Dow Jones and S&P500: US Stocks Mixed Today as Tech Weakness Pressures Indices

• Technology sector dropped 2.37%, offsetting gains in Materials (up 2.96%) and Energy (up 1.78%), with seven of eleven sectors posting positive returns
• Merck rose over 3% and Pepsi gained 4% on strong earnings, while Palantir jumped 6% on upbeat guidance, helping lift the Dow
• March E-mini S&P 500 futures struggled below the record high of 7043.00, with technical support at the 50-day moving average of 6920.78 becoming critical as markets face uncertainty over AI profitability and upcoming tech earnings

Market Summary: U.S. Stocks Mixed as Tech Weakness Offsets Broader Gains

Key Performance (as of February 3, 2026, 16:00 GMT)

U.S. equity markets showed divergent performance with the Dow Jones Industrial Average up 0.12%, while the S&P 500 declined 0.41% and the Nasdaq Composite fell 0.87%. Technology sector weakness pressured indices despite strength in other areas.

Sector Performance

Seven of eleven sectors posted gains, led by Materials (+2.96%) and Energy (+1.78%), supported by rebounds in gold, silver, and crude oil. However, Technology plunged 2.37%, with Nvidia and Microsoft both down over 2%, extending year-to-date losses.

Company Highlights

• Merck: Surged 3%+ on strong earnings, contributing 3.5% to Dow's gains
• PepsiCo: Rose 4% following robust earnings report
• Palantir: Jumped 6% early on upbeat guidance
• Upcoming earnings from Alphabet and Amazon creating investor anxiety following last week's Microsoft selloff driven by disappointing AI guidance

Market Implications

Despite hovering near record highs, the rally appears tentative. While supportive factors include potential Fed rate cuts (two expected), strong economic fundamentals, and solid corporate profits, concerns over AI investment returns are limiting upside momentum. The March E-mini S&P 500 futures failed to breach last week's record high of 7043.00, with key support at the 50-day moving average of 6920.78.

Investors remain cautious ahead of key tech earnings, focusing particularly on AI performance metrics rather than just historical results. A sustained breakout above technical resistance or potential steep decline remains possible without decisive momentum.