New York, Feb 5, 2026, 13:43 EST — Regular session
- Dow falls roughly 1% amid fresh tech sell-off hitting blue chips
- Alphabet’s spending plans and Qualcomm’s guidance put pressure on AI-related stocks
- Amazon reports earnings after the bell; investors also watch for postponed U.S. economic data
The Dow Jones Industrial Average (.DJI) dropped roughly 1% Thursday, dragged down by fresh selling in mega-cap tech stocks hitting the blue-chip gauge. The Dow slid 502.57 points, or 1.02%, settling at 48,998.73. The S&P 500 and Nasdaq also closed lower. (Investing)
The pullback follows a day when the Dow ended 260.31 points higher, or up 0.53%, at 49,501.30, despite the Nasdaq slipping. “The market is suddenly skeptical and concerned,” said Jed Ellerbroek, portfolio manager at Argent Capital Management, noting investor jitters around the AI trade’s valuation. (Reuters)
Why it matters now: investors want to figure out what the upcoming round of capital spending will actually deliver—and what it won’t. The Dow, a price-weighted index of 30 U.S. blue-chip stocks, means that shares with higher prices can move the index more than their market size might indicate. (S&P Global)
Alphabet sparked fresh jitters by projecting 2026 capital spending between $175 billion and $185 billion, nearly doubling the $91.45 billion planned for 2025, as it ramps up computing power for AI. CEO Sundar Pichai told analysts, “We are seeing our AI investments and infrastructure drive revenue and growth across the board.” (Reuters)
Qualcomm dropped after forecasting quarterly revenue and profit below Wall Street’s expectations, dragging down software and data services stocks like ServiceNow and Salesforce. The CBOE volatility index—known as the market’s “fear gauge”—soared to its highest level in over two months. Amazon slipped ahead of its earnings report due after the close. Snap surged after beating revenue estimates, while Estee Lauder plunged on a weaker-than-expected annual outlook. “The AI trade … is perhaps the extinguisher this year,” said Melissa Brown, SimCorp’s managing director of investment decision research. (Reuters)
Economic data weighed on sentiment. Weekly jobless claims increased by 22,000, reaching 231,000, while continuing claims went up to 1.844 million, according to the latest report. Another release showed job openings dropped to their lowest point in over five years in December, signaling a slowdown in the labor market from previous highs. (Reuters)
A Challenger, Gray & Christmas survey raised fresh concerns, revealing that U.S. employers announced layoffs in January at their highest level for that month in 17 years. The spike was partly due to cuts linked to lost business contracts and a shaky economic outlook. (Reuters)
Anthony Saglimbene, Ameriprise’s chief market strategist, noted the move away from expensive growth stocks has evolved into a wider defensive stance. “The market seems to be on the defensive,” he said. He warned that if the largest stocks lose steam, “broader averages will face more pressure.” (Reuters)
One risk for skeptics remains that the “AI destroys software” story might be oversimplified. Anthropic unveiled an upgraded AI model on Thursday as investors dumped traditional software stocks. Still, Scott White, the company’s head of product for enterprise, emphasized the goal is to integrate AI with existing tools to enhance their usefulness—not to replace them entirely. (Reuters)
What’s on deck: Amazon plans to release its fourth-quarter 2025 earnings after the U.S. market closes, with a call scheduled for 5:00 p.m. ET. Meanwhile, the Labor Department pushed January’s jobs report to next Wednesday, following a government shutdown delay. The January CPI figures are now set for release next Friday. (Amazon)
