New York, Jan 31, 2026, 05:26 ET — Market closed.
- Applied Materials dropped $19.09, or 5.6%, on Friday, dragged down alongside other chip-equipment stocks and the wider tech sector.
- Traders are focused on rates, inflation figures, and the upcoming chip-sector earnings reports as we head into next week.
- Applied will hold an industry event in Korea from Feb. 11 to 13, with its earnings call scheduled for Feb. 12.
Applied Materials shares dropped $19.09, or 5.6%, to close Friday at $322.32, putting the chip-equipment maker in a weaker spot ahead of Monday’s reopening.
This shift is crucial since semiconductor tool stocks now stand as a barometer for two major issues: the duration of chipmakers’ investment in new factories and equipment, and the prospect of persistently high interest rates. When these debates collide, the stocks tend to swing sharply.
Wall Street’s key indexes ended Friday in the red, as investors digested Donald Trump’s selection of ex-Fed governor Kevin Warsh to replace Chair Jerome Powell, coupled with a hotter-than-anticipated inflation report. KLA Corp dropped 15.2%, one of the biggest decliners despite beating earnings estimates.
KLA’s results stirred a familiar concern: strong numbers might fall short if the bar’s set too high. “The stock had already sprinted into the print,” noted Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, following KLA’s report. He highlighted “steady growth” instead of “renewed acceleration.” Reuters
Selling pressure hit chip-equipment stocks hard. Applied dipped 5.57% on Friday, and Lam Research slid 5.93%, MarketWatch data shows.
Rate jitters lingered. The Producer Price Index, measuring what businesses pay, rose 0.5% in December—well above the 0.2% forecast. Investors dug into what this signals for future rates. “Volatility is more a function of inflationary indicators… and earnings being digested,” Terry Sandven of U.S. Bank Asset Management noted. Reuters
Applied Materials has some dates lined up for its Korea division. The unit is set to join SEMICON Korea in Seoul from Feb. 11-13, featuring sessions on epitaxy, plasma etching, CMP, and advanced packaging.
Traders are zeroing in on earnings next. Applied announced its fiscal first-quarter 2026 earnings call will take place on Feb. 12.
The January U.S. jobs report arrives Feb. 6, per the U.S. Bureau of Labor Statistics schedule. That data tends to jolt Treasury yields — and chip stocks often react sharply in the initial minutes.
But there’s a risk. If chipmakers cut back on capital spending—the funds they allocate to factories and equipment—tool orders can stall quickly. On top of that, new trade policy tensions could further obscure demand forecasts.
Earnings season remains intense next week, with investors closely watching if big tech can back up their hefty spending after recent sector volatility, Reuters noted in a “Week Ahead” column. This cautious mood often ripples through the chip supply chain. Reuters
Applied’s Monday open will set the initial tone, but all eyes are on Feb. 12 for the next major catalyst. Traders want updates on wafer-fab equipment — the gear behind chip manufacturing — and any shifts in customer demand heading into spring.
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