Stocks moved notably lower during trading on Tuesday, more than offsetting the strength seen in the previous session. The major averages all moved to the downside on the day, with the tech-heavy Nasdaq showing a particularly steep drop.
The major averages climbed well off their worst levels in the latter part of the session but remained in negative territory. The Nasdaq slumped 336.92 points or 1.4 percent to 23,255.19, the S&P 500 slid 58.63 points or 0.8 percent to 6,917.81 and the Dow fell 166.67 points or 0.3 percent to 49,240.99.
The weakness on Wall Street was largely due to a rotation out of technology stocks, as reflected by the steep drop by the Nasdaq.
Software stocks turned in some of the tech sector’s worst performances, dragging the Dow Jones U.S. Software Index down by 3.5 percent to its lowest closing level in over nine months.
The weakness in the sector came despite a surge by shares of Palantir Technologies (PLTR), which shot up by 6.9 percent after the AI-powered software provider reported better than expected fourth quarter results and provided upbeat guidance.
Substantial weakness was also visible among semiconductor stocks, with the Philadelphia Semiconductor Index tumbling by 2.1 percent.
Shares of NXP Semiconductors (NXPI) plunged by 4.5 percent even though the Dutch chipmaker reported fourth quarter results that exceeded analyst estimates on the top and bottom lines.
Meanwhile, some stocks benefited from the rotation out of tech, including retail giant Walmart (WMT), which surged by 2.9 percent and surpassed a $1 trillion market capitalization.
“It would be hard to find a better illustration of the market’s recent rotation away from tech than Walmart achieving a $1 trillion valuation for the first time,” said AJ Bell head of markets Dan Coatsworth.
He added, “This bastion of Main Street joins a club which has previously only been populated by technology businesses and Warren Buffett’s Berkshire Hathaway vehicle.
Gold stocks also saw considerable strength amid a significant rebound by the price of the precious metal, with the NYSE Arca Gold Bugs Index spiking by 4.4 percent.
Steel, energy and housing stocks also moved notably higher on the day, helping to limit the downside for the broader markets
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved notably higher during trading on Tuesday. Japan’s Nikkei 225 Index soared by 3.9 percent, while China’s Shanghai Composite Index surged by 1.3 percent.
Meanwhile, the major European markets moved to the downside over the course of the session. While the U.K.’s FTSE 100 Index dipped by 0.3 percent, the German DAX Index edged down by 0.1 percent and the French CAC 40 Index closed just below the unchanged line.
In the bond market, treasuries closed roughly flat after seeing modest weakness for much of the day. The yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 4.274 percent after reaching a high of 4.30 percent.
Looking Ahead
Trading on Wednesday may be impacted by reaction to reports on private sector employment and service sector activity.
Business News
U.S. Stocks Move To The Downside Amid Rotation Out Of Tech
2026-02-03 21:09:21
