US stocks rebound sharply: Dow climbs over 500 points, Nasdaq up 0.8%

• Big Tech companies have lost over $1.35 trillion in combined market value during the week, with firms planning to invest approximately $660 billion in AI infrastructure in 2026, raising concerns about uncertain returns on massive spending commitments.
• Amazon's 15% decline contrasted with the broader market recovery, while other tech stocks rebounded with Nvidia up 3% and Microsoft up nearly 1% after suffering double-digit percentage losses earlier in the week.
• Apple emerged as a relative outperformer with less AI capital spending than peers, reporting 'staggering' demand that helped bolster investor confidence in its core business strategy.

Market Summary: US Stocks Rebound Amid Tech Sector Volatility

Key Market Movements

US equities rebounded sharply on Friday, February 6, 2026, with the Dow Jones climbing 573 points (+1.1%), the S&P 500 gaining 0.9%, and the Nasdaq advancing 0.8%. Despite the rally, the S&P 500 and Nasdaq remained on track for weekly losses of approximately 1% and 3% respectively, while the Dow posted a weekly gain exceeding 1%.

Major Companies and Sector Performance

Big Tech experienced significant volatility: Amazon plunged 10% after announcing a massive $200 billion capital expenditure plan for 2026, raising concerns about elevated AI investment levels. The broader technology sector saw over $1 trillion in market capitalization erased during the week, with $1.35 trillion wiped from Microsoft, Nvidia, Oracle, Meta, Amazon, and Alphabet combined.

Mixed earnings results: Reddit rose 2% on strong earnings and a buyback announcement. Nvidia rebounded 3% and Microsoft gained nearly 1% after double-digit losses earlier in the week. The iShares Expanded Tech-Software Sector ETF fell 9% for the week—its steepest decline since April 2025.

Apple outperformed as a relative winner, benefiting from lower AI capital commitments. CEO Tim Cook cited "staggering" demand for iPhone 16, bolstering investor confidence.

Market Implications

Growing scrutiny surrounds Big Tech's collective $660 billion AI investment plan—exceeding some nations' GDP. Investors are increasingly concerned about uncertain returns and lack of near-term visibility on profitability, despite management's long-term confidence. The shift reflects mounting pressure on tech companies to justify massive infrastructure spending in the AI boom.