Market Update: Stocks Continue to Decline
On January 23, 2026, the mood on Wall Street turned sour yet again. The S&P 500 futures declined by 0.5%, while Nasdaq 100 futures fell 0.7%. Similarly, the Dow Jones Industrial Average Futures dipped 130 points, or 0.3%. It was clear that investors were adopting a more cautious approach, stepping back from previously favored trades.
Alphabet, one of the “Magnificent Seven” companies, recently shared its financial results, predicting a significant spike in artificial intelligence spending and earmarking up to $185 billion for capital expenditures in 2026. However, shares dropped around 3% in pre-market trading. On the flip side, Nvidia and Broadcom saw their stocks rise, buoyed by Alphabet’s announcements and optimism regarding AI investments.
In contrast, Qualcomm’s stock took a hit, plummeting 11% in early trading after the company revealed a less-than-rosy outlook, attributed to a global memory shortage.
Meanwhile, the cryptocurrency market faced increased pressure, with Bitcoin briefly dipping below the $70,000 mark, a critical support level. The silver market also suffered, as prices fell sharply, reversing a two-day rally and dropping as much as 16%. Just last Friday, it had experienced a nearly 30% plunge.
As the trading session progressed, the S&P 500 registered its second consecutive day of losses, particularly due to declines in semiconductor and software stocks. The S&P 500 and Nasdaq Composite fell 0.5% and 1.5% respectively. However, some positivity emerged from the Dow, which gained 260 points (0.5%). Notably, the Equal Weight S&P 500 gained 0.9%.
The tech sector saw a significant sell-off, as many investors shifted focus away from software stocks due to concerns about potential disruptions from AI. Nevertheless, towards the end of the day, there were whispers that the sell-off might have been overdone, leading some to suggest it could be time to buy again.
Sonali Basak, chief investment strategist at iCapital, commented on the sentiment during CNBC’s “Closing Bell: Overtime,” stating, “There’s a lot of stuff that’s sold off… The software players, especially the incumbents, will ultimately win. They’ll be worth paying attention to soon, if not right now.”
