Market Summary: What Happened Yesterday and What Awaits Us Today (February 13):

A sharp decline on Wall Street led by technology, volatility in commodities and cryptocurrencies, and crucial anticipation of inflation data and the Fed's direction.

U.S. stock markets closed sharply lower on Thursday as investors trimmed exposure to technology stocks amid a wave of economic data releases and corporate earnings. The tech-heavy Nasdaq dropped 2%, the S&P 500 fell about 1.6%, and the Dow Jones Industrial Average declined 1.3%, shedding roughly 670 points. This marked the Dow’s second consecutive decline following a three-session rally that had pushed it to record highs.

Large-cap tech stocks came under broad selling pressure, with Apple leading losses at around 5%. The information technology sector was the weakest performer within the S&P 500, down roughly 2.7%. Still, some storage-technology companies bucked the trend: Seagate rose about 6%, SanDisk gained roughly 5%, and Western Digital climbed close to 4% on sustained demand for data storage solutions.

Economic data added to market caution. Weekly jobless claims came in at 227,000 — slightly above expectations but below the prior week’s figure. Existing home sales fell sharply to 3.91 million units, signalling ongoing weakness in the housing market. Investors are now focused on upcoming inflation figures, which could shape expectations for future Federal Reserve interest-rate policy.

Bond markets reflected a defensive tone, with the 10-year Treasury yield slipping below 4.11%. Commodities weakened, with gold down around 3%, silver dropping roughly 10%, and crude oil falling nearly 3%. Bitcoin traded near $65,500 after earlier volatility, while the U.S. dollar index edged higher.

Outlook

Markets are likely to remain cautious ahead of inflation data. A hotter-than-expected reading could keep pressure on tech stocks and reinforce expectations for higher interest rates, while softer inflation could trigger a relief rally and improve overall risk sentiment.