NEW YORK, February 7, 2026, 13:21 (EST) — Market closed
Communication services names start the week lagging, as their flagship ETF, the Communication Services Select Sector SPDR Fund (XLC), lost 0.39% Friday, settling at $115.76.
Timing played a big role. While the S&P 500 jumped roughly 2% and nearly every sector climbed, Communication Services broke ranks—one of just two sectors to finish lower on Friday, a split traders didn’t miss. News Corp (NWSA) dragged the group down, shedding 6% to become its worst performer.
XLC leans heavily on a handful of names. Meta Platforms (META) accounts for just over 20% of the index, while Alphabet’s two share classes together contribute about another 20%, the fund’s latest top-holdings data show. Then come Verizon (VZ), AT&T (T), Comcast (CMCSA), and Netflix (NFLX), each at middling single-digit percentages.
Alphabet’s Class C shares (GOOG) slipped for a fourth consecutive session, losing 2.48% to close at $323.10 on Friday. Meta was also lower, dropping 1.31% to $661.46. The broader market looked much stronger: the S&P 500 added 1.97%, while the Dow surged 2.47% to end at 50,115.67.
One question keeps dogging investors: are tech giants pouring too much cash into “AI” — artificial intelligence — too fast? According to Reuters, big tech companies have plans for about $600 billion in capex by 2026. That number is spooking some, as worries about whether profits can keep pace pile up alongside surging AI infrastructure demand. “It’s a de-risking trade,” said Andrew Wells, chief investment officer at SanJac Alpha in Houston. Reuters
The Dow’s jump on Friday put a spotlight on the underlying tension rather than easing it. “What’s driven it recently has been the broadening that we have seen in the market … other than just the tech, AI trade,” said Chuck Carlson, chief executive officer at Horizon Investment Services. Reuters
Some comms stocks managed gains. Comcast finished up 1.69% at $31.37. Netflix picked up 1.64%, Disney tacked on 3.55%. Those moves helped soften losses from the internet giants.
Telecom stocks showed a mixed picture—Verizon slipped 1.68% to $46.31, AT&T edged down 0.66% to $27.13, and T-Mobile US (TMUS) lost 2.21%, closing at $197.39. That spread weighed on sector ETFs heavy on both carriers and internet platforms, keeping the group stuck in place.
Still, when the focus tightens on a few giants, it’s a double-edged sword. Alphabet and Meta lose ground again as investors question spending, and XLC risks slipping, even if the rest of the market holds up. Any hotter inflation number has the potential to drive Treasury yields up, putting more pressure on stocks that are sensitive to valuations.
Company news isn’t quiet next week either. T-Mobile will hold its Q4 2025 earnings call and provide a capital markets day update on Feb. 11, starting at 8:30 a.m. ET, per the investor relations schedule.
Both macro reports are set to drop close together. The U.S. Employment Situation report for January lands on Feb. 11 at 8:30 a.m. ET, while the Bureau of Labor Statistics has the January Consumer Price Index lined up for Feb. 13, also at 8:30 a.m. ET.
When markets open Monday, investors want to know if Friday’s split—surging indexes but lagging communication services—holds up. XLC faces a fast follow-up: jobs data, inflation numbers, and T-Mobile’s update all hit this week.
