Daily Brief - February 05, 2026 (EOD)

 ## Market Recap In today's trading session, major U.S. indices experienced notable declines, continuing the trend of the previous days. The **S&P 500** fell by 1.23%, the **Nasdaq** dropped sharply by 2.01%, and the **Dow Jones Industrial Average** decreased by 0.89%. The **Russell 2000** also reflected this bearish sentiment, losing 1.45%, indicating a broad-based sell-off across various sectors. Market sentiment was heavily influenced by ongoing concerns related to rising AI spending plans, particularly after significant announcements from **Alphabet** and **Amazon**, which prompted investors to reassess their exposure to tech stocks. Trading volume remained elevated as investors reacted to earnings reports and macroeconomic indicators, particularly job market data which revealed a slowdown in hiring. The breadth of the market was notably negative, with more declining stocks than advancing ones, highlighting a cautious approach from investors amid rising economic uncertainties. ## Top Stories That Moved Markets - **Alphabet's AI Spending Plans**: Alphabet announced plans to double its capital expenditure in 2026 to support its AI initiatives. This led to a 7% drop in its stock as investors expressed concerns over the sustainability of such high spending levels amid economic pressures. - **Amazon's Earnings Preview**: Ahead of its earnings report, Amazon's shares fell by 8% due to fears surrounding its massive $200 billion AI spending plan and expectations of mixed results in its cloud business. - **Peloton's Earnings Miss**: Peloton's stock plunged over 15% after the company reported a revenue miss and a significant decline in subscriptions, raising concerns about its recovery trajectory. - **Estée Lauder's Profit Warning**: Shares of Estée Lauder tumbled more than 20% after the company warned of a $100 million tariff impact on its profitability, overshadowing otherwise strong earnings. - **Silver and Bitcoin Plunge**: Both silver and Bitcoin faced significant sell-offs, with silver dropping 16% and Bitcoin sliding below $70,000, as fears around inflation and tightening monetary policy weighed heavily on risk assets. ## Biggest Winners **$BE** - +17% - Bloom Energy soared after reporting better-than-expected earnings driven by strong demand for its clean energy solutions. **$AVB** - +5% - AvalonBay Communities gained on positive guidance as it pivoted towards favorable supply markets, showing resilience in the face of housing market headwinds. **$HII** - +4% - Huntington Ingalls Industries rose following strong quarterly results, buoyed by steady demand in defense contracting. ## Biggest Losers **$AMZN** - -8% - Amazon's stock fell sharply as concerns over its aggressive AI spending plan overshadowed expectations for its earnings report. **$EL** - -20% - Estée Lauder shares plummeted after the company issued a profit warning due to increased tariffs affecting its bottom line. **$PTON** - -15% - Peloton's stock dropped significantly following a disappointing earnings report that revealed a sharp decline in subscriptions. **$QCOM** - -10% - Qualcomm's stock suffered after the company warned of a memory shortage impacting its future revenue, causing investor alarm. **$AAPL** - -7% - Apple experienced a notable decline as broader market fears regarding tech stocks took hold, coupled with concerns over supply chain issues. ## Sector Scorecard - **Leaders:** - Utilities and Consumer Staples showed resilience, with investors seeking safer havens amid market volatility. - The Healthcare sector also performed well, driven by strong earnings from key players. - **Laggards:** - Technology was the worst-performing sector, primarily due to the heavy declines in stocks like **Alphabet**, **Amazon**, and **Qualcomm**. - Consumer Discretionary stocks were pressured by disappointing earnings reports from major companies like **Peloton** and **Estée Lauder**. ## Tomorrow Setup Looking ahead, investors should monitor several key events and developments: - **Earnings Reports**: Notable earnings from **Microsoft**, **CVS**, and **NVIDIA** will be closely watched for insights into tech and healthcare sectors. - **Job Market Data**: The upcoming payrolls data is expected to provide further clarity on labor market conditions amid rising recession fears. - **Central Bank Announcements**: Investors will be paying attention to any updates from the Federal Reserve regarding monetary policy, especially in light of the recent economic data. - **Market Sentiment**: The tech sector's recovery will be crucial; any further deterioration in sentiment could lead to more selling pressure across broader markets. Overall, caution remains the prevailing sentiment as investors navigate a complex landscape marked by rising interest rates and inflation concerns, particularly in the technology and consumer sectors.