Dow Jones and Nasdaq Index: US 30 Hits Record as Chip Stocks Lead Stock Market

• The Dow gained 2.6%, S&P 500 rose 1.7%, and Nasdaq climbed 2%, with the semiconductor index jumping 4.6% as investors bought beaten-down chip stocks
• Amazon fell 5% after forecasting capex to jump 50%+ to $200 billion for AI infrastructure, highlighting market concerns about near-term cash burn versus long-term AI payoffs
• A sector rotation is underway with money flowing from growth to value stocks, as industrials and financials rallied while the Russell 2000 small-cap index posted its best week since late November

Market Summary: Dow Jones Reaches Record High on Chip Stock Rebound

Key Market Movements (February 6, 2026):

Wall Street staged a dramatic Friday rally with the Dow Jones surging over 1,000 points to an all-time high, gaining 2.62% on the day. The S&P 500 rose 1.7% and the Nasdaq climbed 2% as bargain-hunters returned to beaten-down technology stocks.

Semiconductor Sector Leadership:

Chip stocks led the rebound following days of heavy selling:

• Nvidia: +7%
• Broadcom: +7%
• AMD: +7.5%
• Super Micro: +10%
• Semiconductor index: +4.6%

Sector Performance:

Nine of eleven sectors posted gains, with the Russell 2000 small-cap index jumping 3%. Industrials and financials rallied strongly (Caterpillar +6%, Goldman Sachs +4%), signaling rotation from growth to value stocks.

Amazon Warning Signal:

Amazon fell 5% after announcing $200 billion in AI infrastructure capex for the year—a 50%+ increase. This follows massive AI spending by Microsoft, Alphabet, and Meta, raising market concerns about near-term cash burn versus uncertain long-term returns.

Broader Market Context:

Despite Friday's rally, the S&P 500 remains on track for its worst week since December, and the Nasdaq faces its steepest weekly decline since November. While 80% of S&P 500 companies beat earnings expectations (vs. typical 67%), the market is demanding proof of AI investment returns.

Market Implications:

The rally reflects rotation rather than full conviction, with investors reassessing AI valuations and moving toward defensive sectors and value stocks. Bitcoin's 50% decline from October peaks and elevated volatility indicate fragile sentiment. Analysts suggest this bounce may be a temporary respite before further market stress-testing of the AI investment thesis.