It was another tough outing for the market yesterday, which is living in a strange artificial intelligence (AI) nightmare. Investors flocked to safe-haven sectors, as Technology (XLK) sold off again.

There was red across the entire “factor” quilt, and small-caps took the brunt of the damage.

AI Slams Trucking

Expeditors International of Washington and other trucking logistics companies suffered their greatest one-day loss since the Long-Term Capital Management (LTCM) crisis of 1998 due to AI fears.

No body of research adequately explains what we saw yesterday. A former karaoke company has rebranded as an AI logistics company and unveiled a new platform that could make logistics companies obsolete.

Algorhythm Holdings (RIME) has made a series of announcements this week that have finally caught Wall Street's attention.

The U.S. Securities and Exchange Commission (SEC) filings for the company go back to August 1996. The stock traded as high as $144,000 back in 2002. 

I’m not sure how many business iterations there have been, but it was “The Singing Machines” company before it shifted gears (pun intended) to trucking logistics.

If the company is truly positioned to displace current industry leaders, the stock would have been up much more yesterday. This is a story of potential losses and upheaval, evident immediately in the stock market. It’s madness because it's overkill now, but is it overkill a year from now?  It’s a warning, but the wave of selling is too extreme. 

Software Meltdown Continues

It was a brutal session with widespread declines across all indices.

The top decliners list was a smorgasbord of names that had been hot stocks.

The software (IGV) meltdown has cooled, but the damage is extensive.

This morning, market bears are hoping the Consumer Price Index (CPI) report finally gives them something to cheer. January CPI reports are usually hotter than in prior months. If the number is benign, “Fed Hawks” will have to consider rate cuts.

Today’s Session

This week, I saw numerous articles on the significant impact of tariffs. I suspect these were released deliberately to time with a hotter-than-expected CPI report. The problem is CPI was tame, coming in much better than the December read and below Wall Street consensus.

The ten-year yield (TNX) is moving toward 4.0% again.

Still, something is gnawing at the stock market, and the overall bias remains to the downside.

Comments

wow you mention RIME and it jumps 230% from 1.20 to close at 3.58... J Jay Marshall on 2/13/2026 4:04:33 PM

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