> 2ndOcean_

US Stock Market Sector Analysis – Wednesday, February 04, 2026 MIXED

Today, the US stock market displayed mixed results with 13 sectors advancing and 8 declining as investors reacted to major earnings reports. Eli Lilly (LLY) reported a notable EPS of $7.54, exceeding expectations and driving the stock up by 10.3% to $1107.12. In contrast, Super Micro Computer (SMCI) surged 13.8% following strong earnings fueled by AI server demand, while Palantir Technologies (PLTR) fell 11.6% amid valuation concerns. Notably, the Magnificent 7 saw a collective downturn, with Google (GOOG) dropping 2.2% despite beating earnings expectations.

Market Condition Dashboard

US 10-Year Treasury Yield
Wait & Watch
4.29%
stable
Impact
Confidence
Crude Oil (WTI)
Neutral
$65.14
+3.0% 1D
Impact
Confidence
VIX (Fear Index)
Normal Range
18.6
+3.6% 1D
Impact
Confidence
200-Day Moving Average
Bullish Trend Intact
0/3 below
SPY above (+7.1%), QQQ above (+5.3%), DIA above (+9.4%)
Impact
Confidence
Tracked Stocks Breadth (50DMA)
Pause Discretionary Adds
66%
45 of 68 above 50DMA · 20DMA 57% · +7.4pp 5D
Impact
Confidence
Put/Call Ratio (5D)
Caution
0.77
Call-Heavy · rising
Impact
Confidence

Signal analysis only — not investment advice

Sector Performance (Base=100)

Today's Market Events

Key Headlines

CoreWeave shares slide after the company's latest quarter and forward-looking commentary fuel investor concerns about the pace of growth. Management reports beating revenue and reaffirming 2026 ARR targets, but a heavier-than-expected near-term cadence for capital spending and a large buildout to meet surging demand prompt a pullback in sentiment. CEO Michael says the business is seeing strong demand beyond traditional AI labs — naming wins with Anthropic, Meta and Jane Street — and that operating margins should expand from near-flat in Q1 to low double digits by Q4 as infrastructure comes online. Market participants note the stock had rallied sharply year-to-date into the report, amplifying sensitivity to any perceived moderation in short-term guidance.

Tech layoffs and the broader labor picture are front of mind after Cloudflare (NET) announces about a 20% reduction in headcount and the U.S. jobs report shows payrolls beating expectations even as tech employment continues to contract. Companies including Coinbase (COIN) and others have also cut roles recently, and analysts say employers are leaning on AI and automation to boost productivity — a trend that increases pressure on entry-level hiring. Clara Shih of the New Work Foundation emphasizes that many recent graduates lack practical AI skills and urges reskilling programs so workers can compete for roles that now require AI-native capabilities. Investors are watching how companies balance efficiency gains from AI with the reputational and human costs of workforce reductions.

Earnings across consumer and services tech are mixed as Lyft (LYFT) posts a record quarter in bookings and strong free cash flow but faces scrutiny over margins tied to international expansion and supply dynamics. Airbnb (ABNB) shows signs of robust U.S. demand and is reinvesting to diversify, while Coinbase reports persistent crypto weakness that continues to pressure revenue. Executives highlight AI as a force-multiplier for product velocity rather than an immediate lever for mass headcount cuts, but market reaction to incremental guidance and staffing plans keeps share moves volatile. Competition and consumer behavior remain key determinants for near-term profit trajectories across the group.

Macro and strategic developments add to the tape: SoftBank is reportedly trimming plans for a $10 billion loan-backed financing to about $6 billion, reflecting investor caution around private valuations and exposure to generative AI winners. Retail-driven rallies in speculative names such as AST SpaceMobile (ASTS) underscore the retail investor influence on small-cap moves, while stablecoins show rapid growth from a small base — doubling payment volumes year-over-year though remaining tiny relative to global payments. Separately, U.S. policy toward China is in focus as officials navigate export controls on advanced chips and a disputed Pentagon blacklist; market observers say any escalation or clarification around licensing could affect supply chains for NVIDIA (NVDA), AMD and chip-dependent cloud providers.

Earnings Releases

  • Eli Lilly (LLY) EPS: $7.54 vs est $6.74 (beat)
  • ARM Holdings (ARM) EPS: $0.43 vs est $0.41 (beat)

AI and Technology Sector Analysis

The AI/technology investment theme continues to be a focal point today, particularly as the Magnificent 7 stocks grapple with significant fluctuations. While SMCI's robust performance highlights the ongoing demand for AI infrastructure, other players like AMD experienced a drastic 17.3% decline, underscoring the challenges within the chip supply chain. With Nvidia (NVDA) down 3.4% at $174.19 and Microsoft (MSFT) showing marginal gains at $414.19, the outlook for enterprise software remains bleak as it struggles under a 23.0% decline over the past 20 days.

