Wall Street ends sharply down as AI worries weigh
Thu February 5, 2026 5:59 AM
For the third day, serious worries about the unprecedented huge investments in AI creating doubts about whether it will translate to profits shot all three indexes way down. It was a similar pattern to the last two days with the markets tumbling drastically until 11 a.m., then recovering in the early afternoon. Only today, instead of continuing the recovery, everything sank again with major 3-digit losses in both tech and industrials. It seems that every major tech company, after announcing even greater planned expenditures for AI, just caused a rush to the exits with the stock prices taking big hits.
Microsoft, Amazon, and Alphabet all suffered their biggest losses since November and associated software developers had even bigger losses. There is also the worry that rapidly improving AI could seriously damage demand for traditional software. As today’s expert put it, “The AI trade which was the accelerant last year is perhaps the extinguisher this year.” In the past three days, the VIX has shot way up from about 16 on Tuesday to almost 22 today. Unemployment applications increased more than expected while job openings dropped to its lowest level in five years. With this major selloff, volume remains extremely brisk at 23.8 billion vs the 19.9 average.
DJ: 49,501.30 +260.31 NAS: 22,904.58
-350.61 S&P: 6,882.72
-35.09 2/4
DJ: 48,908.72 -592.58 NAS: 22,540.59
-363.99 S&P: 6,798.40
-84.32 2/5
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