The Davy Digest - 9th February 2026

The S&P 500 finished flat last week despite a short-lived US government shutdown and  AI-driven turbulence in the technology sector, while European equities recorded modest gains. In the US, January’s Manufacturing Purchasing Manager Index survey reached a 3-year high of 52.6, signalling a rebound in manufacturing activity. Labour data, however, continued to disappoint with job openings falling to 6.54 million, well below the 7.25 million consensus expectation.

Central bank meetings were also in focus last week, with policymakers convening in Europe, the United Kingdom, Australia, and India. The European Central Bank, Bank of England, and Reserve Bank of India all left policy rates unchanged – in line with expectations – while Australia became the first major economy to hike rates in 2026.

Last week's highlights

	ISM Manufacturing & Services PMIs (02/02 & 04/02) – Manufacturing came in at 52.6, a 3-year high.  JOLTS Job Openings (03/02) – Job openings fell to 6.54 million in December, worse than expected.
	January Eurozone Consumer Price Index (04/02) – Slowed to 1.7% YoY, in line with expectations. European Central Bank Meeting (05/02) – Kept rates unchanged, as expected
	Bank of England Meeting (05/02) – Kept rates unchanged, as expected
	Reserve Bank of Australia Meeting (03/02) – Increased rates to 3.85% Reserve Bank of India Meeting (06/02) – Held rates steady at 5.25%

This week, we will receive delayed data releases for inflation and the labour market following the end of the government shutdown in the US. In the United Kingdom, Gross Domestic Product growth figures will be released for the final quarter of 2026 alongside an industrial production print. Further afield, inflation figures will be released in China.

What's on the radar

	January Retail Sales (10/02) January Jobs Report (11/02) January Consumer Price Index (13/02)
	Lagarde Speech (09/02)
	Gross Domestic Product (12/02) Industrial Production (12/02)
	China Inflation (10/02)

Chart of the moment - Software update

Source: Bloomberg, February 6th 2026. Software and hardware classifications based on S&P 500 sectors.

• It was a volatile week for the technology sector, with software companies selling off aggressively as concerns about the threat of artificial intelligence came to the fore.
• The sell off was sparked on Tuesday by the release of Anthropic’s new tool designed to automate legal work. Together with other recent launches such as Claude Code, it fuelled fears about the future of the software sector.
• The weakness was not confined to software vendors, spilling over to asset managers with significant exposure to the space through their own investments.
• In contrast, hardware continued to perform well, supported by firm demand for equipment related to AI and its broader infrastructure.

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