Market Update: February Insights
On January 28, 2026, traders were busy on the floor of the New York Stock Exchange. Recently, the trading scene has seen some notable movements.
Last Thursday evening, the markets took a hit as S&P 500 futures fell for the second consecutive day. The broad market index dropped 0.3%, while the Nasdaq 100 futures saw a similar decrease. The Dow futures also fell by 139 points, approximately 0.3%.
In political news, President Trump announced he would reveal his choice to replace Federal Reserve Chairman Jerome Powell the following morning. There’s speculation that former Fed chief Kevin Warsh might be the frontrunner in prediction markets, although BlackRock’s Rick Rieder and National Economic Council director Kevin Hassett also appear to be in the running.
After hours, Apple’s stock saw a slight uptick. This followed better-than-expected earnings and revenue for its fiscal first quarter, which was boosted by a significant rise in iPhone sales. In contrast, SanDisk’s shares surged up 17% due to promising guidance, whereas KLA Corporation’s non-GAAP gross margin outlook for the fiscal third quarter declined by over 8%.
During regular trading, the S&P 500 ended 0.1% lower, while the tech-heavy Nasdaq Composite dropped by 0.7%. Interestingly, the Dow Jones Industrial Average managed to gain 0.11%, which is about 56 points.
Microsoft’s recent profits took a dive, contributing to declines in both the S&P 500 and NASDAQ. Stocks fell roughly 10%, marking the worst single-day drop since March 2020. This downturn came after Microsoft reported a slower growth rate for its Azure cloud services and gave a less-than-optimistic outlook for operating margins in the upcoming fiscal quarter. Concerns were also raised regarding artificial intelligence potentially disrupting traditional software business models.
“This week marked the start of major tech earnings, with investors zeroing in on earnings results, guidance, and AI spending as major market influences,” said Angelo Kourkafas, a senior global investment strategist. “A clear theme is starting to show.” He pointed out that companies seem to be increasing their investment in AI-related infrastructure, hinting that the market would favor those who successfully convert these investments into profits. Conversely, businesses lacking a solid monetization strategy may find themselves under more scrutiny.
While the tech sector is anticipated to continue experiencing solid profit growth, it appears to be slowing compared to earlier quarters, as other sectors begin to accelerate. Kourkafas added that these trends underscore what he sees as a significant theme for the year: expanding market leadership.
As of this week, both the S&P 500 and Nasdaq have each gained almost 0.8%, while the Dow has dipped nearly 0.1% week-to-date.
Lastly, investors are closely watching developments in Washington after the Senate couldn’t pass a procedural vote on a government funding measure. This situation raises concerns about a potential government shutdown, which could take effect at 12:01 a.m. ET on Saturday.
