S&P 500 Flat as Tech Stocks Fall, Jobs Data Disappoints – Feb 4, 2026

U.S. Equity markets experienced a mixed session on Wednesday, February 4, 2026, as investors continued to rotate out of technology stocks amid growing concerns about the sustainability of the recent gains in artificial intelligence-related companies. The S&P 500 finished relatively unchanged, while the Dow Jones Industrial Average posted gains and the Nasdaq Composite declined.

Tech Sector Under Pressure

The Nasdaq Composite fell 0.6% on Wednesday, extending a recent sell-off in the technology sector. Several prominent tech names experienced significant declines. Advanced Micro Devices shares pulled back 12% following a first-quarter forecast that analysts found underwhelming. Broadcom and Micron Technology also saw their stock prices dip, falling more than 1% and 3% respectively. Software companies continued to face headwinds, with Oracle and CrowdStrike both down roughly 3%, continuing a downward trend from the previous trading day.

The shift away from technology stocks reflects a growing skepticism about valuations and the potential for continued rapid growth in the artificial intelligence space. Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, noted that the “GenAI tech trade is no longer a one way ride,” and that investors are now being more selective. He added, “I believe we are losing this trade in terms of its ability to carry the market but luckily so far investors have found other things to buy and that includes other parts of the S&P 500, small and mid cap and for sure international stocks.”

Dow Jones Industrial Average Outperforms

In contrast to the tech-heavy Nasdaq, the Dow Jones Industrial Average added 259 points, or 0.5%, demonstrating a rotation into more cyclical stocks. This suggests investors are seeking value in sectors less exposed to the recent tech rally and potentially benefiting from a more stable economic outlook. Tuesday saw a similar trend, with investors gravitating towards stocks like Walmart.

Economic Data and Government Shutdown Impact

Wednesday’s trading session also took place against the backdrop of economic data releases and the recent resolution of a partial government shutdown. ADP reported that private payroll growth in January increased by just 22,000 jobs, falling short of the 45,000 jobs economists had predicted. While this data point is often scrutinized ahead of the Bureau of Labor Statistics’ monthly employment report, the BLS report itself was delayed due to the government shutdown that began on Saturday, January 31, 2026.

The shutdown officially ended on Tuesday, February 3, 2026, when President Donald Trump signed a funding bill into law. The brief disruption highlighted the potential for political gridlock to impact economic data releases and market sentiment.

Earnings Season Continues

The earnings season continues to be a key driver of market activity. Investors are closely watching the results of major technology companies for insights into the health of the sector and the broader economy. Alphabet is scheduled to report its earnings after the market close on Wednesday, and Amazon will release its results on Thursday. The performance of these “Magnificent Seven” companies will likely have a significant impact on market direction in the coming days.

Tuesday’s session saw declines for Nvidia and Microsoft, both losing almost 3%, adding to the pressure on the technology sector. The broader tech sector was the worst-performing in the S&P 500, down more than 2% on Tuesday.

Gold and Silver Rebound

Beyond equities, markets also saw a rebound in precious metals. Gold and silver both experienced gains, potentially driven by the uncertainty surrounding the economic outlook and the recent volatility in the stock market. This suggests a flight to safety among some investors.