Cooling Inflation, Strong Jobs & AI Rotation: What’s Really Driving This Market

This week’s market narrative is more nuanced than the headlines suggest.Inflation cooled again in January, reinforcing soft-landing hopes, while the labor market surprised to the upside with stronger-than-expected job growth. At the same time, AI disruption fears continued to pressure software and tech stocks, driving rotation into value and defensive sectors.In this episode, I break down:• Why cooling inflation supports stability — but not automatic upside• How a resilient labor market affects the Fed’s rate outlook• The ongoing repricing in software and AI-related names• Why the S&P 500 is stalling below 7,000• What sector rotation tells us about liquidity and risk appetiteThe key theme this week isn’t panic — it’s transition. Capital isn’t leaving the market. It’s reallocating.As always, I share what I’m watching next and how I’m positioning into the week ahead.