On February 5, 2026, major U.S. stock indices faced significant declines, with the S&P 500 Index down 0.50%, the Dow Jones Industrials Index down 0.47%, and the Nasdaq 100 Index down 0.40%. The S&P 500 hit a two-week low and the Nasdaq fell to a 2.5-month low, largely driven by a 9% drop in Qualcomm shares following a weaker revenue forecast for Q2. Alphabet also saw a decline of over 3% amidst concerns over projected capital expenditures exceeding analyst expectations.
The U.S. labor market showed signs of weakness, as Challenger’s January job cuts surged by 117.8% year-on-year to 108,435, marking the highest January total since 2009. Additionally, weekly initial unemployment claims rose by 22,000 to reach 231,000, surpassing expectations of 212,000. Meanwhile, Bitcoin experienced a more than 3% decline, reaching a 1.25-year low amidst heightened negative momentum across cryptocurrencies.
Global markets also reflected this downturn, with the Euro Stoxx 50 decreasing by 1.05%, while Japan’s Nikkei Stock 225 was down 0.88%. As for earnings impacts, with 150 S&P 500 companies reporting this week, 81% of those that have reported thus far outperformed expectations, showing Q4 earnings growth projected at 8.4% year-over-year.
