Metals Slide as Software Stocks Face AI Pressure

Precious and industrial metals sold off on February 17, with both macro developments and technical factors in play. According to one report, gold futures dropped back below $4,900 per ounce and silver slid under $74 per ounce, pressured by signs of progress in U.S.–Iran discussions and a stronger U.S. dollar. Another market commentary noted that COMEX silver futures fell 5.72% on the day, marking their lowest close since the first trading day of the year and the second‑lowest close of 2026.

Copper also weakened, with prices down about 2% and closing just under their 200‑day moving average. The break of this widely watched technical level was described as a “subtle signal” that could point to further selling pressure. Gold futures were reported down roughly 3% but still moving within what was characterized as a sideways trading range, with no major technical support levels yet violated.

Market participants also focused on longer‑term expectations for precious metals. A Bank of America fund manager survey cited in the metals report indicated a projected peak gold price of $6,200 per ounce, although current trading remains well below that level.

In U.S. equities, price action reflected an ongoing rotation between sectors. A heat‑map review of transportation names showed broad gains and a rebound after what was described as a "drubbing" the prior week. While many Dow transportation constituents recovered, some logistics companies such as C.H. Robinson, Expeditors and RXO remained in the red on a multi‑day view. Despite the recent volatility, the Dow Jones Transportation Average was still up about 12.5% year‑to‑date, compared with a 3% year‑to‑date rise for the Dow Industrials.

By contrast, brokers and asset managers continued to face selling pressure. A separate sector view showed these financial intermediaries under heavier and more persistent downside than transports, extending losses that began earlier. Real estate shares were more mixed, with some winners and notable laggards; one example highlighted was CWK, still down 24% over a four‑day span.

Software shares remained a focal point for investors worried about artificial intelligence disruption. One analyst described the environment as a renewed “SaaS‑mageddon,” noting that, year‑to‑date, a software index was down 23% while semiconductors were up 17.5%. On a one‑year basis the dispersion was even starker, with semiconductors up 58% against a 24% decline for software. Commentary from Stocktwits’ editor‑in‑chief suggested that investors are unsure how AI will affect growth rates and valuations, creating a “sell now, ask questions later” mentality in the software space.

Away from broad sector moves, ReposiTrak reported detailed results for its fiscal Q2 2026 ended December 31, 2025. Revenue rose 7% year‑over‑year to $5.9 million from $5.5 million, while total operating expenses declined 2% despite continued investment in its ReposiTrak Traceability Network (RTN). Income from operations increased 34% to $1.8 million from $1.4 million, and GAAP net income rose 9% to $1.7 million.

GAAP net income attributable to common shareholders climbed 13% to $1.6 million, with basic and diluted earnings per share of $0.09, also up 13% year‑over‑year. For the fiscal year‑to‑date, revenue was up 8% to $11.8 million, operating income grew 31% to $3.7 million, and net income to common shareholders increased 13% to $3.4 million. The company reported that recurring SaaS revenue now represents over 98% of total revenue, up from 62% in 2020, after converting more than $7 million of one‑time revenue.

ReposiTrak emphasized its balance sheet strength, with total cash of $28.7 million and no bank debt. Since 2020, it has paid off over $6 million in bank debt, reduced annual operating expenses from roughly $19 million to $16 million, and expanded net margin from 8% to above 30%. The company has also bought back approximately 2.22 million common shares for $14.5 million since inception and redeemed about 642,000 preferred shares for $6.9 million.

Management highlighted continued investment in its AI‑enabled “touchless traceability” patents and systems, citing supplier data error rates of 50%–70% and positioning its detect‑and‑correct approach as a core differentiator as FDA traceability deadlines approach. Executives reiterated a capital allocation framework targeting the return of 50% of annual cash from operations to shareholders through dividends, buybacks and preferred redemptions, while retaining the remainder to build cash and support growth.