Thursday, February 5, 2026-U.S. equity markets slid sharply today as technology shares came under heavy pressure, dragging the Nasdaq Composite down about 1.5% and marking one of the more pronounced tech sector pullbacks in recent sessions. Investors reacted to broad risk‑off sentiment that saw weakness not only in chip stocks but across major AI‑linked names, while defensive and non‑tech sectors showed relative strength. The S&P 500 also dipped modestly, continuing a trend of mixed performance amid earnings season and weaker economic data on the job market.
A major headline driver was Advanced Micro Devices (AMD), whose shares plunged more than 17% following its latest earnings report despite beating revenue and earnings expectations. The steep decline — the worst single‑day drop in years — was mainly attributed to disappointing forward guidance for the current quarter that fell short of lofty investor expectations, particularly around AI growth and revenue momentum. Analysts and traders framed the reaction as a reflection of how sensitive high‑growth tech stocks remain to near‑term forecasts rather than headline beats.
The broader market backdrop also featured rotation out of tech and AI leadership, with investors taking profits and reallocating toward more stable sectors as macro‑economic concerns persist. Weak labor data and continued uncertainty around inflation and interest‑rate expectations added to the caution. Meanwhile, some blue‑chip and cyclical stocks outperformed modestly, underscoring the market’s sector divergence as traders reassess risk and growth narratives.
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