After reviewing the latest market developments on Investing.com today, February 11, 2026, I’m observing a notably cautious sentiment across global financial markets, largely driven by a complex cocktail of macroeconomic data, evolving central bank rhetoric, and geopolitical tensions.
Today, equity markets across Asia opened lower, echoing Friday’s risk-off sentiment in the U.S. following a hotter-than-expected CPI print. The year-over-year U.S. inflation rate came in at 3.4%, exceeding consensus forecasts of 3.2%. This slight deviation, though not massive, reinforces the belief that the Federal Reserve may delay the anticipated rate cuts, at least until Q2 or even Q3. Futures tied to the Fed funds rate now suggest just two 25-bps cuts in 2026, compared to the four priced in just earlier this year. The dollar index (DXY) responded with a strong upward move, climbing to 104.9—its highest level in over two months—as investors recalibrated expectations.
In bond markets, yields on U.S. 10-year Treasuries rose to 4.26%, marking a sharp reversal from last week’s dovish momentum sparked by weaker employment numbers. The bond market seems to be sending mixed signals, with short-end yields pricing in prolonged tight policy, while longer-duration bonds show a flattening curve—indicative of ongoing concerns about long-term economic growth. As someone who closely watches the yield curve for recessionary signals, this flattening cannot be ignored. It suggests the potential for slower economic activity in the latter half of the year, even as inflation remains stubborn in the near term.
Turning to the equity space, tech stocks led the retreat on the NASDAQ, which dropped nearly 1.3% in early futures trading. The sector, particularly high-growth and AI-related names, has been highly sensitive to interest rate expectations. With the 10-year yield pushing higher, the discounted present value of future earnings becomes less attractive. Meanwhile, cyclical sectors like energy and financials showed relative resilience, supported by rising oil prices and improved bank margins in a higher rate environment.
On the commodities front, Brent crude is trading above $84 per barrel, buoyed by continued supply concerns in the Middle East and stronger-than-expected Chinese import data released this morning. The recent Israeli military escalation in southern Lebanon, combined with persistent attacks in the Red Sea, has reignited fears of supply disruptions. As someone factoring geopolitical risks into commodity forecasts, I increasingly view oil as a potential driver of renewed inflation pressures if the conflict does not de-escalate in the coming weeks.
Meanwhile, gold, which usually benefits from geopolitical anxiety, is surprisingly muted today, trading around $2,020 per ounce. The stronger dollar and higher yields are likely suppressing its appeal despite heightened uncertainty. However, we may see renewed buying interest if geopolitical risks continue to escalate or if equity volatility spikes.
In Europe, the ECB’s more dovish tone last week is also being challenged by persistent inflation in services, particularly in Germany and France. While the euro has been under pressure against the dollar—trading below 1.07—it is unclear whether the ECB can justify early rate cuts given the stickiness in core prices. This divergence in monetary policy paths versus the Fed could keep European equities relatively underperforming in the near term.
As I interpret these mixed signals, the market seems to be in a state of recalibration, with investors caught between optimism about potential rate cuts and realism about lingering inflation and geopolitical instability.