New York, February 4, 2026, 12:05 (EST)
- At midday, U.S. stocks showed a mixed picture, as chip and software shares dragged the Nasdaq down.
- AMD dropped following a weaker-than-expected revenue forecast for the first quarter, adding strain to the AI chip sector.
- After a selloff sparked by AI software concerns, global markets found their footing, and gold climbed back over $5,000.
U.S. stocks showed mixed results Wednesday, dragged down by a decline in Advanced Micro Devices that reignited skepticism around the AI trade and weighed on software stocks.
The S&P 500 and Nasdaq dipped, despite the Dow nudging up slightly, following yesterday’s steep tech sell-off. Investors were also gearing up for Alphabet’s earnings report, set to drop after the bell.
This recent shift hits hard since the market’s top performers have ridden the wave of an AI spending surge. Traders are now wrestling with a tougher scenario: AI tools could actually erode the software fees that fueled the rally.
Another concern lurks beneath. A small group of mega-cap tech giants is powering much of the index rally, and every earnings release has morphed into a verdict on whether massive data-center investments will translate into clear profits.
At 11:32 a.m. ET, the Dow climbed 388.76 points, or 0.79%, hitting 49,629.75. The S&P 500 dipped 0.24%, and the Nasdaq slipped 1.09%, according to Reuters data.
AMD dropped roughly 12%, pulling down other chip stocks. Nvidia, Intel, and Broadcom all slid, pushing the S&P 500 technology sector lower.
“If you’ve got legacy software that’s old and clunky, you’re a ripe target for AI,” said Josh Chastant, portfolio manager at GuideStone Funds. He also mentioned he was “a bit bearish on software.” Reuters
AMD forecasted first-quarter revenue around $9.8 billion, give or take $300 million, down from $10.27 billion in Q4. Bernstein’s Stacy Rasgon called the results essentially “inline” once you exclude a $390 million lift from AI chip sales to China, allowed under a U.S. license. He added that near-term AI figures “are not really inflecting.” Reuters
Not all stocks were down. Server maker Super Micro surged after raising its annual revenue forecast, while drugmaker Eli Lilly climbed on a 2026 profit outlook that topped expectations, giving investors a break from pure tech names.
Outside the U.S., global shares rebounded from earlier dips, though the pressure on software stocks remained. IG’s chief markets strategist Chris Beauchamp remarked, “Anthropic is now… parking its tanks on their lawn,” as investors digested the impact of new “plug-ins” — add-on tools — for Anthropic’s Claude Cowork agent. These raised concerns about potential disruption across data, services, and software sectors. Reuters
Commodities remained unsettled. Spot gold pushed above $5,000 an ounce again, and silver gained ground. Oil prices also strengthened following a recent jump linked to Middle East tensions.
Alphabet shares slipped about 2% before the company’s earnings report after the market close. Investors are focused on the “Magnificent Seven,” the handful of mega-cap U.S. tech giants, looking for evidence that their hefty AI investments are starting to pay off. Earlier, a Yahoo Finance live blog noted U.S. stock futures were uneven ahead of Google’s numbers. Yahoo
Bloomberg reported a slide in U.S. stocks, dragged down by AMD’s earnings and growing concerns around AI. Bloomberg
Behind the scenes, investors are digesting a week packed with policy noise. On Tuesday, President Donald Trump signed a spending bill to end the partial government shutdown that had pushed back critical labor-market data. Meanwhile, a private payrolls report from ADP revealed January job growth was weaker than analysts had anticipated.
The next move might turn out to be more straightforward than many expect. Should Alphabet’s earnings or guidance fall short, chip and software stocks could face a sharp selloff. On the other hand, if the results ease concerns over AI spending returns, the market may rebound just as swiftly. Meanwhile, geopolitics and volatile commodities loom in the background.
