Market Summary - February 3, 2026

US Market Overview

The US stock market is experiencing a downturn, particularly within the IT sector, as the Nasdaq 100 (US100) index has slid by 0.5%. This decline is largely attributed to significant drops in the share prices of major software companies, including ServiceNow, Intuit, and Accenture, raising concerns about the sector's growth potential amidst increasing competition and the rapid adoption of artificial intelligence (AI).

Key Stock Movements

ServiceNow (NOW.US)

ServiceNow's shares have fallen by 6%, reaching their lowest point since spring 2024, despite the company reporting strong Q4 2025 results. The company achieved earnings per share (EPS) of $0.92, surpassing the consensus estimate of $0.89, and reported revenues of $3.57 billion, exceeding expectations of $3.53 billion. Subscription revenue grew by 19.5% year-over-year, totaling $3.466 billion.

For 2026, ServiceNow projects subscription revenue between $15.53 billion and $15.57 billion, indicating a growth rate of 19.5% to 20%. The company is also focusing on enhancing its operating margin and free cash flow margin, while emphasizing its partnerships with OpenAI and Microsoft to leverage AI capabilities.

Despite these positive results, the market's reaction suggests that investors are more concerned about future growth momentum and demand resilience, with risks including market volatility and competitive pressures in the software and AI sectors.

Accenture (ACN.US)

Accenture's shares have dropped over 7%, reflecting broader concerns about the consulting and IT services industry's health. The decline in Accenture's stock price is indicative of the market's apprehension regarding the sustainability of growth in this sector.

Walmart (WMT.US)

In contrast, Walmart has achieved a significant milestone by surpassing a $1 trillion market capitalization for the first time. Piper Sandler has raised its price target for Walmart shares to $130, highlighting the company's strong market position.

Other Notable Developments

Western Digital (WD.US) shares have gained traction after reporting $3.0 billion in revenue, a 25% year-over-year increase, which exceeded expectations. The company is positioning itself as more than just a legacy drive maker, focusing on AI data center infrastructure and benefiting from strong demand in the cloud sector.

Additionally, Eli Lilly's stock surged by 7% following positive earnings driven by its obesity drug portfolio, showcasing the ongoing impact of pharmaceutical innovations on market dynamics.