Cooling Inflation, Strong Jobs & AI Rotation: What’s Really Driving This Market

This week’s market narrative is more nuanced than the headlines suggest. Inflation cooled again in January, reinforcing soft-landing hopes, while the labor market surprised to the upside with stronger-than-expected job growth. At the same time, AI disruption fears continued to pressure software and tech stocks, driving rotation into value and defensive sectors. In this episode, I break down: • Why cooling inflation supports stability — but not automatic upside • How a resilient labor market affects the Fed’s rate outlook • The ongoing repricing in software and AI-related names • Why the S&P 500 is stalling below 7,000 • What sector rotation tells us about liquidity and risk appetite The key theme this week isn’t panic — it’s transition. Capital isn’t leaving the market. It’s reallocating. As always, I share what I’m watching next and how I’m positioning into the week ahead.

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Cooling Inflation, Strong Jobs & AI Rotation: What’s Really Driving This Market is an episode from G.A.R Capital Podcast by Carlos Garcia .

This episode is 00:14:22 long.

This episode was published on Feb 17, 2026.

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