Tech drags down stocks amid continued AI anxiety
Tech led losses while defensive sectors utilities and consumer staples led gains.
The S&P 500, Nasdaq 100, and Russell 2000 all fell as tech was the worst-performing sector. Defensive havens utilities and consumer staples were the best performers. Every Magnificent 7 stock traded lower and Bitcoin also dipped. Gold and silver weren’t immune to the sell-off as SPDR Gold Shares ETF and iShares Silver Trust fell.
Today’s economic data was mixed, as January home sales slid but jobless claims fell. Investors await for tomorrow’s delayed January CPI, which is expected to show a 2.5% gain from a year ago.
Stocks that moved higher:
Seagate Technology Holdings, Micron, Sandisk, and Western Digital rose after Japanese chipmaker Kioxia issued strong guidance, saying some customers want to lock in supply through 2028 as opposed to traditional 12-month agreements.
Algorhythm Holdings, a company that previously produced consumer karaoke products, soared after publishing a white paper that says its SemiCab AI platform lets customers scale freight volumes by 300% to 400%.
Fastly skyrocketed after its Q4 results and 2026 guidance crushed estimates.
Crocs surged after strong Q4 results and a much better-than-expected 2026 earnings outlook.
Equinix jumped after issuing a better-than-expected Q1 and full-year sales outlook.
Viking Therapeutics climbed on plans to advance the oral version of its GLP-1 treatment.
McDonald’s rose after reporting Q4 results after the bell yesterday that beat earnings and revenue expectations, as the Grinch Meal helped set new sales records.
Boeing ticked higher as the company touted improvements in its supply chain and progress in its “war on defects.”
Stocks that moved lower:
AppLovin cratered as investors worried about the competitive threat of Meta’s new AI tools and a slower ramp of its new ad portal.
Trucking stocks Old Dominion Freight, JB Hunt, CH Robinson, and Expediators International got pummeled on fears that AI will disrupt the freight forwarding and brokerage industry.
AST SpaceMobile slid after the company unveiled a $1 billion convertible note offering, debt repurchase, and stock sale.
Cisco sank despite delivering a beat-and-raise Q2 result as the surging costs of memory chips weighed on its margins.
Shopify sank as its Q4 report beat on revenue estimates but missed on earnings.
Despite OpenAI investment gains driving its fourth consecutive profitable quarter, SoftBank ticked lower.
