NEW YORK, Feb 6, 2026, 11:14 EST
- After a week dominated by tech sell-offs, U.S. stocks bounced back early, though Amazon tumbled following a steep rise in AI-related spending plans
- Investors are balancing softer labor data with surging capital expenditures in Big Tech
- Bitcoin and precious metals took a sharp hit as traders pared back risk, then found their footing
After a tough week for tech stocks, Wall Street’s key indexes bounced back on Friday, though Amazon took a hit as investors absorbed another surge in Big Tech’s AI spending. By 9:33 a.m. ET, the Dow had climbed 1.08%, the S&P 500 rose 0.88%, and the Nasdaq added 0.77%. Kristina Hooper, chief market strategist at Man Group, noted that investors are now entering “a period of greater discernment” when it comes to AI bets. 1
The recent rebound did little to ease jitters after a swift change in sentiment around AI-related stocks. Tech giants are set to spend roughly $600 billion on AI infrastructure in 2026, yet software and data analytics companies have fallen amid concerns that advanced models could cut into demand. “Headlines that once would have sent shares soaring during the height of AI enthusiasm are now met with much more caution from investors,” said Carlota Estragues Lopez, equity strategist at St. James’s Place in London. 2
Thursday’s selloff combined renewed AI skepticism with fresh worries about U.S. growth after weak job data. The S&P 500 dropped 1.2%, marking its sixth decline in seven sessions. The Dow tumbled 592.58 points, and the Nasdaq slid 1.6%. The 10-year Treasury yield fell to 4.19% from 4.29% late Wednesday. Weekly jobless claims rose more than expected, layoffs climbed to 108,435 last month, and job openings hit their lowest point in over five years. 3
Amazon fanned concerns on Friday, projecting roughly $200 billion in capital spending this year—covering equipment and data centers. MoffettNathanson analysts said the scale “is materially greater than consensus expected” after Amazon reported a 50% rise in outlays. Meanwhile, major U.S. tech firms are aiming to spend over $630 billion on data centers and AI chips. CEO Andy Jassy defended the cloud unit’s slower growth by telling analysts that “AWS is a much larger business than its competitors.” 4
Thursday’s sell-off dragged down not only megacaps but also consumer and “real economy” stocks. DoorDash slid 6.1%, while Lululemon Athletica and Ralph Lauren each lost more than 4%, the Wall Street Journal reported. “There’s certainly a ‘throwing the baby out with the bathwater’ effect,” said Ross Mayfield, an investment strategist at Baird. 5
Chip stocks led the way higher on Friday, clawing back some of the risk appetite even as Amazon remained under selling pressure. The S&P 500 gained 0.9%, with the Dow jumping 776 points by 10:15 a.m. Eastern. Bitcoin stabilized near $68,000, recovering from a dip to about $60,000 late Thursday, according to AP. Gold surged 2%, hitting $4,986.20 an ounce, while Coinbase and Strategy bounced after steep losses. 6
Investors are busy separating winners from losers in the AI space. Chipmakers linked to data-center expansions have held their ground better than many software firms, which face pressure over concerns that emerging AI tools might undercut their offerings.
Capex stands for capital expenditures — money poured into long-term assets like servers, buildings, and networking equipment. The top cloud companies, known as hyperscalers, operate massive, rapidly expanding data centers. When they ramp up this spending, it can boost suppliers’ revenues even as it tightens free cash flow for the buyers themselves.
The past week revealed just how fast sentiment can shift when spending outpaces revenue gains. Should AI demand slow, or if firms fail to profit from expanded capacity, that spending binge could quickly seem like overexpansion. A softer labor market would heighten recession fears, and persistent inflation would constrain the Federal Reserve’s ability to ease rates.
Traders are keeping an eye on whether Friday’s rebound can hold up or if it’s just a breather in a rocky run. The next batch of Big Tech earnings and upcoming U.S. economic reports will show if the tech sell-off is easing or gaining momentum.