US Stock Sector Overview

Sector 1D 5D 20D vs 50MA
Mag 7 (AI Spenders) -1.7% -3.4% -2.7% BELOW
Chip Supply Chain -3.8% -6.6% -5.5% BELOW
Infrastructure +3.7% +3.5% +6.6% ABOVE
Enterprise Software -1.5% -6.0% -23.0% BELOW
Finance -1.0% +0.3% -3.0% ABOVE
Healthcare +3.7% +1.3% -9.7% BELOW
Retail +0.1% +5.8% +12.2% ABOVE
IT Services -0.8% -7.0% -7.2% BELOW
Airlines -0.3% +5.9% -3.6% ABOVE
Hospitality & Travel +0.6% -4.2% -6.9% BELOW
Food & Restaurant +2.8% +2.9% +9.1% ABOVE
Logistics +3.5% +11.7% +14.4% ABOVE
Industrial +0.2% +3.8% +17.1% ABOVE
Cybersecurity -0.8% -6.5% -15.6% BELOW
Chip Equipment -6.5% -12.1% +4.7% ABOVE
Data Center REITs +0.7% -1.6% +5.5% ABOVE
Utilities +0.6% +1.5% +8.2% ABOVE
Energy +2.2% +5.5% +20.7% ABOVE
Defense & Aerospace -2.6% -1.3% +10.0% ABOVE
Telecom +1.7% +11.0% +12.1% ABOVE
Media & Entertainment +1.5% -3.8% -8.4% BELOW
Biotech +5.1% +5.8% +12.4% ABOVE
Materials +2.6% +8.0% +9.2% ABOVE
Analog & Embedded Chips +0.5% +0.2% +12.9% ABOVE

Sector Strength

Biotech +5.1% 20d: +12.4%
Amgen (AMGN) +8.2% (20d: +7.2%), Gilead (GILD) +2.1% (20d: +17.6%)
Healthcare +3.7% 20d: -9.7%
Eli Lilly (LLY) +10.3% (20d: -0.1%), UnitedHealth (UNH) -2.9% (20d: -19.3%) [<50MA]
Infrastructure +3.7% 20d: +6.6%
Super Micro (SMCI) +13.8% (20d: +12.5%), Hewlett Packard Enterprise (HPE) +6.7% (20d: +3.6%), Dell (DELL) +4.2% (20d: +2.1%) [<50MA]
Logistics +3.5% 20d: +14.4%
UPS +4.4% (20d: +10.7%), FedEx (FDX) +2.6% (20d: +18.0%)
Food & Restaurant +2.8% 20d: +9.1%
Starbucks (SBUX) +4.2% (20d: +11.9%), McDonald's (MCD) +1.3% (20d: +6.4%)

Sector Warnings

Chip Equipment -6.5% 20d: +4.7%
Lam Research (LRCX) -8.8% (20d: +3.3%), Applied Materials (AMAT) -6.6% (20d: +1.8%), ASML -4.1% (20d: +9.0%)
Chip Supply Chain -3.8% 20d: -5.5%
AMD -17.3% (20d: -4.7%) [<50MA], Broadcom (AVGO) -3.8% (20d: -10.3%) [<50MA], TSMC (TSM) -3.0% (20d: +2.2%)
Defense & Aerospace -2.6% 20d: +10.0%
Lockheed Martin (LMT) -4.1% (20d: +21.3%), RTX Corp (RTX) -3.3% (20d: +5.9%), General Dynamics (GD) -0.5% (20d: +2.7%)
Mag 7 (AI Spenders) -1.7% 20d: -2.7%
Tesla (TSLA) -3.8% (20d: -5.9%) [<50MA], NVIDIA (NVDA) -3.4% (20d: -7.9%) [<50MA], Meta (META) -3.3% (20d: +3.1%)
Enterprise Software -1.5% 20d: -23.0% CRITICAL
Palantir (PLTR) -11.6% (20d: -23.2%) [<50MA], ServiceNow (NOW) +1.2% (20d: -26.4%) [<50MA], Salesforce (CRM) +1.6% (20d: -25.1%) [<50MA]

Sector Deep Dive

The biotechnology sector is taking center stage today, up 5.1% as investors respond to strong earnings from key players. Amgen (AMGN) rose 8.2% to $366.20, contributing to the sector's bullish momentum. The sector has shown a solid 20-day trend of +12.4%, indicating a strong recovery trajectory, which is particularly notable given the recent market volatility.

