Capital markets experienced continued volatility last week as a heavy slate of economic data coincided with rising concerns around artificial intelligence driven disruption across multiple sectors. Economic reports were mixed but generally constructive, with strong payroll growth, a decline in the unemployment rate, and cooler-than-expected inflation helping reinforce the view that U.S. fundamentals remain intact. At the same time, weaker December retail sales signaled some late-2025 consumer fatigue following an extended period of above-trend spending. Equity markets sold off, led by mega-cap technology stocks, as investors reacted to AI developments perceived as threats to established business models rather than growth catalysts. This weakness spilled into other sectors including financial services and telecommunications, contributing to broader risk-asset declines. Fixed income markets responded positively to softer inflation data, with Treasury yields falling, particularly longer-term rates, as bond prices rose. Overall, the week reflected a growing tension between solid macroeconomic fundamentals and an increasingly fragile market sentiment driven by volatility and rapid narrative shifts.