February 11, 2026

The Dow Jones Industrial Average (DJIA) achieved its most significant milestone in years by closing above 50,000 for the first time on Friday, February 6, 2026. The trek from 40,000 to 50,000 took just 431 trading days, the fastest 10,000-point advance in the index's 129-year history. Unlike previous tech-only rallies, this milestone was a "Blue-Chip Renaissance" powered by a mix of "Old Economy" giants and new tech additions like Nvidia (NVDA) and Caterpillar (CAT). 

Topics of the Week:

  • Benefiting from the Global AI Boom: Many key components of artificial intelligence hardware — like advanced chips — come from countries such as Taiwan, giving EM strong exposure to AI‑driven growth. China and South Korea are also leading players in AI and the AI supply chain.

  • Technical Trends Are Improving: The EM index recently moved above important resistance levels, and many EM stocks are in long-term uptrends, signaling strengthening market momentum. 

 

What We Are Watching:

  • High Earnings Expectations Leave Little Room for Error: EM earnings forecasts are strong, but if companies miss targets, markets could react negatively.
  • Geopolitical Risks Remain Elevated: Global tensions — including sanctions and trade disruptions — could create headwinds for EM growth and currency stability. 

 

Index Data & Market Performance 

 

Data as of Market Close 2.9.25 

source: gemini.google.com*

In Focus

Retail sales reported on Tuesday were flat (0.0%), missing expectations of a 0.4% gain. This suggests consumer spending may be more fragile than initially estimated heading into the new year. In addition to economic data, several high-profile companies are reporting quarterly results this week: Coca-Cola (KO), Spotify (SPOT), CVS Health (CVS), Cisco Systems (CSCO), and McDonald's (MCD).

Tuesday – Retail Sales (Delayed from December)

Wednesday – Employment Cost Index

Thursday – January Jobs Report, Unemployment Rate

Friday - Consumer Price Index (CPI), Real Earnings

What's Trending

Global Engine: AI + EM

The relationship between Artificial Intelligence (AI) and Emerging Markets (EM) has shifted from a theoretical connection to a critical supply-and-demand dependency. While the U.S. leads in AI software (like those from OpenAI or Google), Emerging Markets provide the hardware or the physical backbone that allows AI to exist.

The Symbiotic Relationship

The US/Google Loop: The U.S. "Hyperscalers" like Google are currently engaged in what has been called the "largest infrastructure build-out in human history". They are spending record sums upwards of $650 billion collectively in 2026, to build the data centers that run AI.

The EM Connection: Most of the $650 billion flows directly to Emerging Markets as payment for physical chips from Taiwan, memory from Korea, and server components from China and Mexico required to build that infrastructure.

 

What are Emerging Markets? An Emerging Market (EM) is the economy of a developing nation that is becoming more engaged with global markets as it transitions toward a "developed" status. These nations are typically characterized by rapid industrialization and high GDP growth rates.

Region

Core Role in AI

USA

Designs advanced models and develops software ecosystems. Examples: Nvidia, Microsoft, Apple

Taiwan

Makes the Logic Chips (The "Brains")

South Korea

Makes the High-Speed Memory (The "Recall")

China

Hardware Infrastructure & AI Application

India

AI Software Services

 

Disclosures

*The data for the total returns of the S&P 500, Dow Jones 30, and NASDAQ Composite are compiled and published by several financial news outlets, index providers, and government/academic sources.

Based on typical financial data providers and the search results, here are the likely sources for this data:

  • S&P Dow Jones Indices (S&P Global): This is the official index calculator for the S&P 500 and the Dow Jones Industrial Average (DJIA). They publish index data, including total returns, in daily, weekly, and monthly reports/commentary.
  • Nasdaq Global Indexes: They are the official index calculator for the NASDAQ Composite. They also publish fact sheets and performance reports with total return data.
  • Financial News Agencies and Publications: News outlets like The Associated Press (AP) and financial publications like Investopedia regularly report on the daily, weekly, and year-to-date (YTD) returns of these major U.S. indexes.
  • Federal Reserve Economic Data (FRED) / St. Louis Fed: FRED, maintained by the Federal Reserve Bank of St. Louis, is a public resource that often includes daily closing levels for indices like the S&P 500, which can be used to calculate returns.
  • Financial Data Platforms (e.g., Bloomberg, YCharts, MSCI): Professional and commercial financial data providers often republish or calculate returns based on the official index data for their clients.