Market Summary - February 5, 2026
Key Market Insights
The US market is currently under pressure, primarily due to a disappointing earnings season from major technology companies. Since the beginning of the week, Wall Street indices have experienced a decline of over 6%. This downturn is compounded by uncertainties surrounding the timing and justification for the next interest rate cuts.
Market Performance
At the opening of the US session, the following futures were noted:
- S&P 500 futures: down approximately 1.5%
- Nasdaq 100 futures: down approximately 1.2%
- Russell 2000 futures: down approximately 0.7%
- Dow futures: down 0.4%
Macroeconomic Data
Recent reports indicate a concerning trend in the labor market:
- Challenger's layoffs report showed an increase in layoffs from 35,000 to 108,000 in January.
- Initial jobless claims exceeded market expectations, rising to 231,000 against an anticipated 213,000.
- Continuing claims also increased but were slightly below expectations, reaching 1.844 million compared to the forecast of 1.850 million.
- The JOLTS report indicated a cooling labor market, with job additions at 6.5 million, below the expected 7.2 million.
Technical Analysis
The US100 index has broken below a significant uptrend line established since November 2025. Sellers have taken control, pushing the index below the 38.2% Fibonacci support level and the 100-period EMA. The next resistance level to watch is the 50% Fibonacci level. A recovery above the 38.2% level is crucial for buyers to prevent further declines, with potential drops towards the 61.8% level if this fails.
Company News
- Alphabet (GOOGL.US): Shares fell nearly 4% following the announcement of record capital expenditures of up to $185 billion for 2026.
- ARM Holdings: Initially declined after earnings due to weak sales guidance but later recovered, with shares up around 2%.
- Hershey Company: Reported results above expectations, attributing success to rising prices and new product lines.
- Qualcomm: Shares dropped nearly 10% after disappointing sales guidance, citing a demand-destruction phase in memory prices.
- Broadcom: Gained approximately 4% due to record-high capital expenditure plans from technology giants.
- Carrier Global: Reported weak sales results, leading to a decline of over 6% in stock price.