Bond Rally and Tech Sell-Off Shake Global Markets

On February 12, 2026, financial markets were shaken by a combination of a corporate bond rally and renewed technology sector selling.

Corporate bonds surged, pushing credit spreads to historic lows. Investors seeking higher yields compressed risk premiums, making lower-rated bonds appear more attractive but increasing market vulnerability to shocks. Companies such as Alphabet and Oracle issued long-term debt to take advantage of favorable conditions.

In the U.S., the stock market fell sharply. The S&P 500 declined 1.6%, and the Nasdaq Composite dropped 2%, driven by losses in major tech companies including Apple, Meta, Amazon, and Cisco. Safe-haven Treasuries rallied, and yields fell as investors moved away from riskier assets.

In Europe, the European Commission announced plans to deepen the single market and accelerate the Capital Markets Union initiative, aiming to unlock €10 trillion in EU capital for cross-border investment. The first phase is expected to be completed by June 2026.

Investors are also monitoring key economic indicators, including weekly U.S. jobless claims, existing home sales, and upcoming inflation data that could influence Federal Reserve rate decisions. Pre-market stock futures indicated modest gains, while energy and consumer sectors showed mixed movements.