The US stock market today closed lower as investors pulled back from technology stocks and shifted into defensive sectors. Dow Jones today finished lower, though losses were more pronounced across the S&P 500 and Nasdaq Composite as selling pressure intensified in technology stocks.
Technology stocks bore the brunt of the selling pressure on 3 February 2026.
Figure 1: Dow Jones Industrial Average signage representing broader US equity market performance [Investopedia]
Technology stocks bore the brunt of the selling pressure on 3 February 2026. Advanced Micro Devices tumbled more than 7 per cent in after-hours trading despite beating fourth-quarter earnings views. The chipmaker’s first-quarter outlook failed to meet investor expectations, triggering a broader sell-off across semiconductor and artificial intelligence-linked stocks.
Why Did The Dow Jones Today Close Lower?
The Dow Jones today briefly touched a new intraday record before reversing course. The index rose as much as 0.5 per cent to reach 49,653.13 during the session. However, selling pressure in technology stocks weighed on the broader market.
Traders rotated money from growth-oriented technology companies into more defensive positions. Consumer staples and regional banks attracted buying interest. The shift suggests investors are reassessing risk appetite amid concerns about artificial intelligence disruption.
Most of the “Magnificent Seven” technology stocks traded lower. Microsoft declined more than 2 per cent, while Meta Platforms fell by a similar margin. NVIDIA slumped nearly 3 per cent, adding to its year-to-date losses.
What Drove The Tech Sell-Off In The US Stock Market Today?
Advanced Micro Devices shares declined 1.7 per cent to $242.11 during regular trading on 3 February 2026. The stock fell sharply in overnight action following its earnings report. AMD beat fourth-quarter earnings and sales views and guided solidly higher for the first quarter.
Despite the positive results, investors reacted negatively to the first-quarter outlook. AMD has been working on a $266.96 cup-with-handle buy point. The disappointing reaction to earnings weighed on other chip stocks.
Figure 2: Advanced Micro Devices (AMD) headquarters signage, reflecting investor focus on semiconductor earnings and guidance [Tech Monitor]
With the US stock market today, NVIDIA lost a fraction in late trading after sinking 2.8 per cent during the regular session. The decline pushed the share price back under its closely watched 50-day moving average, a level often used by traders to gauge short-term momentum. Broadcom, Oracle and Micron Technology also finished lower as the technology sector posted losses exceeding 2 per cent.
Software stocks continued their 2026 tumble. ServiceNow and Salesforce fell close to 7 per cent each. The iShares Software ETF dropped 5 per cent on the day. Concerns about artificial intelligence eating into future growth and profit margins drove the selling.
Which Sectors Gained While The Dow S&P 500 Nasdaq Retreat Occurred?
In the wake of the Dow S&P 500 Nasdaq retreat, market participants reduced risk and rotated into defensive sectors, lifting consumer staples stocks. PepsiCo advanced almost 5 per cent after reporting strong earnings. The company’s organic sales improved across its business. Walmart gained about 3 per cent and surpassed a $1 trillion market capitalisation threshold.
Regional banks showed strength during the session. Regional bank stocks outperformed, with the SPDR S&P Regional Banking ETF advancing 1.7 per cent during the session. JPMorgan and Citigroup traded in positive territory. Bank stocks benefited from the rotation out of technology.
Figure 3: Gold bullion bars illustrating renewed investor demand for safe-haven assets during market volatility [Investopedia]
Metals and mining stocks jumped as commodity prices rebounded. The SPDR S&P Metals & Mining ETF surged 5 per cent. Gold futures bounced 6.1 per cent while silver gained 8.2 per cent. The precious metals rally helped sentiment after last week’s sharp declines.
Energy stocks also performed well. The Energy Select SPDR ETF popped 3.2 per cent as US crude oil prices rose 1.7 per cent to $63.21 per barrel. Housing-related stocks gained on reports of a “Trump Homes” push, though they pared gains later.
How Did Chipotle Earnings Impact After-Hours Trading?
With the Dow S&P 500 Nasdaq retreat, Chipotle shares tumbled nearly 7 per cent in after-hours trading on 3 February 2026. The company disclosed that customer visits fell again over the latest quarter, continuing a downward trend in foot traffic. Management warned that same-store sales growth could stall in 2026.
The disappointing guidance added to concerns about consumer spending. Chipotle’s warning follows a pattern of cautious outlooks from consumer-facing companies. The stock’s after-hours decline extended losses from the regular trading session.
What Are Investors Watching This Week?
Investors are turning attention to a busy stretch of earnings reports. Alphabet is set to report results on 4 February 2026. Amazon is scheduled to release earnings on 6 February 2026. More than 100 S&P 500 companies are reporting results this week.
Eli Lilly reports early on 4 February 2026. Shares fell solidly as weight-loss rival Novo Nordisk dived on a weak 2026 outlook. The pharmaceutical sector faces scrutiny over growth prospects.
Figure 4: Nasdaq Composite Index one-year price chart showing recent technical weakness and selling pressure in technology stocks [Investors.com]
Dow Jones futures rose 0.1 per cent versus fair value in overnight trading. Futures trading pointed to mixed sentiment, with S&P 500 contracts ticking slightly higher as Nasdaq 100 futures slipped marginally. President Trump signed a funding bill ending a government shutdown that started on Saturday.
Industry Outlook: Market Rotation Dynamics
The US stock market today demonstrated classic rotation behaviour as investors shifted from growth to value. Technology stocks that led the previous uptrend faced selling pressure. Josh Brown, CEO of Ritholtz Wealth Management, noted these periods occur once or twice every year.
Revenue trends look solid, but concerns persist around the software space. The potential disintermediation from artificial intelligence remains a key theme. US Bank Asset Management Group senior investment director Bill Northey stated this story is still yet to be written.
Figure 5: Bitcoin price movement visual highlighting volatility in digital assets amid [investors.com]
Bitcoin dropped to its lowest price point in more than a year, last seen in November 2024. The cryptocurrency dropped below $73,000 before rebounding to $76,394.94. This follows a decline below $80,000 for the first time since April 2025 over the weekend.
Final Thoughts
The Dow S&P 500 Nasdaq retreat on 3 February 2026, highlighting shifting investor sentiment. The rotation from technology into defensive sectors and commodities suggests a reassessment of risk. The Nasdaq broke below its 50-day moving average while the S&P 500 found support at that level.
The Dow Jones today closed modestly lower after touching a new intraday record. Small-cap stocks showed resilience, with the Russell 2000 edging higher. The market appears to be either selling off or rotating out of technology, or a mix of both.
Upcoming earnings from Alphabet and Amazon will provide further insight into the technology sector. The US stock market’s performance today suggests investors remain cautious about valuation and growth prospects in artificial intelligence-linked stocks.
FAQs
Q1. How much was the fall in the Dow Jones today?
Ans. The Dow Jones Industrial Average fell 166.67 points, or 0.34 per cent, to close at 49,240.99 on 3 February 2026.
Q2. Why did AMD stock fall despite beating earnings?
Ans. AMD shares fell more than 7 per cent in after-hours trading as investors reacted negatively to the first-quarter outlook despite beating fourth-quarter views.
Q3. Which sectors performed well during the tech sell-off?
Ans. Consumer staples, regional banks, metals and mining, and energy sectors performed well as investors rotated out of technology stocks.
Q4. What is the S&P 500 closing price?
Ans. The S&P 500 dropped 0.84 per cent to settle at 6,917.81 on 3 February 2026.
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