#MarketRebound The current #MarketRebound in February 2026 is a transition from a volatile "AI panic" to a durable, broad-based recovery. Here is the snapshot:
1. The Drivers
* Fiscal Stimulus: The One Big Beautiful Bill Act (OBBBA) is injecting $150B into the consumer sector via tax refunds this month.
* Corporate Relief: A $129B reduction in corporate tax burdens is driving a surge in business investment (Capex).
* Monetary Pivot: Easing inflation (now at 2.4%) has shifted expectations toward Federal Reserve rate cuts by July, stabilizing bond yields.
2. Market Shift: Broadening Out
The rally has moved beyond "Big Tech." 8 out of 11 S&P 500 sectors hit all-time highs recently, with Energy, Industrials, and Small-caps outperforming as investors rotate into the "real economy."
3. Key Risks
* Legal Wildcards: A pending Supreme Court ruling on tariff powers could trigger sudden volatility.
* AI Realism: Investors are now demanding tangible profit growth from AI, rather than just hype.
The Bottom Line: Markets are moving from "recovery" to "growth," supported by domestic stimulus and a cooling Fed.
