JUST THE FACTS

Concern over the potential impacts of AI won out over the week's mostly positive economic reports. Friday's close saw the Dow and S&P gain, but it wasn't enough as the major indices all fell for the week.

The biggest drag on the markets this last week was a familiar one, but this time, it was a bit different. The usual concern of AI's costs and returns shifted to concern over how AI could disrupt entire sectors. 

The latest consumer price index was the good news on Friday. January's inflation cooled more than expected with overall yearly CPI sliding to its lowest in months and core CPI falling to its lowest in years.

The delayed jobs report delivered both a big surprise and a brutal look back. Last month, hirings soared past expectations as unemployment ticked down, but the final figure for hiring in 2025 was dismal.

All signs in the lead-up to last year's final shopping rush seemed to be pointing to a robust finish. The U.S. public, however, must have missed the memo. In the end, December's sales weren't exactly merry.

After a break on Monday, expect another heavy dose of numbers in the new week. Friday is the big day with the arrival of a new PCE report on inflation. Also ahead, a sentiment update and more earnings.