Market Summary - February 05, 2026

Market Overview

U.S. stocks are experiencing a turbulent start to the day, following a mixed performance on Wednesday. The Dow Jones Industrial Average saw a rally, reaching new all-time highs for various sectors including Dow Transports, Industrials, Materials, Energy, and Consumer Staples. However, the technology sector, particularly software stocks, has been under pressure due to concerns over competition in artificial intelligence (AI). This has led to broader market weakness, with the S&P 500 Index dropping below 6,800 after nearing 7,000 just days prior.

Alphabet (GOOGL) reported strong quarterly results, but the market reacted negatively to its significant increase in capital expenditure guidance, which was well above analysts' expectations. The cryptocurrency market is also facing challenges, with Bitcoin falling below $68,000 for the first time since November 2024, marking a 7% decline. This drop is attributed to long liquidations, contagion from the tech stock sell-off, and continued outflows from ETFs. Precious metals are also down, with gold prices dropping over $90 to $4,855 and silver prices down 13% to $73 an ounce.

Economic data released today shows a decline in job openings, an increase in layoffs, and a rise in jobless claims, contributing to market fears as the VIX index rose by 22% to 22.80, indicating increased volatility.

Central Bank News

The Bank of England (BOE) decided to keep interest rates on hold after a narrow 5-4 vote, indicating a potential future cut if inflation falls sharply. The BOE has revised its economic growth forecast downwards and noted a rise in unemployment. Meanwhile, the European Central Bank (ECB) maintained its key interest rates, reaffirming its inflation target of 2% in the medium term despite a challenging global economic environment.

Economic Data Highlights

• U.S. JOLTS job openings fell to 6.542 million in December, below the consensus of 7.200 million.
• Challenger data reported 108,435 layoffs, a 205% increase from December.
• Jobless claims rose to 231,000, exceeding the consensus estimate of 212,000.

Sector Movers

Cryptocurrency

The cryptocurrency sector continues to struggle, with significant declines in shares of blockchain-related companies as Bitcoin falls below $70,000. Analysts suggest that the nomination of Kevin Warsh as the next Fed Chair could lead to a smaller Fed balance sheet, negatively impacting speculative assets.

Chemicals

Syngenta Group is planning a Hong Kong listing that could raise up to $10 billion. Jefferies upgraded CE from Hold to Buy, citing a shift in demand dynamics in the chemical industry. Conversely, FMC shares plummeted after announcing a potential sale and disappointing earnings forecasts.

Media

FOXA was downgraded by Wells Fargo post-earnings, while FUBO received an upgrade due to its new business model. SIRI reported unexpected subscriber growth, and SNAP's Q4 results exceeded expectations.

Insurance

AFL missed EPS estimates due to corporate losses, while ALL and MET reported better-than-expected earnings driven by favorable reserve developments and investment income.

Stock Performers

Gainers

• ALGN +11%: Strong Q4 results.
• CAH +9%: Raised profit expectations for 2026.
• CPAY +9%: Exceeded revenue and EPS expectations.
• HIMS +7%: New pricing strategy for obesity drug.
• MCK +13%: Increased annual EPS outlook.

Losers

• CARR -6%: Q4 EPS miss and lowered profit guidance.
• FMC -20%: Plans to explore strategic options after disappointing earnings.
• GOOS -14%: Q3 profit miss due to increased marketing spend.
• PTON -25%: Lowered revenue forecast and CFO resignation.
• QCOM -9%: Q1 beat but disappointing Q2 outlook.