S&P 500 flirts with record high; chipmakers and small caps jump

S&P 500 flirts with record high; chipmakers and small caps jump

By Noel Randewich and Pranav Kashyap

Mon February 2, 2026 6:05 AM

Ahead of Q4 reports due later this week from stalwarts Alphabet and Amazon, all the indexes shot straight up and way up and stayed there today. Recent concerns about tech overvaluations and disappointing earnings seemed to have vanished today as AI is once again in the front seat and going strong. Small caps continue to outperform tech but with AI dominating the S&P, the index is already up 2% this year with its first gains in three sessions, though the Russell is up about 6% as the rotation into small caps continues, something very much viewed as confidence in the economy.  

S&P earnings are expected to be up 11% in Q4, up from a 9% estimate a month ago. As today’s expert put it, “The fundamentals are good and earnings are strong. We have positive surprises for both revenues and earnings across the board.” Other good news included factory growth for the first time in a year and the VIX dropping a point to 16.5, though even 17.5 is quite low. The government, which shutdown on Saturday, is expected to reopen after tomorrow’s House vote. Volume was a tad above the 19.4 average, coming in today at 20.1 billion. 

DJ: 48,892.47  -179.09       NAS: 23,461.82  -223.30        S&P: 6,939.03  -29.98             1/30

DJ: 49,407.66  +515.19      NAS: 23,592.11  +130.29       S&P: 6,976.44  +37.41           2/2

Mon 2-2-26 4:38 pm S&P 500 flirts with record high; chipmakers and small caps jump | Reuters