Nasdaq 100 and S&P500: Tech Stocks Slide as AI Spending Hits US Stocks Today

• Alphabet shares fell 4% premarket after announcing increased AI spending that spooked investors, while Qualcomm dropped 11% on disappointing guidance citing global memory shortages
• U.S. employers announced 108,435 layoffs in January, the highest since the financial crisis, adding pressure alongside rising weekly jobless claims
• The S&P 500 broke below its 50-day MA at 6,929.77 and turned negative for the year, with technical support targets at 6,813-6,814.50 and potential further decline to 6,583 if that level breaks

Market Summary: Tech Stocks Tumble on AI Spending Concerns

February 5, 2026 – U.S. equity markets extended losses for a third consecutive session as risk-off sentiment dominated trading, driven by AI spending concerns and disappointing economic data.

Key Market Moves

At 14:44 GMT, major indices showed significant declines:

• E-mini Nasdaq-100: -265.50 (-1.06%) to 24,733.75
• E-mini S&P 500: -62.75 (-0.91%) to 6,843.50
• E-mini Dow: -242.00 (-0.49%) to 49,347.00

Company-Specific Developments

Alphabet led tech weakness with a 4% premarket decline after announcing a major increase in AI spending that spooked investors. Qualcomm plunged 11% premarket on disappointing guidance citing global memory shortages. Other notable decliners included Estee Lauder, Carrier Global, and Arm Holdings. Outperformers included Align Technology, Corpay, and Cardinal Health.

Economic Data

Labor market weakness intensified concerns as U.S. employers announced 108,435 layoffs in January—the highest since the global financial crisis, according to Challenger, Gray & Christmas. Weekly jobless claims also exceeded expectations.

Technical Analysis

The S&P 500 turned bearish after breaking below its 50-day moving average at 6,929.77, establishing new resistance. The index also fell below year-to-date breakeven at 6,892.50. Key support lies at 6,813-6,814.50, with further downside targets at 6,771.50 and potentially 6,583.00.

The Nasdaq-100 showed relative weakness, breaking below critical support levels at 25,411.75 and trending toward its 200-day moving average at 24,174.00.

Analysts suggest oversold conditions could trigger a technical bounce if downside targets are reached intraday.