NEW YORK, Feb 3, 2026, 14:16 EST
- S&P 500 down about 1.3% and Dow Jones Industrial Average off about 0.9% as early gains faded; Nasdaq slid around 2%
- Palantir rose after lifting 2026 revenue outlook; Teradyne traded higher after an upbeat forecast
- Traders await Alphabet and Amazon results later this week; a partial U.S. government shutdown has delayed key data
Wall Street stocks fell on Tuesday, with the Nasdaq leading losses after the market opened higher. The S&P 500 was down about 1.3% and the Dow was off roughly 0.9% in early afternoon trading. (Reuters)
The slide comes as investors brace for a heavy stretch of results, with roughly a quarter of the S&P 500 due to report this week and earnings growth for the December quarter now seen near 11%, according to LSEG data. Stock index futures — contracts that hint at where indexes may open — were firmer early on; “growing signs that traders are ready to re-engage with pro-risk positions” are showing up, Chris Weston at Pepperstone wrote. The shutdown has delayed the January jobs report and the JOLTS job-openings release, a key read on labor demand. (MarketScreener)
Selling centered on software and cloud names, with Microsoft lower and shares of Intuit and Atlassian sliding, alongside other high-multiple tech. “We’ve got an expensive market and expectations are really high,” said John Campbell at Allspring Global Investments, pointing to pockets “priced for perfection” as traders reassess who really wins from artificial intelligence, or AI. Small caps fared better, with the Russell 2000 holding up. (Reuters)
The jitters are not just a U.S. story. In Europe, shares in information, software and ad-linked groups slid after Anthropic launched a legal plug-in for its Claude chatbot, sharpening fears that new AI tools could undercut parts of the business models at data and content firms. RELX, Wolters Kluwer and Thomson Reuters were among the names hit; “the software companies were assumed to be winners from AI,” Lars Skovgaard at Danske Bank said. (Reuters)
Palantir, by contrast, got a lift from its outlook after reporting quarterly revenue of $1.41 billion and strong U.S. government growth. Chief executive Alex Karp defended the firm’s surveillance tools in a letter, saying the “state and its agents can see only what ought to be seen,” arguing that is built into its systems. Still, Zavier Wong at eToro cautioned that “valuation question marks won’t disappear,” with the stock trading on a steep earnings multiple — a rough gauge of how much investors pay for each dollar of profit. (Reuters)
But the mood is jumpy. Big tech reports later this week could reset expectations around whether massive AI spending is paying off, and the shutdown-driven gaps in economic data make it harder to read the backdrop for growth — or for interest-rate bets.
Away from tech, Walmart became the first retailer to hit a $1 trillion market value, extending a rally that has pushed its shares up nearly 26% over the past year. Eric Clark, chief investment officer at Accuvest Global Advisors, pointed to a “massive digital business transformation” as the company leaned into technology and automation. (Reuters)
PayPal shares sank about 19% after the board replaced chief executive Alex Chriss and issued a profit outlook that missed expectations. The company said Enrique Lores of HP would take over on March 1; finance chief Jamie Miller will serve as interim CEO. “We saw pressure across our retail merchant portfolio, particularly among lower and middle-income consumers,” Miller said on a call. (Reuters)
Walt Disney said it had tapped parks chief Josh D’Amaro as CEO, with Bob Iger slated to become senior adviser and stay on the board through year-end. The parks-and-experiences unit is its main profit engine, and it posted nearly $10 billion in operating profit last fiscal year; Paolo Pescatore at PP Foresight said: “These are big boots to fill.” (Reuters)
