Overview
U.S. stocks closed lower on Wednesday, February 4, 2026. I summed up the session as “AI-fueled fear in software → a second straight tech selloff, while rotation broadened elsewhere.” Tech remained under pressure, but capital continued to move into a wider set of companies with improving growth outlooks, reinforcing the ongoing rotation trend in 2026.
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NASDAQ Composite
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S&P 500
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Dow Jones
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USD/KRW
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Key Takeaways
- Second straight tech slide: Concerns that rapid AI progress could disrupt legacy software business models kept software stocks under heavy selling pressure.
- Rotation remains visible: In 2026, investors have been pulling capital from mega-cap tech and reallocating toward a broader mix of small-caps and value names. The S&P 500 fell -0.5%, while the equal-weight S&P 500 rose +0.9%, underscoring that shift.
- Geopolitics: Early headlines suggesting U.S.–Iran nuclear talks were struggling weighed on sentiment, but losses moderated as the talks were later seen as continuing normally.
Notable Movers
- AMD: Slumped -17% after disappointing Q1 outlook, pressuring broader sentiment.
- Palantir (PLTR): Fell about -12%, giving back part of the prior day’s post-earnings surge.
- Super Micro Computer (SMCI): Jumped +13.8% after raising full-year revenue outlook on sustained AI server demand.
- Eli Lilly (LLY): Advanced after highlighting strong obesity-drug demand and delivering an upbeat 2026 profit view.
After Hours Highlights
- Google (Alphabet): Posted solid revenue but signaled 2026 spending could be meaningfully higher than investors expected.
- Qualcomm (QCOM): Offered a weaker-than-expected revenue outlook.
- Arm: Issued revenue guidance broadly above consensus, though not enough to clear the most optimistic expectations.
Analyst Commentary (My Summary)
- AI-related disruption risk continues to “re-price” software and adjacent areas, keeping the sector under pressure.
- I view this move less as a fundamental breakdown and more as a technical pullback near record highs combined with rotation. The equal-weight outperformance suggests the market still has internal strength rather than a broad collapse.
Feb 5, 2026 (Thu) — Key Events (KST)
| Time (KST) | Event |
|---|---|
| 21:00 | UK Rate Decision |
| 22:15 | Europe Rate Decision |
| 22:30 | U.S. Challenger Job Cuts (Jan) |
| 22:30 | U.S. Initial Jobless Claims |
| 00:00 | U.S. JOLTS-related data (Dec) |
| 00:30 | U.S. EIA Natural Gas Storage |
| 00:50 | Fed’s Bostic Speech |
Bottom Line
My takeaway: this was not a day of broad market failure. Tech and software took the hit, but the market’s “internal breadth” looked healthier through equal-weight outperformance. The next catalysts are whether AI-driven fear shows up more clearly in guidance, and whether upcoming labor/rate-related events reignite volatility.
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