bounce in Bitcoin, lifting names like COIN 0.00%↑ and HOOD 0.00%↑. Overall, the week was less about index direction and more about where money was flowing, and heading into next week, those leadership shifts are likely to stay front and center.
Earnings:
Earnings were a mixed but important driver last week, with only a handful of mega-cap reports, yet those releases still had an outsized impact on tech and AI-related stocks:
AMZN 0.00%↑ delivered Q4 results that beat on revenue and showed solid AWS growth, but shares sold off after management outlined a $200B 2026 cap-ex plan tied to AI and infrastructure spending. The size of that investment overshadowed the quarter itself and weighed on large-cap tech sentiment for much of the week.
GOOGL 0.00%↑ also reported last week, posting better-than-expected results and strong cloud growth. Similar to Amazon, the stock pulled back as investors focused on higher forward spending tied to AI infrastructure rather than the backward-looking beat.
PLTR 0.00%↑ delivered another strong quarter, with revenue and margins coming in ahead of expectations and continued strength tied to government contracts and AI-related demand. Shares initially traded sharply higher on the release, but reversed and sold off alongside broader weakness in software.
Small-cap runners were very quiet this week with only a handful of low-float names giving tradeable range. DKI, FATN, CIGL, and AIM offered decent intraday unwinds. On the junkier side, MOBX and BOXL gave quick pops and then bled back into their broader downtrends. Hoping to get more action once earnings season is over.
Watchlist:
IBIT 0.00%↑ SBIT 0.00%↑ Looking for continued bounce in Bitcoin.
HOOD 0.00%↑ / COIN 0.00%↑ Same plan with bitcoin. Hood announces earnings on Tuesday and Coin on Thursday
IGV 0.00%↑ / PLTR 0.00%↑ Not too confident in software giving a V-shaped bounce at this point. Feel like it had the chance to do it on Friday and didn’t. May be a choppy reversal.
ENPH 0.00%↑ Post earnings breakout watch
Trade Of The Week:
SLV 0.00%↑ bounce
SBIT 0.00%↑ bitcoin long bounce via SBIT short
