Market Update: Futures Tumble Amid Mixed Earnings
On February 4, 2026, traders were active on the Nasdaq.
Stock futures took a hit on Thursday night. Following disappointing earnings, Amazon’s shares dropped significantly, contributing to a broader market decline as investors sought to protect their investments.
The Dow Jones Industrial Average Futures saw a loss of 254 points, or about 0.5%. Meanwhile, S&P 500 futures fell by 0.9%, and Nasdaq 100 futures experienced a larger drop of 1.5%.
Amazon.com reported an 11% decrease in stock price after announcing earnings that fell just short of expectations. Additionally, the company indicated that its capital spending could reach $200 billion this year. In contrast, shares of Reddit surged more than 3% after the platform beat earnings estimates, provided strong future guidance, and revealed a share buyback plan.
The sell-off on Thursday followed a rough day on Wall Street, particularly affecting tech stocks. The Nasdaq Composite dropped around 1.6%, largely due to Qualcomm’s profit decline, which resulted in an 8.5% decrease for its stock.
Software stocks continued their downward trend, as the iShares Enhanced Technology Software Sector ETF lost another 5%. This week has seen software sector funds tumble over 11%, marking the steepest decline since 2008—fueled by rising concerns about potential challenges posed by artificial intelligence.
Both the Dow and S&P 500 each fell 1.2% during Thursday’s trading sessions. Projections suggest these indices could end the year in the red alongside the Nasdaq. This week has been particularly tough, with the S&P 500 and Nasdaq dropping about 2% and 4%, respectively; the Nasdaq is experiencing its worst week since the sharp market dip related to tariffs back in early April.
“I felt a bit anxious,” said Michael Farr, Chairman of Farcrest Capital, during an appearance on CNBC’s “Closing Bell: Overtime.” He noted that there’s a palpable nervousness in the air, with many speculating about when a significant market downturn might occur.
The stock market wasn’t alone in its decline; various asset classes also reflected a risk-off sentiment among traders. Bitcoin faced another sell-off, while the previously volatile silver market saw a renewed sell-off trend on Thursday.
Looking ahead, investors are awaiting Under Armour’s revenue report, expected on Friday. Additionally, the widely anticipated nonfarm jobs report, originally set for Friday, will now be released next week following the conclusion of the federal government shutdown, as noted by the Bureau of Labor Statistics.
