2026.2.3 US Market Close | Nasdaq reverses lower on mixed Big Tech earnings cover art

2026.2.3 US Market Close | Nasdaq reverses lower on mixed Big Tech earnings

2026.2.3 US Market Close | Nasdaq reverses lower on mixed Big Tech earnings

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 On February 3rd, the US stock market saw a mixed session driven by diverging Q4 earnings reports from Big Tech companies. Notably, an earnings shock from PayPal dampened investor sentiment across the tech sector, leading to a significant drop in the Nasdaq Composite. Major Indices - Dow Jones Industrial Average: Down 0.34% - Closed lower amid mixed corporate earnings. - S&P 500: Down 0.84% - Weighed down by weakness in tech stocks like PayPal. - Nasdaq Composite: Down 1.43% - Led the decline as the PayPal shock triggered a sell-off in the software and fintech sectors. Key Market Movers - A Tale of Two Techs: Palantir vs. PayPal: A stark contrast was seen within the tech sector. Palantir surged on better-than-expected earnings driven by strong demand for its AI platform. In contrast, PayPal plunged following a disappointing annual forecast and news of a CEO change, highlighting the sharp divergence in stock performance based on earnings. - PayPal Shock Hits the Software Sector: PayPal's over 20% plunge sparked broader concerns across the fintech and software industries. The iShares Expanded Tech-Software Sector ETF (IGV) fell more than 4.6%, reflecting a significant blow to investor confidence in the sector. - Nvidia Faces Customer Risk: Shares of Nvidia fell after a report suggested that key customer OpenAI is exploring alternatives, expressing some dissatisfaction with Nvidia's chip performance. This news raised concerns about Nvidia's dominant market position, introducing a new risk factor for the stock. - Eyes on the Jobs Report: Market attention is now shifting to this week's upcoming ADP Employment Report and the official Department of Labor jobs report. The wage growth data, in particular, is being closely watched as a key indicator that could provide clues about the Fed's future monetary tightening path. Key Stocks - Palantir (PLTR): Surged over 6.8% after reporting blowout earnings and a positive outlook, with Q4 revenue jumping 70% on the back of strong AI demand. - PayPal (PYPL): Plunged more than 20% after its annual profit forecast fell far short of market expectations (around 8% growth) and the company announced a CEO transition, causing a collapse in investor sentiment. - Nvidia (NVDA): Dropped over 3% as reports of a potential departure by key customer OpenAI highlighted concerns over the company's monopolistic position.
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