Market Summary - February 3, 2026
The U.S. technology sector is experiencing significant declines today, with the Nasdaq 100 futures (US100) dropping nearly 2%, currently sitting at around 25,370 points. This downturn is primarily attributed to a widespread sell-off in the tech industry, particularly affecting major players such as Nvidia and Microsoft, both of which have seen their stock prices decrease by over 3%.
Key Drivers of Market Movement
The sell-off is not limited to just Big Tech stocks; it appears to be a systematic trend affecting broader IT and software companies. Institutions may be taking this opportunity to realize profits or exit substantial trades, contributing to the downward pressure on stock prices.
Notable declines include:
- Broadcom: down more than 6%
- Intuit, ServiceNow, Salesforce, and NetApp: all experiencing heavy losses
- Micron: down nearly 5%
- Eli Lilly and Novo Nordisk: both down over 4%
Geopolitical Factors
The market's negative sentiment has been exacerbated by geopolitical tensions, particularly following reports of an Iranian Shahed drone being shot down by an F-35 fighter jet near the USS Abraham Lincoln carrier strike group. This incident raises concerns about potential increases in oil prices, which could dampen market expectations for Federal Reserve rate cuts later in the year.
Sector Performance
While the technology sector is struggling, other sectors are showing resilience. Stocks related to precious metals, oil and gas, as well as banks and the defense sector, are performing notably better amidst the turmoil in tech stocks.
Market Outlook
As the market reacts to these developments, investors are advised to stay informed about both the economic indicators and geopolitical events that could influence market dynamics in the coming days.