U.S. equities continued their downward trend on Thursday, Jan. 23, 2026, as investors adopted a cautious approach, resulting in significant sell-offs in both technology stocks and cryptocurrency. The S&P 500 fell by 1.2%, while the Nasdaq Composite dropped 1.6%, putting the tech-heavy index on course for its largest three-day decline since April 2025. The Dow Jones Industrial Average also faced losses, shedding 461 points, or 0.9%.
In the latest round of earnings reports, Alphabet, part of the so-called “Magnificent Seven” companies, spooked investors by forecasting a sharp surge in artificial intelligence (AI) spending, predicting capital expenditures of up to $185 billion for 2026. Following this announcement, Alphabet’s shares tumbled nearly 4%. Conversely, shares of Broadcom rose by 2% after analysts viewed Alphabet’s spending plans as a positive signal for the AI sector, amidst ongoing market uncertainty regarding which companies would emerge as winners or losers in this evolving landscape.
Qualcomm, however, faced substantial pressure, with its shares plummeting by 9% due to a disappointing forecast linked to a global memory shortage. Meanwhile, the cryptocurrency market sustained its downward movement, highlighted by Bitcoin’s drop below the crucial $70,000 support level. In the precious metals sector, silver prices resumed their decline, snapping a two-day rally and dipping as much as 16% after a near 30% plunge the previous Friday.
Adding to the grim market sentiment, concerns about labor market weakness intensified. The outplacement firm Challenger, Gray & Christmas reported a staggering 108,435 layoffs announced by U.S. employers in January-the highest figure for that month since the financial crisis. Additionally, initial jobless claims for the week ending Jan. 31 rose more than anticipated, according to the Labor Department, while the Bureau of Labor Statistics revealed that job openings in December reached their lowest level since September 2020.
Wall Street experienced a tumultuous trading session, especially in the software and semiconductor sectors, which weighed heavily on the S&P 500, marking its second consecutive day of losses. The massive sell-off was driven by fears surrounding AI disruptions across the industry, prompting investors to shift their focus out of technology stocks and into more attractively valued sectors of the market.
Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, commented on the situation, stating, “After three years of strong AI rallies fueled by capex expansion, investors are now rewarding AI spending only when it comes with strong revenue growth. With AI continuing to reshape industries, we think the latest sell-off is unlikely to be a one-off event.” This reflects a growing caution among investors as they reassess the impact of technological advancements on traditional market structures.
As volatility grips the market, investors will be keenly watching for further indicators from both the labor market and corporate spending strategies, as these elements could shape financial landscapes in the near future.
Original Source: https://www.cnbc.com/2026/02/04/stock-market-today-live-updates.html
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Publish Date: 2026-02-05 20:52:00
