Sector Rotation gains momentum

👋 Hey Hustlrs
Welcome back to The Global Hustlr Weekly Update.
Every week, I recap the U.S. market to help you see what’s working and what it means for the week ahead.
In this edition, I’ll explain what really moved the markets, why it matters for your long-term wealth, and how you can stay on track as an African investing in US assets, even when things feel uncertain.

Let’s dive in.

☕️ QUICK BREW: THIS WEEK’S MARKET PULSE 🗞️
📈 U.S. stocks grind higher on choppy, data-heavy week.
📉 Fed minutes cool rate-cut hopes, keep yields volatile.
⚖️ Supreme Court strikes down new Trump tariffs, easing trade worries.
💻 AI + tech rebound late week, lifting Nasdaq leadership.
🛢️ Oil swings on Middle East tensions, whipsawing energy names.
🔮 Nvidia, mega-cap AI earnings next week could jolt sentiment.

🔑 WEEKLY MARKET SCOREBOARD (FEB 13–20, 2026): 

📈 S&P 500 +1.1%—grind higher, rotation underway
📉 Dow +0.3%—blue chips lag but steady
🚀 Nasdaq +1.5%—tech/AI bounce leads
🛠️ Russell 2000 +0.1%—small caps hold gains
🛢️ Crude Oil +5.8%—geopolitics rips supply
📊 10Y Bond—yields spike 4.3%, prices dip
💰 Gold +0.7%—safe haven grind continues
🥈 Silver +5.6%—oil proxy momentum
₿ Bitcoin -1.5%—risk-off, lags real assets

THE BIG STORIES

Trade Relief: Tariffs Off the Table (For Now)

The U.S. Supreme Court stopped a new round of Trump tariffs that had been worrying markets. These tariffs would have made global trade more difficult, just as supply chains are returning to normal. With this decision, a major risk disappeared, and investors felt more comfortable buying companies that depend on trade, such as industrials and consumer brands.

📌 Why it matters:
Tariffs = higher costs, slower growth, and pressure on global companies. 

AI & Tech: From Panic to Opportunity

Earlier this year, talk of “AI disruption” made investors nervous. Many worried that AI would hurt business models and jobs before it created new profits. 

This week, things changed. 

AI and big-tech stocks bounced back late in the week, with the Nasdaq leading as investors focused on demand for infrastructure like chips, data centres, cloud, and platforms that support AI. 

Now, markets are watching Nvidia and other large AI companies closely before their earnings next week.

📌 Why it matters:
AI isn’t going away—it’s becoming the new “internet moment.” For you, that means:
• Don’t chase every AI headline.
• Focus on high-quality “picks and shovels”: semiconductors, cloud, and strong, profitable platforms.
• Use ETFs to get diversified AI exposure instead of betting your future on one stock.

Oil & Energy: Geopolitics Back in the Driver’s Seat

Oil prices rose amid new tensions in the Middle East and supply concerns. This helped energy stocks but also made the market more volatile. Higher oil prices can boost profits for energy companies, but they also increase fuel and transport costs and can lead to higher inflation.

📌 Why it matters:
If you own energy stocks or broad market ETFs, these moves affect you. Rising oil can:
• Boost returns in energy and commodity-linked plays.
• Put upward pressure on inflation and interest rates, which can weigh on growth stocks.
For African investors, many of our home economies depend on commodities. Oil can be good for countries that export it, but it can hurt those that import it.

Earnings on Deck: Nvidia & the AI Titans

Looking ahead, the next big event is earnings from Nvidia and other large AI companies. 

These businesses are now central to the AI trend. A strong report could push tech and AI-focused indexes even higher. But if the results are weak or the outlook is cautious, the whole market could drop quickly because so much hope is tied to just a few big companies.

📌 Why it matters:
If your portfolio is mostly in tech, AI, or ETFs, next week could be very volatile, with prices moving up or down. It’s important to be prepared in advance, rather than reacting emotionally after the fact.

TOP SECTORAL PERFORMANCE 

🧩 S&P 500 Sector Scoreboard (Feb 16–20, 2026)

📱 Comm Services +2.3%—platforms lead rotation
🛒 Discretionary +1.7%—consumers back shopping
🛠️ Industrials +1.7%—tariffs blocked, factories hum
🏦 Financials +1.6%—rate fog lifts slowly
💻 Technology +1.6%—AI infra rebounds
🛢️ Energy +1.61%—oil geopolitics breakout
🩺 Health Care -0.6%—defensive rotation lag
🏗️ Materials -0.3%—profit taking hits
🏠 Real Estate -.1.58%—yields pressure REITs
⚡ Utilities -0.4%—safety trade exits
🥫 Staples -2.3%—week's biggest dog

💡 WHAT DOES THIS MEAN FOR YOUR INVESTMENTS?

Let’s connect all this to your actual money as an African professional investing globally.

1️⃣ Rates & Your Portfolio Mix
When rate cuts are delayed or uncertain, expensive stocks that depend on hype are more at risk. 

In contrast, strong companies with steady profits become more attractive.
• Consider leaning toward quality: strong balance sheets, real earnings, and durable cash flows.
• Growth is still fine—but don’t overpay. Avoid chasing names that only have “AI story” but no real profits.

2️⃣Sector Balance: Don’t Be a One-Trick Pony
Tech and AI stocks recovered well, but having 70 to 80 per cent of your portfolio in tech is still very risky.
• Think in “buckets”:
o Growth (Tech/AI, Discretionary)
o Stability (Health Care, Staples)
o Real Assets (Energy, Commodities)
• Even a simple 3–4 ETF portfolio can give you broad exposure without betting your future on one sector.

3️⃣ Oil & Inflation: Quiet Risk in the Background
When oil prices rise, inflation can slowly increase. This can then influence interest rates and, in turn, affect stock prices.
• If you want some hedge, a small allocation to energy or broad commodity exposure can balance your portfolio.
• But don’t overreact. Remember, you’re building wealth over the years, not trying to trade every news headline each week.

4️⃣ Earnings Season: Smart, Not Flashy
With Nvidia and other mega-caps reporting soon, market mood can flip quickly.
• Avoid “earnings gambling.” Don’t buy a single popular stock right before earnings, hoping for a big win.
• Instead, use ETFs or diversify across several leaders so one bad report doesn’t wreck your month.

📣 Final Sip

Remember, markets will always have distractions, whether it’s tariffs today, AI tomorrow, or rates next month. Wealth is built by investors who stay calm and stick to a clear, disciplined plan.

You don’t need to predict every twist in the U.S. market. You just need to consistently own great assets, stay diversified, and keep showing up.

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DISCLAIMER

The information provided in this newsletter is for informational purposes only and should not be taken as financial advice. Any investments or decisions made based on the information provided in this newsletter are the reader's sole responsibility. We recommend that readers conduct their own research and consult a qualified financial professional before making investment decisions. The author does not assume any responsibility for any losses or damages arising from using the information provided in this newsletter.