In the infrastructure sector, Super Micro Computer (SMCI) has emerged as a significant player, showcasing a remarkable increase of 13.8% to $33.76 due to its AI-driven earnings report. This sector has gained 4.7% today and holds a solid 20-day trend of +7.0%. This performance reflects a broader trend of increasing investments in infrastructure to support technological advancements.

Conversely, the enterprise software sector continues to face headwinds, dropping 1.5% today, with notable declines from Palantir Technologies (PLTR), which fell 11.6% to $139.54 amid investor concerns over its valuation. The sector's 20-day performance is particularly concerning at -23.0%, signaling potential overvaluation and market saturation issues that may require strategic repositioning for recovery.

Market Breadth Analysis

US stock market breadth analysis shows 16 of 24 sectors trading above their 50-day moving average, while 8 are below. The majority of sectors holding above the 50-day MA indicates healthy medium-term momentum. With 14 sectors positive over 20 days, buying pressure remains broad-based.

Interactive Charts

S&P 500 & NASDAQ 100

50-Day Sector Performance

1-Day vs 5-Day Sector Change

Active Alerts

HIGH Enterprise Software down -23.0% over 20 days
HIGH Cybersecurity down -15.6% over 20 days
HIGH Enterprise Software down -16.8% over 50 days
HIGH Cybersecurity down -18.9% over 50 days
HIGH 7 sectors declining >5% over 20 days: Chip Supply Chain, Enterprise Software, Healthcare, IT Services, Hospitality & Travel, Cybersecurity, Media & Entertainment

