**Market Wrap – Friday, February 13, 2026** In the final trading session of the week, market sentiment shifted to risk-off as major indices across the globe declined sharply. The Dow Jones Industrial Average fell by 1.72% to 49,315.95, continuing a bearish trend that reflected growing unease among investors. Notable headlines underscored this risk-off tone. According to MarketWatch, a partial U.S. government shutdown appeared inevitable, with funding for key departments in limbo. Additionally, concerns regarding inflation persist as reports indicate that millions of Americans have yet to see significant impacts from recent rate hikes on their bills. These factors combined to incite cautious behavior amongst market participants, resulting in notable declines across various asset classes. The economic calendar featured the Consumer Price Index (CPI) figures for January, which came in slightly below expectations with a monthly increase of 0.3% versus a forecast of 0.4% and a year-on-year reading at 2.5%, down from 2.7% previously. Although this softer inflation data aligns with hopes for a stabilization of prices, it did little to bolster confidence in the equity markets. The inflation breakeven rates reflected this uncertainty, with the 5-year breakeven inflation falling to 2.42%, down 7 bp, raising questions about future Federal Reserve policy moves. In contrast, Treasury yields dropped significantly, with the 30-year Treasury yield reducing by 10 bp to 4.72%, signaling market participants’ flight to safety. Equities took a hit with mega-cap stocks facing considerable pressure. Apple registered the largest loss among the megacaps, down 4.23%, while Nvidia and Tesla also saw significant declines of 3.20% and 2.67%, respectively. Market sentiment around tech stocks has been fluctuating heavily, recently affected by Bitcoin's surge above $69,000, which was partly attributed to a bullish narrative among retail traders attempting to short-squeeze positions. Despite the enthusiasm in the crypto space, the overarching risk tone in equity markets was evident as sectors like technology and consumer discretionary fell, while utilities saw a notable increase of 4.33%, indicating a shift to defensives. In commodities, energy prices continued to decline, with WTI crude oil down 3.07% and natural gas plunging nearly 6.5%. Precious metals did not fare much better: silver fell sharply by 9.50%, aligning with a broader trend of risk aversion. In agricultural products, orange juice futures dropped by 9.14%, representing significant volatility within that segment. The unusual move in utilities, with a z-score of +3.07σ, highlights a notable divergence in investor preference, suggesting an increased rotation into safer sectors amid market turmoil. Looking forward, investors should pay attention to upcoming economic calendar releases, particularly next week’s preliminary GDP figures and employment data. Anticipating these releases could lead to increased volatility and trading opportunities. Additionally, earnings reports from major companies such as CoinBase, Roku, and Coop will be crucial, as any discrepancies between projections and actual results could affect the broader market trend. Overall, the current environment is characterized by a cautious but vigilant risk tone, as uncertainty regarding government steadfastness, inflation control, and sector rotation persists. With markets digesting tightening liquidity and weighing mixed economic signals, investors are advised to remain observant of upcoming data releases and sector movements.