U.S. equities experienced a challenging day on Thursday, February 5, 2026, as a significant sell-off in technology stocks and discouraging reports from the job market weighed heavily on investor sentiment. The tech-heavy Nasdaq Composite (NDAQ) and the benchmark S&P 500 (SPX) both closed sharply lower, marking their third consecutive day of losses, while the Dow Jones Industrial Average (DJIA) also retreated amidst a broad "risk-off" environment.
The S&P 500 fell 1.2% to close at 6,798.40, recording its sixth decline in the seven trading days since reaching an all-time high. The Nasdaq Composite sank 1.6%, or 363.99 points, to 22,540.59, as semiconductor stocks faced intensified selling pressure. The Dow Jones Industrial Average dropped 1.2%, or 592.58 points, to 48,908.72. This widespread downturn was exacerbated by a plunge in Bitcoin (BTC) prices, which fell below $64,000 and neared $63,000, reaching its lowest level since October 2024.
Major Market Movers and Corporate News
Several prominent companies saw significant stock movements following earnings announcements and corporate news. Tech giant Alphabet (GOOGL) (parent company of Google and YouTube) slipped 0.8% by market close, having been down over 5% in pre-market trading, despite reporting stronger-than-expected sales for the latest quarter. Investors reacted negatively to the company's forecast of sharply higher capital expenditures for artificial intelligence (AI) infrastructure, projecting $175 billion to $185 billion in spending for 2026, roughly double the $91.45 billion spent in 2025. This raised concerns about AI spending discipline and its impact on profitability.
Chipmaker Qualcomm (QCOM) experienced a substantial drop of 8.5% after issuing a disappointing outlook for the current quarter. The company cited a tightening global memory shortage as a key factor impacting the smartphone market, leading to concerns about higher phone and laptop prices. Advanced Micro Devices (AMD) also saw a sharp decline of 17.3% on a weak outlook, contributing to the broader semiconductor sector's woes.
In other earnings news, Uber Technologies (UBER) fell 5.2% after missing its earnings expectations. Conversely, some companies delivered strong performances. Biopharmaceutical company Amgen (AMGN) surged 8.2% on positive earnings results, while Eli Lilly (LLY) jumped 10.3% fueled by robust sales of its popular drugs Zepbound and Mounjaro, providing some support to the healthcare sector and the Dow. Healthcare distributor McKesson (MCK) soared 16.5% after surpassing analyst expectations for profit and revenue and raising its fiscal year profit forecast. Hershey (HSY) advanced 8% following better-than-expected fourth-quarter results and an optimistic 2026 outlook.
However, the day also brought significant disappointments. Connected fitness company Peloton Interactive (PTON) plummeted 28% after reporting weaker-than-estimated results for its holiday quarter and providing soft current-quarter and full-year projections. Estee Lauder (EL) retreated 19%, and Snap (SNAP) sank 12% following their respective earnings reports.
Several major companies announced significant job cuts, highlighting a challenging labor market. Amazon (AMZN) revealed plans to eliminate approximately 16,000 corporate roles, while United Parcel Service (UPS) announced 30,000 new job cuts. Chemical manufacturer Dow (DOW) slashed 4,500 jobs, and Home Depot (HD) and Nike (NKE) each cut hundreds more.
Upcoming Market Events and Economic Indicators
The focus now shifts to several crucial upcoming market events that could influence market direction. Investors are keenly awaiting the release of the January U.S. Non-Farm Payrolls, Unemployment Rate, and Average Hourly Earnings data, scheduled for Friday, February 6. These figures will provide further insight into the health of the U.S. labor market, which showed signs of weakening today.
Today's economic data painted a concerning picture. Initial jobless claims for the week ending January 31 jumped to 231,000, exceeding economists' estimates. Furthermore, U.S. employers announced over 108,000 layoffs in January, the highest level for that month since 2009. Job openings also fell to 6.5 million in December, the fewest since 2020. This weakness in the job market could pressure the Federal Reserve to consider interest rate cuts to support the economy, despite inflation remaining above its 2% target, with the Consumer Price Index rising 2.7% over the year in December.
Central banks were in focus today, with both the Bank of England (BoE) and the European Central Bank (ECB) opting to keep their interest rates steady. Geopolitical developments, particularly U.S.-Iran talks and military actions, are also expected to be primary drivers for markets throughout February.
After-Market Earnings Announcements
After the market close today, investors are closely watching for the fourth-quarter results from e-commerce giant Amazon (AMZN). Amazon is anticipated to report revenue exceeding $200 billion for the first time, with strong growth expected from Amazon Web Services (AWS) amid rising AI demand. Bitcoin investor Strategy (MSTR) is also scheduled to release its quarterly results after the close. Earlier in the day, Carrier Global (CARR) reported its fourth-quarter 2025 results, with net sales down 6% and adjusted earnings per share of $0.34. Looking ahead, Century Aluminum Company (CENX) is set to report its fourth-quarter 2025 earnings on February 19, 2026, after market close.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.