Amazon Slides Sharply: Correction or Long-Term Opportunity?

Amazon (AMZN) shares fell nearly 8% in pre-market trading, as investors reacted negatively to the company’s aggressive capital expenditure plans tied to artificial intelligence.

This concern extends beyond Amazon. In 2026, Big Tech’s combined AI-related spending is expected to exceed $600 billion, raising questions around:
• Near-term return on investment
• Margin pressure
• Monetization timelines

Amazon alone is projected to reach $200 billion in capex by 2026, primarily allocated to data centers, cloud infrastructure, and AI capabilities.

Key takeaway: Markets are punishing short-term profitability, but long-term investors may see this correction as an entry point into a dominant AI and cloud leader.

February Starts Strong on Wall Street: Small Caps and the Dow Lead

February 2026 opened with renewed optimism across U.S. equities.

• The Russell 2000 led gains, signaling increased appetite for small-cap stocks.
• The Dow Jones Industrial Average reached a new all-time high, approaching 49,400 points.

Drivers behind the rally include:
• Solid corporate earnings
• Improved economic sentiment
• Capital rotation away from mega-cap tech toward broader market exposure

The iShares Russell 2000 ETF has seen renewed inflows as investors reposition toward U.S. domestic growth.

Gold and Silver Outlook: Macquarie Raises 2026 Forecasts

Australian investment bank Macquarie Group, managing over $735 billion in assets, has revised its precious metals outlook upward for 2026.

Updated projections:
• Gold Q1 2026: $4,590/oz (previously $4,300)
• Gold average 2026: $4,323/oz
• Silver Q1 2026: $75/oz (previously $55)
• Silver average 2026: $62/oz

Key drivers include:
• Expected monetary easing
• Inflation hedging demand
• Rising industrial usage, particularly for silver

Conclusion: Precious metals continue to strengthen their role as both defensive and strategic assets for 2026.

Nvidia’s CEO Sets the Tone for the AI Cycle

Nvidia CEO Jensen Huang delivered clear signals on the current and future state of artificial intelligence:

• AI firms such as OpenAI and Anthropic are already generating revenue but remain constrained by computing capacity.
• There is no friction with OpenAI; demand for next-generation Nvidia chips continues to surge.
• Huang acknowledged China as a competitor, stating that “you can’t win globally if you give up the Chinese market.”
• He highlighted Meta as one of the most effective real-world users of AI technology.

His main concern: ensuring AI is efficient, scalable, and productive, not merely a speculative narrative.

Google Launches a Historic Debt Issuance

Alphabet (Google) announced one of the largest debt offerings in its history, aligning with the tech sector’s aggressive AI investment cycle:

• $15 billion in U.S. bonds
• €6.5 billion issued in Europe
• Up to eight tranches, with maturities ranging from 3 to 50 years

The longest maturity may offer a yield 1.35 percentage points above U.S. Treasuries, reflecting investor confidence in Google’s balance sheet.

According to Morgan Stanley, hyperscalers are expected to invest nearly $3 trillion in AI infrastructure by 2028, with roughly half funded through internal cash flows.

Final Thoughts | FXLIVE NEWS

The message from markets is clear:
• Tech sell-offs reflect valuation resets, not the end of the AI cycle.
• Artificial intelligence, precious metals, and sector rotation define the 2026 landscape.
• Leading corporations are raising capital today to dominate the next decade.

At FXLIVE CAPITAL, we continue to track these shifts to help traders and investors anticipate opportunities, manage risk, and understand the real market narrative.