Traders at the New York Stock Exchange were on high alert as the S&P 500 retreated on January 27, 2026, driven by a significant rotation away from technology stocks toward equities linked more closely to economic recovery. The broad market index fell 1.3%, while the Dow Jones Industrial Average experienced a drop of 405 points, or 0.8%, despite briefly reaching a record high of 49,653.13 earlier in the day. The tech-heavy Nasdaq Composite saw even sharper declines, shedding 1.9%.
The tech sector faced widespread losses, particularly among high-profile stocks. Nvidia and Microsoft saw declines of 3% and 2%, respectively, further burdening their performance for the year. Software companies continued their downward trend in 2026, with ServiceNow plummeting 7% and Salesforce down 8%. Josh Brown, co-founder and CEO of Ritholtz Wealth Management, commented on CNBC’s “Halftime Report,” stating, “I think we have one or two of these periods every year. The cause is always different, but the effect is always the same. Some of the most popular trades of the previous uptrend just get absolutely nuked.”
In contrast, Palantir Technologies made headlines after the defense tech firm reported strong fourth-quarter results and optimistic guidance, leading to a temporary spike in shares-initially up 6%—before a retreat to 12% higher in premarket trading. Brown emphasized that this fluctuation reflected a diminishing appetite for technology-related investments.
Despite the downturn in many tech stocks, some sectors posted positive performances. Walmart achieved a significant milestone, surpassing a $1 trillion market capitalization following impressive growth in its digital operations and customer acquisition, resulting in a near 3% rise in its shares. The healthcare sector saw a boost as Merck exceeded earnings and revenue expectations on the strength of its cancer immunotherapy, Keytruda, with shares climbing 3.5%—the largest gain in the Dow.
PepsiCo also reported robust earnings, with improvements in organic sales pushing its stock price up about 4%. In the financial sector, JPMorgan and Wells Fargo both recorded gains of 2%, while Citigroup rose approximately 1%. U.S. Bank Asset Management Group’s senior investment director, Bill Northey, provided insight, stating, “Revenue trends look incredibly solid, but at the margin, there continues to be some concerns emanating around the software space, in particular, related to the potential disintermediation that can occur from artificial intelligence.”
Helping to uplift market sentiment was a notable rebound in precious metals, with spot gold and silver prices each surging by 5% on the day. Following significant losses in silver the previous week, this recovery alleviated fears of a broader risk-off mentality among investors.
This week, market participants are closely watching earnings as over 100 S&P 500 companies report results. Notably, Alphabet and Amazon-both members of the “Magnificent Seven”—are due to present their earnings later this week. Investors are keen to assess tech earnings for insights into AI-driven efficiencies and profit trajectories, especially after the unfavorable market response to Microsoft’s recent results.
As analysts and investors navigate a shifting landscape, the market remains poised for further fluctuations as earnings results filter in and economic conditions evolve.
Original Source: https://www.cnbc.com/2026/02/02/stock-market-today-live-updates.html
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Publish Date: 2026-02-04 00:01:00
