New York, February 3, 2026, 14:11 (EST)
- S&P 500 and Nasdaq fall as software and cloud names slide; the Dow holds slightly higher
- Palantir gains after results, but broader tech selling weighs on sentiment
- Walmart tops $1 trillion in market value as investors brace for more earnings and delayed U.S. data
U.S. stocks fell on Tuesday as selling in software and cloud shares dragged the S&P 500 and the Nasdaq lower, wiping out some early optimism tied to Palantir’s quarterly report.
The slide lands in the thick of earnings season, with investors trying to figure out whether big spending on AI — short for artificial intelligence — is turning into profits fast enough to justify valuations. Alphabet and Amazon are among the heavyweight reports due later this week. (Yahoo)
The macro backdrop has gone messy, too. The U.S. Labor Department said it would not publish the January jobs report as scheduled because of a partial federal government shutdown, and other releases such as JOLTS — the Job Openings and Labor Turnover Survey — have been pushed back. “The release will be rescheduled upon the resumption of government funding,” Emily Liddel, an associate commissioner at the Bureau of Labor Statistics, told Reuters. (Reuters)
At 11:12 a.m. ET, the S&P 500 was down 0.45% and the Nasdaq was off 1.02%, while the Dow Jones Industrial Average was up 0.08%, Reuters reported. The S&P 500 software and services index fell 3.3%, with names such as Microsoft, Salesforce and Snowflake leading the retreat. “We’ve got an expensive market and expectations are really high,” said John Campbell, senior portfolio manager at Allspring Global Investments. (Reuters)
Palantir moved the other way. The data analytics firm said U.S. government revenue rose 66% in the fourth quarter to $570 million, lifting total revenue to $1.41 billion, above analysts’ estimate of $1.33 billion, Reuters reported. CEO Alex Karp said the company was “supporting in a critical manner, some of the most interesting, intricate, unusual operations” the U.S. government has been involved in. (Reuters)
Away from mega-cap tech, small caps held firmer as money drifted into parts of the market that have lagged. The Russell 2000 index was up around 0.9% in late morning trade, Reuters said.
Walmart, meanwhile, crossed a milestone usually reserved for Silicon Valley. The retailer became the first in its industry to hit a $1 trillion market value, helped by a year-long rally and investor enthusiasm for its tech push, including AI and e-commerce investment, Reuters reported. “They’ve gone from just being the local retailer for good prices to really embracing technology,” said Eric Clark, chief investment officer at Accuvest Global Advisors, as Walmart faces competition from Amazon as well as Aldi and Target. (Reuters)
Some big single-name moves cut across sectors. PayPal shares sank after the payments firm forecast 2026 profit below estimates, while Disney slipped after naming theme parks chief Josh D’Amaro as CEO, Reuters said.
Markets also watched the fallout from a sharp pullback in precious metals. Gold and silver extended losses after the nomination of Kevin Warsh as the next Federal Reserve chair, and after CME Group raised margin requirements — the cash traders must post to keep futures positions — Reuters reported. “Gold and silver are on a rollercoaster ride,” said SP Angel analyst John Meyer, while Deutsche Bank’s Michael Hsueh wrote that “the conditions do not appear primed for a sustained reversal.” (Reuters)
The selloff followed a rebound the day before. On Monday, the S&P 500 rose 0.5% to 6,976.44, the Dow climbed 1.1% to 49,407.66 and the Nasdaq added 0.6% to 23,592.11, according to the Associated Press. (Apnews)
But the path from here looks jumpy. A House vote to restore funding was expected on Tuesday, though passage was not guaranteed, Reuters reported, and traders also face major tech earnings later this week that could either steady the AI trade or snap it again. (Reuters)
