Overview
- Stocks split on Feb. 4 as the S&P 500 fell 0.5% and the Nasdaq lost 1.5% while the Dow rose 0.5%, reflecting pressure from large tech names.
- Advanced Micro Devices sank about 17% on a disappointing revenue outlook, while Nvidia fell 3.4% and the PHLX semiconductor index dropped 4.4%.
- After the bell, Alphabet projected sharply higher AI investment with 2026 capital expenditures of up to $185 billion, lifting related suppliers in late trading.
- Futures edged higher following Alphabet’s update, with S&P 500 and Nasdaq 100 contracts up roughly 0.27% and 0.36% respectively.
- Rotation favored cheaper sectors as seven of eleven S&P 500 groups advanced, led by energy and materials, while weak ADP data showing 22,000 private jobs added reinforced caution toward richly valued software and AI plays.