Nasdaq Index: E-mini Futures Eye 200-Day Moving Average as Tech Stocks Struggle

• E-mini Nasdaq-100 futures fell 0.41% to 24,549.25, testing the 200-day moving average at 24,201.75 with potential further downside to 23,350 if support fails
• Amazon shares dropped after announcing significant AI infrastructure spending, reflecting investor concern that heavy AI investments aren't translating to financial returns
• The software sector is experiencing its worst weekly performance since 2008, with Qualcomm down 8.5% post-earnings and Alphabet falling despite beating earnings expectations

Market Summary: Tech Sell-Off Pressures Nasdaq, Tests Critical Support Levels

Key Market Movements

U.S. stock index futures declined Friday morning (Feb 6, 2026), with tech stocks leading losses. As of 08:58 GMT:

• E-mini Dow: 48,957.00 (-0.08%)
• E-mini S&P 500: 6,808.50 (-0.18%)
• E-mini Nasdaq-100: 24,549.25 (-0.41%)

Companies and Sectors

Alphabet failed to rally despite better-than-expected earnings, while Qualcomm plunged 8.5% post-earnings. Amazon rattled investors with aggressive AI spending plans without demonstrating immediate financial returns. The software sector is experiencing its worst week since 2008, highlighting growing investor skepticism about AI investments.

Market rotation continues from technology into industrial and material stocks, with the Dow remaining the most stable index in 2026.

Technical Analysis and Market Implications

Critical support levels being tested:

• Nasdaq-100: Testing the 200-day moving average at 24,201.75, with intraday lows at 24,239.75. A breakdown could accelerate selling toward 23,544.25-23,350.00.
• S&P 500: Trading below its 50-day moving average at 6,929.75, with key support at 6,583.00 and the 200-day average at 6,579.75.
• Dow: Straddling the 50-day moving average at 48,864, with support holding near 48,028-47,586.

Market Sentiment

Wall Street signals a shift in AI investment sentiment. Investors now demand tangible financial returns rather than accepting speculative spending. "Sell the rally" mentality dominates tech trading, with analysts warning of potential accelerated selling if the Nasdaq's 200-day moving average support fails.