NEW YORK, Feb 3, 2026, 10:01 (ET) — Regular session
- Dow inches up in early trading, but broader tech stocks fall behind
- Earnings season enters a hectic phase as attention returns to AI-related results
- Traders remain cautious amid stalled Washington funding vote and postponed data releases
The Dow Jones Industrial Average climbed 0.32%, reaching 49,564.69 in early Tuesday trading. The S&P 500 slipped 0.02%, and the Nasdaq Composite dropped 0.22%. (Reuters)
The mood shifted back to earnings and the AI sector. Palantir Technologies surged after reporting results, with Teradyne also climbing. PayPal, however, fell following a gloomy profit forecast for 2026. “(Palantir) earnings definitely have helped revive the AI trade this morning,” noted John Campbell, senior portfolio manager at Allspring Global Investments. (CNA)
Washington loomed over the tape again. The U.S. House of Representatives aimed to pass a Trump-backed deal to end the shutdown, but the numbers were razor-thin in a chamber where Republicans hold a 218-214 majority. Donald Trump pushed lawmakers to keep the bill unchanged. Mike Johnson argued voter ID provisions shouldn’t be part of the spending package, while Hakeem Jeffries said Democrats planned to vote “no” on the initial procedural move. (Reuters)
Monday’s session gave the Dow a solid boost, rising 1.05% to 49,407.66. Chipmakers and AI-related stocks pushed the S&P 500 and Nasdaq higher, while small caps outperformed. “The fundamentals are good and earnings are strong. We have positive surprises both for revenues and earnings, pretty much across the board,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder. (Reuters)
The shutdown is already throwing off this week’s data calendar. The Bureau of Labor Statistics announced the January employment report won’t come out Friday, and the December JOLTS report, which tracks job openings, is also delayed. Emily Liddel said the jobs report will be rescheduled once funding is restored. Former BLS commissioner Erica Groshen added, “The staff is already under extreme pressure.” (Reuters)
Federal Reserve chatter remained in focus. Thomas Barkin described the Fed’s position as a “delicate balance” while attempting to complete the “last mile” in reducing inflation without derailing the economy. He added, “So far so good.” (Reuters)
Oil prices found footing after yesterday’s sharp slide rattled energy stocks. Brent crude gained 0.68% to $66.75 a barrel, while U.S. crude climbed 0.9% to $62.70. Traders are factoring in the Iran risk premium ahead of Friday’s nuclear talks in Turkey, alongside OPEC+’s decision to hold March output steady. (Reuters)
Health care stocks sparked action on the Dow. Merck projected 2026 sales between $65.5 billion and $67.0 billion, falling short of analyst expectations. The company also highlighted looming challenges from Keytruda patent expirations. Still, CEO Rob Davis expressed confidence, saying, “As I look at the strategic drivers of this company, I’m actually very confident.” (Reuters)
Commodity whiplash remains very much in play. Silver soared to a record $121.6 on Jan. 29, only to plunge over 25% the next day as stop-loss orders piled up. Ole Hansen from Saxo Bank described it as “a massive, massive retail frenzy.” (Reuters)
The Dow’s setup can make days like this feel strange. Because it’s price-weighted, stocks with higher prices move the index more than cheaper ones, no matter their market cap. That means just a few stocks can pull it off course from the wider market.
But leverage works both ways. When the market is costly and expectations run high, any slip-up gets punished quickly. Meanwhile, shutdown-related data gaps leave traders scrambling to predict the next moves on rates and growth.
Coming next: earnings from Advanced Micro Devices and Super Micro Computer, set to drop after the bell. Investors will be looking closely for clues on whether AI spending is translating into actual sales — and if the broader market rally is starting to spread beyond tech. (Reuters)
