Market Analysis Summary - February 6, 2026

Key Highlights

• The E-mini Nasdaq-100 futures are testing the critical 200-day moving average, indicating potential for a significant market breakdown.
• The iShares Expanded Tech-Software Sector ETF (IGV) has experienced its worst weekly loss since 2008, raising concerns about the tech sector's stability.
• Amazon's stock has dropped 11.5% following an announcement to increase capital expenditures significantly, which has shaken investor confidence.

Market Overview

U.S. stock index futures are showing a downward trend, influenced by a continuation of selling pressure from the previous trading session. The decline is exacerbated by Amazon's disappointing performance post-earnings, leading investors to seek protection against a broader market downturn.

Current Futures Data

• E-mini Dow Futures: 48,957.00, down 41.00 (-0.08%)
• E-mini S&P 500 Index: 6,808.50, down 12.25 (-0.18%)
• E-mini Nasdaq-100 Index: 24,549.25, down 101.75 (-0.41%)

Tech Sector Analysis

The technology sector is facing significant challenges, with major players like Alphabet and Qualcomm reporting earnings that failed to stabilize the market. The iShares Expanded Tech-Software Sector ETF (IGV) has seen a decline of over 11% this week, marking a critical point of concern for investors.

Amazon's Impact

Amazon's stock decline is particularly noteworthy, as the company announced plans to increase its capital expenditures by over 50% to approximately $200 billion. This news has led to a sell-off, as investors are wary of the implications of such spending without clear financial returns.

Technical Indicators

E-mini Dow Jones Industrial Average

The E-mini Dow is currently straddling the 50-day moving average, which has historically provided support. A failure to hold this level could lead to significant declines.

E-mini S&P 500 Index

The S&P 500 is trading below its 50-day moving average, indicating potential for further selling pressure unless a reversal occurs.

E-mini Nasdaq-100 Index

The Nasdaq-100 is testing its 200-day moving average, with critical support levels identified. A breakdown could lead to accelerated selling.

Conclusion

The current market environment is characterized by heightened volatility and uncertainty, particularly within the technology sector. Investors are advised to remain cautious and monitor key technical levels as the situation develops.