NEW YORK, Feb 6, 2026, 15:45 EST
- Dow crosses 50,000 for the first time, lifted by gains in Nvidia and Caterpillar
- Investors refocus on Big Tech AI spending after a sharp selloff in tech and crypto
- Bitcoin, gold and oil steady after Thursday’s rout, with U.S.-Iran talks in focus
The Dow Jones Industrial Average pushed above 50,000 points for the first time on Friday, a milestone for the blue-chip index as stocks snapped back from a week of AI-driven jitters. Nvidia and Caterpillar helped lead the move. 1
The rally landed after three straight sessions of selling that hit big technology names and spilled into crypto. Investors have been weighing whether the artificial intelligence boom is turning into a capital-spending race that pressures profits, at least in the near term.
On Thursday, global stocks slid and Wall Street fell as weak U.S. labor signals and outsized spending plans hit risk appetite. Amazon flagged a 2026 spending plan of $200 billion versus analysts’ expectations of $144.67 billion, while Alphabet outlined capital spending of up to $185 billion, 55% above estimates, a Reuters report showed. Ameriprise Financial’s Anthony Saglimbene said, “If big tech and AI lose more momentum, it’s likely that broader averages like the S&P 500 will see more pressure.” 2
By Friday, traders crept back into the same names they had been dumping. Amazon’s plans helped lift an estimated combined 2026 AI spending total from Amazon, Microsoft, Alphabet and Meta Platforms to about $600 billion, and some of the fear cooled. “The market looks like it was getting a bit overdone to the downside,” said Robert Pavlik, a senior portfolio manager at Dakota Wealth. 3
The S&P 500 rose 1.73% to 6,915.96 and the Nasdaq added 1.91% to 22,970.31, while the Dow was up 2.24% at 50,005.78. Nvidia, Advanced Micro Devices and Broadcom jumped more than 7%, and the PHLX semiconductor index — a gauge of chip stocks — gained 5.5%. “There’s enough evidence that there’s real demand for AI products,” said Ross Mayfield, an investment strategy analyst at Baird. 4
Amazon’s spending shock still hung over the session. The company projected about $200 billion in capital expenditures, or capex — long-term spending on things like data centers and servers — up from $131 billion in 2025, and the stock slid. CEO Andy Jassy pushed back on comparisons with smaller rivals, saying AWS growth looks different at scale, while Aptus Capital Advisors’ Dave Wagner said the market “dislikes the substantial amount of money” going into capex. 5
Alphabet has been feeding the same debate. The Google parent said it was targeting $175 billion to $185 billion in capex this year, up from $91.45 billion in 2025, as it tries to relieve “compute capacity” constraints — the chips and data centers needed to run AI. CEO Sundar Pichai said, “We are seeing our AI investments and infrastructure drive revenue and growth across the board,” and warned the company could stay supply-constrained through the year. 6
The bounce spread well beyond the chip complex. CrowdStrike and Palantir rose more than 4%, and the S&P 500 software and services index snapped a seven-session losing streak, though it was still headed for an around 8% weekly drop, its worst since March 2020.
Earnings offered some cover. More than half of S&P 500 companies have reported results, and about 80% have topped analysts’ expectations, according to LSEG data cited by Reuters. Molina Healthcare sank after a weak 2026 profit forecast, while Roblox rallied on stronger bookings guidance.
Crypto remained the shaky undercard. Bitcoin fell as low as $63,295.74 on Thursday, its weakest level since October 2024, with about $1 billion in bitcoin positions liquidated in 24 hours, Reuters reported. “It’s clear the crypto market is now in full capitulation mode,” said Nic Puckrin, co-founder of Coin Bureau. 7
On Friday, bitcoin tried to steady and precious metals rebounded after heavy selling. Spot gold was up about 4% near $4,959 an ounce and silver rose nearly 8% toward $76.77, after traders hunted for bargains.
Oil prices firmed as investors watched U.S.-Iran talks in Oman. Iran’s foreign minister Abbas Araqchi called the opening round a “good start” and said talks would continue. 8
In rates and currencies, traders leaned harder into expectations for a Federal Reserve rate cut as soon as March after weak labor-market data. Two-year U.S. yields bounced to around 3.51% after touching a more than three-month low, while the yen held steadier ahead of Sunday’s Japanese election.
But the whiplash is not over. Investors still have to see whether the AI spending wave translates into durable revenue and cash flow — and how much competition AI itself creates for software and data-services firms that have been priced for smooth growth.
The S&P 500 was still about 1% below its record close set last week, and the Nasdaq remained about 4% below its record closing high from October. The rebound was broad, but it is still the AI trade setting the tempo.
