New York, Jan 31, 2026, 13:43 EST — The market has closed.
- Nasdaq closed Friday lower by 0.94% amid changing rate expectations.
- Semiconductors and tech ETFs underperformed, with megacaps closing mixed following earnings reports.
- Heavyweight tech earnings and the U.S. jobs report for Feb. 6 are on deck next week.
U.S. tech stocks head into February with the focus back on interest rates after Donald Trump picked Kevin Warsh to lead the Federal Reserve. A hotter-than-expected Producer Price Index (PPI) report — which measures what businesses charge and pay — dragged the Nasdaq down 0.94% on Friday. The 10-year Treasury yield hovered near 4.251%. Terry Sandven of U.S. Bank Asset Management noted investors are repeatedly zeroing in on “the profitability of the massive capex levels” — with capex referring to capital spending. Reuters
This hits tech hard, given its reliance on long-term growth. If traders expect rates to remain elevated, they tend to value future earnings less, discounting profits that might not materialize for years.
The next catalyst stack is coming fast—and it’s packed. Microsoft’s earnings already dented sentiment, leaving investors focused on Alphabet and Amazon’s upcoming reports, alongside the U.S. jobs data due Feb. 6, following the Fed’s pause on rate cuts this week. Jim Baird from Plante Moran Financial Advisors noted expectations for some firms have grown “very, very lofty.” Meanwhile, TD Wealth strategist Sid Vaidya warned capital expenditure “will not see any letup.” Reuters
On Friday, the Technology Select Sector SPDR Fund (XLK) dropped 2.0%, closing at $143.88. The Invesco QQQ Trust (QQQ) edged down 1.2% to $621.87. The iShares Semiconductor ETF (SOXX) took a bigger hit, falling 4.1%. Among the megacaps, Meta Platforms slid roughly 2.9%, Nvidia dipped 0.7%, but Tesla bucked the trend, rising 3.3%.
Apple stood out as a rare source of stability, projecting March-quarter revenue growth between 13% and 16%. CEO Tim Cook called iPhone demand “staggering,” though the company acknowledged it is “currently constrained” and highlighted challenges from rising memory-chip costs. Reuters
The earnings calendar heats up right after markets open. Advanced Micro Devices reports Tuesday, Alphabet steps in Wednesday, and Amazon rounds out the week on Thursday, according to the schedule. Tech investors will be zeroing in on familiar themes: cloud expansion, advertising demand, and the outlook for new spending commitments from leadership.
The tape has been volatile on that front. AI spending is simple to pledge but tough to deliver visible results on in quarterly reports, and investors have swiftly punished even the slightest sign that returns might be lagging.
The setup remains delicate: a stronger-than-expected inflation reading or a robust jobs report might push yields higher, putting pressure on tech valuations. If guidance falls short—particularly on cloud demand—volatility in individual stocks could quickly spread across the sector.
Warsh’s nomination still requires Senate approval, a step that can influence daily rate-risk pricing. For now, traders will watch closely to see if the market’s narrative for rate cuts remains intact.
The next key data point is the Employment Situation report for January, scheduled for 8:30 a.m. ET on Feb. 6. Alphabet will release its earnings after the close on Feb. 4, followed by Amazon on Feb. 5. Tech investors are closely monitoring both for signs of changes in spending and margins.
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