New York, Feb 15, 2026, 13:30 EST — Market closed.
- Industrial Select Sector SPDR Fund (XLI) finished Friday’s session 0.82% higher, closing out at $174.17.
- Softer inflation figures left investors balancing that optimism with turbulence from AI-driven swings and ongoing policy questions.
- This week, investors are eyeing the Fed minutes and the central bank’s favored PCE inflation gauge—both seen as crucial tests.
Industrial stocks in the U.S. are heading into the holiday-shortened week with a bit of a buffer. The Industrial Select Sector SPDR Fund (XLI) finished Friday’s session up 0.82% at $174.17, and after-hours quotes were showing $174.62. (Yahoo Finance)
This is key as the calendar is loaded with macro headlines, and rates remain the focal point. Industrials usually track shifts in growth outlooks and borrowing costs. Right now, the market’s wrestling with whether 2026 cuts are a given—or just a possibility.
Industrial stocks are catching a bid as money moves out of tech and into laggards elsewhere in the U.S. market. “We’re starting to get an embedded leadership shift that’s undeniable at this point,” said Mark Hackett, chief market strategist at Nationwide. (Reuters)
Inflation is driving the narrative right now. The Consumer Price Index posted a 0.2% climb in January—annualized, that’s a 2.4% increase, just under the 2.5% economists had been looking for, according to Reuters. “The inflation report is better than expected … This is good news for the Fed,” said Phil Orlando, chief market strategist at Federated Hermes. (Reuters)
The S&P 500 barely budged Friday, while the Nasdaq edged lower, with nerves showing over big tech’s earnings punch and the ongoing AI story. CME’s FedWatch tool, per Reuters, showed traders now penciling in a 52.3% chance of a June 25 basis point rate cut, up from 48.9%. “Large cap tech stocks continue to be an anchor on the market,” Rosenblatt Securities’ Michael James said. (Reuters)
Industrials feel that mix on both sides. Softer inflation often gives a lift to rate-sensitive names, but the sector still needs earnings to prove demand isn’t slipping, just leveling out.
Company earnings are in focus as well. Deere, the farm equipment heavyweight, is set to post results Thursday. The company’s guidance tends to be a proxy for capital expenditures and demand trends in sections of the industrial sector. (Investopedia)
This week, all eyes are on the Federal Reserve minutes coming Wednesday, followed by Friday’s release of the personal consumption expenditures (PCE) price index — the central bank’s favored inflation barometer — plus the advance estimate for fourth-quarter GDP, according to S&P Global Market Intelligence. The firm also points to durable goods orders and industrial production as releases to keep on the radar. (S&P Global)
There’s always a chance the inflation narrative flares up again, or the Fed minutes come off less dovish than markets want—yields spike, cyclical stocks get clipped. Trade policy remains a swing factor for industrial input costs and companies’ pricing power. As for AI-fueled volatility, it’s already proven it can ricochet across sectors fast, and unpredictably.
After the long weekend, markets are open again, and rate expectations continue to call the shots. Investors are watching Friday’s PCE inflation report and the GDP figures—those numbers could be make-or-break for industrials this week.
