New York, February 2, 2026, 17:19 EST — After-hours update
- Dow jumps 1.05%, driven by chipmakers and small caps; S&P 500 finishes just shy of its record
- U.S. factory survey shows growth in January, but tariff concerns persist
- Friday’s jobs report postponed due to partial shutdown; House set to vote Tuesday
The Dow Jones Industrial Average (.DJI) jumped 515.19 points, or 1.05%, closing at 49,407.66 on Monday. The S&P 500 rose 0.54% to 6,976.44, just shy of its all-time high. The Nasdaq added 0.56%, boosted by chipmakers and AI-related stocks rallying. On the downside, Walt Disney fell and energy shares lagged. Meanwhile, the VIX, a volatility gauge based on options, dropped to 16.5. “The fundamentals are good and earnings are strong,” said Tim Ghriskey of Ingalls & Snyder. Reuters
Timing is key. In the coming days, earnings from Alphabet and Amazon will drop alongside new jobs and services data. Investors are questioning if the rally can extend past the AI darlings.
Factory data gave markets a boost. The Institute for Supply Management’s manufacturing Purchasing Managers Index, which signals growth above 50, climbed to 52.6 in January from 47.9, driven by a surge in new orders. Last week, the Federal Reserve kept its benchmark rate steady between 3.50% and 3.75%, while policymakers highlighted tariffs as a persistent inflation threat. “Tariffs and further tariff threats are still freezing small businesses,” said Mark Streiber of FHN Financial. Reuters
The data flow is starting to get complicated. The Bureau of Labor Statistics announced the January employment report won’t come out this Friday due to the partial federal government shutdown. It will be delayed until funding is restored. Erica Groshen, a former BLS commissioner, cautioned that the shutdown could further strain the agency, which was already operating with about 25% fewer staff and many leadership positions unfilled before the shutdown.
The shutdown battle has entered the market equation. The U.S. House is set to vote Tuesday on a stopgap funding bill, but a faction of Republicans wants immigration enforcement linked to the measure, casting doubt on its passage. “They’re still working on it,” Tom Emmer told reporters Monday. Reuters
Oil weighed on sentiment again. Brent dropped $3.02, closing at $66.30 a barrel, while U.S. crude slid $3.07 to $62.14. The moves followed Donald Trump’s comment that Iran was “seriously talking” with Washington, which eased concerns over supply disruptions. Officials also confirmed nuclear talks are set to resume Friday. Reuters
Big Tech guidance is the next major hurdle for stocks. Alphabet plans to release its earnings ahead of a conference call scheduled for Wednesday, Feb. 4 at 4:30 p.m. ET. Investors will be zeroing in on any updates about capital expenditure, especially spending related to AI infrastructure.
Amazon plans to release its earnings on Thursday, Feb. 5, followed by a conference call at 5 p.m. ET. Investors will focus on the performance of its cloud division and whether consumer spending held up through the end of the year.
Volatility could remain infectious. A steep drop in commodities—partly linked to Trump’s pick of Kevin Warsh to head the Fed—has pushed CME Group to hike margins on metal futures, making traders put up more cash to keep their positions. “The decision … suggests investors view Warsh as more hawkish,” said Vivek Dhar, strategist at Commonwealth Bank of Australia. Reuters
Tuesday’s House vote on funding is coming up and will determine how soon the economic calendar reemerges. Alphabet reports Wednesday after the close, with Amazon set for Thursday — a midweek lineup that can move the Dow, even if the day’s data is light.