Stock-Level Detail

Mag 7 (AI Spenders) Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
AAPL $276.23 +2.6% +7.1% +6.2% +1.8% ABOVE 0
MSFT $413.25 +0.7% -4.5% -14.3% -12.5% BELOW 0
GOOG $333.34 -2.2% -1.6% +3.4% +11.3% ABOVE 2
AMZN $232.99 -2.4% -3.6% -3.5% +5.6% BELOW 2
META $668.99 -3.3% -9.4% +3.1% +12.7% ABOVE 4
NVDA $174.19 -3.4% -9.5% -7.9% -2.6% BELOW 4
TSLA $406.01 -3.8% -2.5% -5.9% +3.8% BELOW 1
Chip Supply Chain Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
QCOM $148.89 +1.2% -2.2% -17.4% -8.4% BELOW 0
ARM $104.90 +0.3% -3.3% -9.3% -20.3% BELOW 0
INTC $48.60 -1.3% -0.1% +14.0% +40.9% ABOVE 1
MRVL $73.73 -2.4% -9.4% -12.8% -4.7% BELOW 5
TSM $325.74 -3.0% -4.1% +2.2% +18.7% ABOVE 2
AVGO $308.05 -3.8% -6.9% -10.3% -9.3% BELOW 3
AMD $200.19 -17.3% -20.6% -4.7% -1.8% BELOW 2
Infrastructure Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
SMCI $33.76 +13.8% +12.1% +12.5% +4.9% ABOVE 0
HPE $23.24 +6.7% +5.6% +3.6% +13.9% ABOVE 0
DELL $122.04 +4.2% +3.0% +2.1% +0.1% BELOW 0
CSCO $81.16 -2.3% +3.5% +8.6% +7.2% ABOVE 1
VRT $182.56 -4.0% -6.4% +6.4% +14.3% ABOVE 1
Enterprise Software Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
ADBE $279.71 +2.9% -4.1% -17.3% -13.7% BELOW 0
CRM $199.44 +1.6% -6.8% -25.1% -12.0% BELOW 0
NOW $111.07 +1.2% -4.8% -26.4% -31.7% BELOW 0
PLTR $139.54 -11.6% -8.1% -23.2% -9.9% BELOW 1
Finance Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
JPM $317.27 +0.8% +3.5% -3.0% +6.9% ABOVE 0
GS $913.30 -2.7% -2.9% -2.9% +18.6% ABOVE 2
Healthcare Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
LLY $1105.28 +10.3% +8.1% -0.1% +4.3% ABOVE 0
UNH $275.92 -2.9% -5.6% -19.3% -13.2% BELOW 5
Retail Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
WMT $128.00 +0.2% +9.0% +13.6% +21.8% ABOVE 0
COST $978.35 +0.0% +2.7% +10.9% +9.0% ABOVE 0
IT Services Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
ACN $241.65 +0.2% -7.5% -11.8% -4.1% BELOW 0
IBM $287.41 -1.8% -6.5% -2.6% -2.8% BELOW 2
Airlines Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
DAL $70.67 +0.6% +6.5% -1.1% +20.7% ABOVE 0
UAL $109.48 -1.2% +5.3% -6.1% +18.7% ABOVE 1
Hospitality & Travel Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
MAR $323.93 +1.9% +1.5% +1.7% +9.5% ABOVE 0
BKNG $184.29 -0.8% -9.9% -15.4% -3.2% BELOW 2
Food & Restaurant Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
SBUX $96.35 +4.2% +3.3% +11.9% +12.9% ABOVE 0
MCD $323.69 +1.3% +2.6% +6.4% +5.3% ABOVE 0
Logistics Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
UPS $115.13 +4.4% +10.1% +10.7% +21.6% ABOVE 0
FDX $362.54 +2.6% +13.3% +18.0% +35.2% ABOVE 0
Industrial Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
HON $234.19 +1.9% +3.6% +18.0% +23.2% ABOVE 0
CAT $691.82 -1.6% +4.0% +16.2% +26.0% ABOVE 1
Cybersecurity Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
PANW $166.72 +0.3% -5.4% -14.0% -8.8% BELOW 0
ZS $185.79 -1.2% -7.4% -19.6% -32.4% BELOW 2
CRWD $415.36 -1.5% -6.6% -13.3% -15.3% BELOW 6
Chip Equipment Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
ASML $1337.37 -4.1% -8.0% +9.0% +38.5% ABOVE 2
AMAT $297.23 -6.6% -12.8% +1.8% +32.7% ABOVE 2
LRCX $209.78 -8.8% -15.5% +3.3% +47.3% ABOVE 2
Data Center REITs Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
DLR $166.79 +1.4% -0.4% +7.7% +7.0% ABOVE 0
EQIX $797.78 +0.0% -2.9% +3.3% +5.7% ABOVE 0
Utilities Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
NEE $89.36 +1.3% +2.0% +14.8% +7.0% ABOVE 0
DUK $121.18 +0.4% +1.1% +5.2% -1.3% ABOVE 0
SO $89.59 +0.2% +1.3% +4.7% +0.4% ABOVE 0
Energy Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
XOM $146.61 +2.7% +5.0% +24.6% +25.2% ABOVE 0
CVX $179.47 +1.8% +5.9% +16.8% +19.7% ABOVE 0
Defense & Aerospace Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
GD $353.37 -0.5% +1.0% +2.7% +4.3% ABOVE 1
RTX $196.09 -3.3% -1.6% +5.9% +15.6% ABOVE 1
LMT $602.76 -4.1% -3.2% +21.3% +31.8% ABOVE 2
Telecom Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
TMUS $200.82 +2.1% +6.6% +2.3% -3.7% ABOVE 0
VZ $47.01 +1.6% +18.1% +19.2% +16.0% ABOVE 0
T $27.22 +1.5% +8.3% +14.9% +6.2% ABOVE 0
Media & Entertainment Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
DIS $107.05 +2.7% -4.1% -5.2% +3.4% BELOW 0
NFLX $80.16 +0.3% -3.6% -11.6% -23.2% BELOW 0
Biotech Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
AMGN $363.68 +8.2% +6.8% +7.2% +7.7% ABOVE 0
GILD $146.23 +2.1% +4.8% +17.6% +16.2% ABOVE 0
Materials Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
APD $286.59 +3.1% +11.9% +9.4% +12.2% ABOVE 0
LIN $473.33 +2.1% +4.0% +9.0% +15.1% ABOVE 0
Analog & Embedded Chips Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
MCHP $77.77 +2.0% -1.4% +5.8% +55.1% ABOVE 0
TXN $222.92 -1.0% +1.8% +20.0% +39.8% ABOVE 1

Key Stock Movers

Today's biggest movers by absolute percentage change: AMD (Chip Supply Chain) fell 17.3% to $200.19. Super Micro (SMCI) (Infrastructure) rose 13.8% to $33.76. Palantir (PLTR) (Enterprise Software) fell 11.6% to $139.54. Eli Lilly (LLY) (Healthcare) rose 10.3% to $1105.28. Lam Research (LRCX) (Chip Equipment) fell 8.8% to $209.78. These individual stock movements were key drivers of their respective sector performance.

Risk and Opportunity Assessment

On the risk side, 5 high-severity alerts are currently active, signaling significant sector declines that warrant portfolio risk management attention. Consider reducing exposure to affected sectors and tightening stop-loss levels.

US Stock Market Outlook

Looking ahead, the market breadth appears relatively weak with 8 sectors currently below their 50-day moving averages. Alerts are active for high-risk sectors such as enterprise software and cybersecurity, both declining significantly over the past 20 days. Investors should consider a cautious approach, focusing on sectors showing resilience, such as biotechnology and infrastructure, while being mindful of potential volatility in technology stocks.

Hypothetical Portfolio

SIMULATION
Value $101,578
P&L +1.58%
Today +0.08%
View full portfolio → Simulation only. Not investment advice.
← 2026-02-03
Calendar
2026-02-05 →