Market Summary - February 6, 2026
US Technology Stocks Sell-Off
The Nasdaq 100 (US100) futures have experienced a significant decline, losing over 2% amid a broader sell-off in US technology stocks. This downturn has been exacerbated by disappointing labor market data, which revealed a rise in jobless claims and a dramatic increase in reported layoffs.
Key Labor Market Figures
- Initial Jobless Claims: 231,000 vs. 212,000 expected
- JOLTS (December): 6.54 million vs. 7.25 million expected
- Challenger Layoffs (January): 108,400 vs. 35,500 in December
Market Performance
The US100 is currently trading approximately 300 points above the 200-session exponential moving average (EMA200). Other major indices are also under pressure, with the DJIA and S&P 500 down around 1.2%, and the Russell 2000 down more than 1.3%. The daily Relative Strength Index (RSI) for Nasdaq 100 futures has fallen to around 34, indicating a significant bearish sentiment.
Sector Analysis
Negative sentiment has spread across the technology sector, affecting various sub-sectors. Notably, major tech companies such as Amazon and Alphabet have seen declines of nearly 5%, while Microsoft and Tesla have dropped more than 3% and 4%, respectively. The semiconductor sector has also faced losses, although Broadcom and TSMC have managed to post gains.
Financial Sector Impact
Concerns regarding loan exposure to the struggling software sector have led to profit-taking in financials and banking stocks. Additionally, the stock of obesity drug maker Eli Lilly has reversed recent gains, falling more than 7%.