Global Highlights for Next Week: Software Stocks Face Sell-Off Test, US Non-Farm Payrolls and Inflation Reports to Be Released in Quick Succession

CryptocurrencySniper · 2026-02-08T01:04:36+00:00

Next week, the market will focus on the performance of the software sector, silver, and cryptocurrencies, while earnings reports will validate the rationale behind stock market volatility. The U.S. non-farm payrolls report and CPI data will influence discussions on interest rate cuts. Additionally, China's inflation data and Japan's election results will also be key points of attention. The Middle East situation has eased, and the U.S. will continue negotiations with Iran.

CryptocurrencySniper

2026-02-08 01:04:36

Abstract generation in progress

After a vigorous rebound in various risk assets on Friday, next week’s key focus remains on the software sector, silver, cryptocurrencies, and other recently volatile assets, as well as whether the trend of capital flow into cyclical and value stocks can continue.

As a comparison, the S&P 500 Software and Services Index plunged more than 15% over a week, while the Dow Jones Industrial Average, driven by cyclical stocks and Nvidia, closed on Friday for the first time in history surpassing the 50,000-point mark.

(Dow Jones daily chart, source: TradingView)

Deutsche Bank’s Head of Macro and Thematic Research Jim Reid warned in a report that, since the US stock market remains mainly driven by the technology sector, the ongoing weakness in this industry could pose difficulties for the index.

Reid wrote: “The market can digest sustained rotation for quite some time, even if some sectors outperform significantly, and this may not immediately show obvious pressure at the index level. But the longer and deeper the sell-off in the dominant sectors, the more difficult it becomes for the overall index to withstand the drag caused by it.”

Among the companies reporting earnings next week are Unity, AppLovin, S&P Global, Robinhood, which are at the center of the storm. Their performance and management commentary will validate whether this round of sell-off is justified. As the earnings season winds down, well-known companies like Coca-Cola and McDonald’s will also release their results. Investors will also pay attention to Cisco, Applied Materials, and other industry chain companies that “sell shovels to AI giants” for the latest AI demand updates.

Due to the US government’s brief “shutdown” this week, next Wednesday and Friday will see a rare occurrence of the non-farm payrolls report and CPI being released in close succession.

Apart from the US labor market, this employment report will also include the usual annual data adjustments, which could remove up to 1 million jobs’ “fudge factor.” Currently, market expectations for January non-farm payroll growth are centered around 60,000 to 80,000; falling below this range could ignite discussions about rate cuts.

In Asia, China’s January inflation and money supply data are expected to be released next week. Chinese stock investors will also welcome the Lunar New Year holiday after trading ends next Friday, resuming trading on February 24.

Another risk point next week is the Japanese House of Representatives election on Sunday, with markets closely watching how the election results will impact Japan’s fiscal and monetary policies. Especially amid high debt levels, investors will focus on politicians’ verbal commitments on “where to raise funds.”

The Middle East situation is heading toward stabilization. After indirect talks between US and Iranian representatives in Oman’s capital on Friday, US President Trump said “the talks went very well,” and another round of talks is scheduled for next week. Iran also called the talks “a good start,” with no follow-up schedule confirmed yet.

Finally, as a hot topic in US public opinion, members of Congress will begin reviewing the unredacted “Epstein files” starting next Monday, followed by Attorney General Pam Bondi’s appearance at a congressional hearing next Wednesday. It is reported that only the 3 million publicly released documents are available for review; the additional over 3 million documents not yet made public are not included.

Overview of Important Financial Events Next Week (Beijing Time)

Monday (February 9): Eurozone February Sentix Investor Confidence Index

Tuesday (February 10): US December Retail Sales Data, US December Import Price Index

Wednesday (February 11): China January CPI, US January Non-Farm Payrolls Report

Thursday (February 12): UK Q4 GDP Preliminary Estimate

Friday (February 13): US January CPI

Other: The People’s Bank of China is expected to release January money supply data during the week.

(Source: Caixin)

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