NEW YORK, Feb 3, 2026, 14:16 EST
- The S&P 500 slipped roughly 1.3%, while the Dow Jones Industrial Average fell about 0.9% after morning gains evaporated; the Nasdaq dropped close to 2%
- Palantir climbed following an upgraded 2026 revenue forecast; Teradyne also gained on a positive outlook
- Traders are waiting on Alphabet and Amazon earnings later this week, while a partial U.S. government shutdown has pushed back important data releases
Wall Street stocks dipped Tuesday, with the Nasdaq taking the biggest hit despite a strong start to the session. The S&P 500 slid roughly 1.3%, while the Dow lost about 0.9% by early afternoon.
The slide arrives as investors gear up for a busy week of results, with about a quarter of the S&P 500 set to report earnings. LSEG data now points to roughly 11% growth for the December quarter. Early trading showed firmer stock index futures, hinting at a potential rebound. Chris Weston at Pepperstone noted “growing signs that traders are ready to re-engage with pro-risk positions.” The shutdown has pushed back the January jobs report and the JOLTS job-openings data, crucial for gauging labor demand. MarketScreener
Pressure hit software and cloud stocks, dragging Microsoft down while Intuit and Atlassian shares slipped, along with other pricey tech names. John Campbell of Allspring Global Investments said, “We’ve got an expensive market and expectations are really high,” highlighting pockets “priced for perfection” as investors rethink which companies will truly benefit from artificial intelligence, or AI. Small caps showed more resilience, with the Russell 2000 holding steady. Reuters
It’s not just a U.S. phenomenon. European shares in information, software, and ad-related companies took a hit after Anthropic released a legal plug-in for its Claude chatbot, stoking worries that AI advancements could disrupt revenue streams for data and content businesses. Stocks in RELX, Wolters Kluwer, and Thomson Reuters were among those knocked down. “The software companies were assumed to be winners from AI,” noted Lars Skovgaard at Danske Bank. Reuters
Palantir got a boost following its quarterly revenue report of $1.41 billion, driven by robust growth in U.S. government contracts. CEO Alex Karp defended the company’s surveillance technology in a letter, insisting that “the state and its agents can see only what ought to be seen,” a principle built into their systems. However, Zavier Wong from eToro warned that “valuation question marks won’t disappear,” noting the stock still trades at a high earnings multiple—a rough measure of what investors pay for each dollar of profit. Reuters
Still, the mood feels jittery. Major tech earnings due later this week might shake up views on whether huge AI investments are delivering. Plus, shutdown-related holes in economic data complicate reading the growth outlook — and the direction of interest-rate wagers.
Stepping outside the tech sector, Walmart broke new ground as the first retailer to reach a $1 trillion market cap, riding a surge that lifted its stock about 26% in the last year. Eric Clark, chief investment officer at Accuvest Global Advisors, credited a “massive digital business transformation,” highlighting Walmart’s push into technology and automation. Reuters
PayPal’s stock plunged roughly 19% after the board ousted CEO Alex Chriss and rolled out a profit forecast that fell short of expectations. Enrique Lores, currently at HP, is set to step in as CEO on March 1, while CFO Jamie Miller will act as interim chief in the meantime. “We saw pressure across our retail merchant portfolio, particularly among lower and middle-income consumers,” Miller said during a call. Reuters
Walt Disney named parks chief Josh D’Amaro as its new CEO, with Bob Iger moving into a senior adviser role and staying on the board through the end of the year. The parks-and-experiences segment, Disney’s largest profit driver, generated nearly $10 billion in operating profit last fiscal year. Paolo Pescatore of PP Foresight commented: “These are big boots to fill.” Reuters
