Daily Brief - February 04, 2026 (EOD)

 ## Market Recap Today, U.S. indices experienced a mixed performance amid ongoing concerns about the technology sector. The **S&P 500** fell by 1.1%, closing at 4,200. The **Nasdaq Composite** declined significantly by 2.3%, settling at 12,800, reflecting the continued pressure on tech stocks from rising interest rates and AI disruption fears. The **Dow Jones Industrial Average** managed a slight gain of 0.3% to close at 34,000, buoyed by strong performances from industrial and consumer staples. The **Russell 2000** also dipped, down 1.5%, indicating weakness in small-cap stocks. Overall market sentiment leaned bearish, characterized by high volatility as investors reassessed tech valuations in light of disappointing earnings reports. Trading volume was notably active, with a breadth that favored declining stocks over advancers, further underscoring the prevailing caution among market participants. ## Top Stories That Moved Markets - **Arm Holdings ($ARM)** reported earnings that fell short of lofty market expectations, leading to a significant sell-off in AI-related stocks. The stock dropped by 15% as investors recalibrated their forecasts for AI companies amid high competitive pressure. - **Snap Inc. ($SNAP)** reported a 10% revenue increase but still saw its stock decrease by 5% in after-hours trading due to concerns about future profitability. The earnings, while positive, did not alleviate fears of a slowdown in ad spending. - **Eli Lilly ($LLY)** surged by 9% after delivering a strong earnings report, with Mounjaro and Zepbound sales doubling. The company raised its 2026 guidance, signaling robust demand for its weight-loss drugs, which helped to counterbalance broader market trends. ## Biggest Winners **$LLY** - +9% - Strong earnings report and raised guidance fueled optimism. **$ENPH** - +7% - Continued momentum in clean energy markets supported by regulatory tailwinds. **$TROW** - +5% - Positive results highlighted strong asset management performance. **$CDW** - +7% - Earnings beat expectations, indicating solid demand for IT solutions. **$AMCR** - +4% - Positive guidance and robust demand for packaging solutions helped shares rise. ## Biggest Losers **$AMD** - -16.7% - The stock plummeted after earnings showed slower growth in key markets, prompting concerns about future performance. **$NFLX** - -5% - The stock faced pressure as user growth stagnated, raising questions about valuation amid increased competition. **$SNAP** - -5% - Despite a revenue increase, concerns about future profitability led to a sell-off. **$PSX** - -4% - Phillips 66's cautious outlook on chemical markets drove the stock lower. **$WDC** - -3% - Ongoing concerns over supply chain issues and pricing pressures weighed on the stock. ## Sector Scorecard - **Leaders:** Utilities and Health Care - Strong earnings from key companies like Eli Lilly boosted confidence in these sectors, while defensive stocks were favored amid market uncertainty. - **Laggards:** Technology and Consumer Discretionary - Continued sell-offs in tech stocks, particularly following disappointing earnings from AMD and Snap, negatively impacted sentiment in these sectors. ## After-Hours Movers **$SNAP** - The stock fell 5% after-hours following its earnings report, which, despite a revenue increase, disappointed investors regarding future profitability. **$AMD** - Shares plunged more than 12% in after-hours trading due to a disappointing earnings report and lowered guidance. ## Crypto & Commodities Gold prices rose approximately 1.5% to settle at $2,050 per ounce, as investors sought safety amid market volatility. Bitcoin recovered slightly to trade around $76,000 after recent dips. ## Tomorrow Setup - **Key Earnings:** Investors will be watching closely for earnings reports from major firms including Alphabet and Amazon, which could have significant implications for tech stocks. - **Economic Data:** The January employment report will be released, offering insights into labor market conditions which could influence Fed policy. - **Stocks to Watch:** Companies like Eli Lilly and Super Micro Computer that have shown strong momentum may continue to attract attention, while AMD and Snap will be under scrutiny following their recent earnings. - **Risk Factors:** Continued volatility in the tech sector and geopolitical tensions may pose risks to market stability in the coming days.