Finance
Trading Day: Bears barge bulls aside
Published by Global Banking & Finance Review®
Posted on February 12, 2026
4 min readLast updated: February 12, 2026
Quick Summary
Market sentiment dipped as bears overpowered bulls, causing a selloff in stocks and commodities. Investors turned to safe assets, while US-China relations showed improvement.
Market Sentiment Dips as Bears Overpower Bulls in Trading Day
Market Overview and Key Developments
ORLANDO, Florida, Feb 12 (Reuters) - Market sentiment soured rapidly on Thursday, sparking a steep selloff in U.S. stocks, precious metals, commodities and cryptocurrencies, as investors flocked to the relative safety of Treasuries, the dollar and Swiss franc.
In my column today, I ask the simple question: what will it take for the Fed to raise rates? Officials and market pricing are still leaning towards further easing, but the case for the next move being a hike is just as strong. Maybe stronger.
If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.
1. U.S. existing home sales drop to more than two-year lowin January 2. Trump rate hopes and CBO budget math don't chime: MikeDolan 3. Erratic U.S. is spurring "middle powers" into action andinvestors are noticing 4. EU leaders agree to accelerate single market, instruggle to compete with U.S. and China 5. EXCLUSIVE-U.S.-China trade detente fuels mothballing ofkey China tech curbsKey Market Moves
Today's Key Market Moves
* STOCKS: Main U.S. indices fall 1-2%, Europe in the redtoo. Asia higher, but likely to open lower on Friday. * SECTORS/SHARES: Only three S&P 500 sectors rise,utilities +1.5%; Eight sectors fall, tech -2.7%, financials andenergy both -2%. Cisco Systems -12%, Apple -5%. * FX: Dollar rises, but so do yen and Swiss franc.Norwegian crown the biggest G10 decliner on oil weakness. * BONDS: Treasury yields fall, curve bull flattens.30-year yield tumbles 9 bps after historic auction. 10-year Bundyield lowest in over two months. * COMMODITIES/METALS: Precious metals tank, silver -11%,platinum and palladium -5%. Oil -3%, U.S. copper -3%.Today's Talking Points
* Fragile and volatile
Impact of AI on Software Companies
Selling begot selling on Thursday, leading to sharp falls on Wall Street and a renewed wave of liquidation in assets that had been pumped up by frenzied speculation in recent months like gold, silver and bitcoin.
Worries over AI's impact on software companies surfaced anew, but there was no clear trigger. This is significant, as it shows how fragile sentiment is, and how stretched positioning still is in certain markets. Perhaps one reassuring element of the shake-out is Treasuries and other government bonds fulfilled their traditional role as the safe-haven of choice.
* Going long the long bond
U.S.-China Relations and Market Implications
Thursday's $25 billion auction of 30-year U.S. bonds was historic. Bid-to-cover of 2.66 was the highest since January 2018, the 4.75% high yield was 2 bps below the prevailing rate at time of issue, and primary dealers' take of 5.9% was the lowest since at least 2008, according to Exante Data.
Little wonder the 30-year yield tumbled 9 bps, its biggest daily drop since October. Does this suggest dealers expect a soft CPI print on Friday? Or fear wider "risk-off" market turbulence? Maybe. What it does show is there's life in the long bond yet.
* U.S.-China tensions thaw ahead of summit
Presidents Donald Trump and Xi Jinping are expected to meet in Beijing in early April, and if current signals are accurate, it will be a cordial summit that could thaw tensions between the two superpowers and ease global trade pressures.
Washington has shelved a number of key tech security measures aimed at Beijing, the yuan is trading at three-year highs against the dollar, and reports suggest the two leaders may extend a trade truce for as long as a year. As U.S. Treasury Secretary Scott Bessent said this week, U.S.-China relations are "in a very comfortable place."
What could move markets tomorrow?
* New Zealand manufacturing PMI (January) * Taiwan GDP (Q4, revised) * China house prices (January) * European Central Bank board member Luis de Guindos speaks * Euro zone GDP (Q4, flash estimate) * Germany wholesale inflation (January) * Bank of England chief economist Huw Pill speaks * U.S. CPI inflation (January)Want to receive Trading Day in your inbox every weekday morning? Sign up for my newsletter here.
Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
(By Jamie McGeever; Editing by Nia Williams)
Key Takeaways
- •Market sentiment turned negative, leading to a selloff.
- •Investors moved to safe assets like Treasuries and the dollar.
- •Fed rate hike discussions remain uncertain.
- •US-China relations show signs of improvement.
- •AI's impact on software companies raises concerns.
Frequently Asked Questions about Trading Day: Bears barge bulls aside
1What is market sentiment?
Market sentiment refers to the overall attitude of investors towards a particular security or financial market. It is often influenced by news, events, and economic indicators.
2What are precious metals?
Precious metals are rare, naturally occurring metallic elements that have high economic value. Common examples include gold, silver, platinum, and palladium.
3What is a Treasury bond?
A Treasury bond is a long-term debt security issued by the U.S. Department of the Treasury. It has a maturity of more than 10 years and pays interest every six months.
4What is a selloff in financial markets?
A selloff occurs when a large number of investors sell their assets, causing prices to drop significantly. This can happen due to negative news or economic indicators.
5What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).
