US Stocks Swing Lower on Tech Rotation
2026-02-03 15:24
By
Andre Joaquim
1 min. read
US stock indices swung lower on sharp losses for the heavyweight tech sector, reflecting fresh scrutiny on valuations for chip producers and AI companies.
The S&P 500 fell 0.5% after testing record highs earlier in the session and the Nasdaq 100 dropped 1%, while the more defensive Dow remained above the flatline.
Chip producers and AI companies recorded aggressive losses with Micron, Broadcom, Oracle, and Intuit dropping between 4% and 8%.
Also, Nvidia fell 5% so far this week after the chip giant downplayed its commitment to invest on OpenAI, while AMD was 5% sown this session ahead of its earnings after the bell.
In the meantime, PayPal plunged nearly 20% after posting its fourth quarter results and announcing its new CEO.
Similarly, Disney was lower after also changing its chief executive.
On the other hand, Palantir jumped 6% after beating expectations of this year's guidance, while results from Pfizer and Merck boosted their shares for a positive session for pharmaceuticals.