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US Stock Market Sector Analysis – Thursday, February 05, 2026 BEARISH

Today, the US stock market faced considerable headwinds, with 15 of the 22 sectors declining as major earnings reports and broader economic concerns weighed heavily on investor sentiment. Notable misses from Amazon (AMZN) at $1.95 EPS versus an estimate of $2.01 and Digital Realty Trust (DLR) at $0.24 EPS against an expected $0.32 contributed to the negative momentum, pushing the S&P 500 down significantly. The Magnificent 7 continued to struggle, with Amazon down 4.4% and Microsoft (MSFT) seeing a substantial loss of 5.0%, reflecting a broader tech rout. In contrast, the Chip Equipment sector showed resilience, up 1.6%, with Applied Materials (AMAT) and Lam Research (LRCX) gaining 2.1% and 1.7%, respectively.

Today's Market Events

Key Headlines

  • Stocks Settle Lower as Tech and Crypto are Routed Yahoo
  • Amazon.com Announces Fourth Quarter Results Yahoo
  • ZS Zscaler Acquires SquareX to Advance Zero Trust Browser Security for the AI Era Yahoo
  • ZS Why Zscaler (ZS) Stock Is Nosediving Yahoo
  • Thursday's session: top gainers and losers in the S&P500 index ChartMill
  • SMCI After NVIDIA, Is SMCI the Smartest AI Stock to Buy Right Now? Yahoo
  • Hims & Hers Launches New Pill That Sends Shockwaves Across Weight-Loss Drugmakers' Stocks Yahoo

Earnings Releases

  • LIN EPS: $4.20 vs est $4.22 (miss)
  • DLR EPS: $0.24 vs est $0.32 (miss)
  • AMZN EPS: $1.95 vs est $2.01 (miss)

AI and Technology Sector Analysis

The investment theme surrounding AI and technology remains under pressure today, particularly within the Magnificent 7, which collectively declined by 1.9%. NVIDIA (NVDA) fell 1.3% to $171.88, while Microsoft (MSFT) dropped 5.0%, signaling investor caution in high-growth tech stocks as infrastructure and enterprise software sectors continue to falter. The chip supply chain is seeing a mixed performance, with ARM Holdings (ARM) gaining 5.7% to $110.88, highlighting some pockets of strength amidst the overall weakness in the tech landscape.

US Stock Sector Overview

Sector 1D 5D 20D vs 50MA
Mag 7 (AI Spenders) -1.9% -5.1% -4.5% BELOW
Chip Supply Chain +1.0% -5.1% -4.3% BELOW
Infrastructure -5.6% +0.8% +3.8% BELOW
Enterprise Software -5.7% -10.6% -26.0% BELOW
Finance -2.4% -1.7% -5.4% BELOW
Healthcare -5.2% -4.0% -14.3% BELOW
Retail & Consulting -2.1% -2.4% -2.4% BELOW
Airlines -2.3% +4.8% -5.1% BELOW
Hospitality & Travel -1.5% -3.8% -9.0% BELOW
Food & Restaurant -0.5% +3.6% +6.8% ABOVE
Logistics +0.1% +11.3% +13.4% ABOVE
Industrial -1.3% +3.0% +12.9% ABOVE
Cybersecurity -8.4% -14.1% -20.2% BELOW
Chip Equipment +1.6% -6.5% +9.0% ABOVE
Data Center REITs -0.3% -1.2% +5.5% ABOVE
Utilities +0.3% +1.7% +7.3% ABOVE
Energy -1.1% +2.3% +15.7% ABOVE
Defense & Aerospace +0.1% -2.0% +7.6% ABOVE
Telecom +0.2% +4.1% +11.5% ABOVE
Media & Entertainment -0.5% -5.0% -9.4% BELOW
Biotech +1.3% +6.4% +17.6% ABOVE
Materials -2.0% +2.3% +6.5% ABOVE

Sector Strength

Chip Equipment +1.6% 20d: +9.0%
AMAT +2.1% (20d: +7.9%), LRCX +1.7% (20d: +6.1%), ASML +0.8% (20d: +13.0%)
Biotech +1.3% 20d: +17.6%
GILD +2.1% (20d: +23.8%), AMGN +0.4% (20d: +11.4%)
Chip Supply Chain +1.0% 20d: -4.3%
ARM +5.7% (20d: -1.9%) [<50MA], TSM +1.5% (20d: +4.0%), AVGO +0.8% (20d: -6.6%) [<50MA]
Utilities +0.3% 20d: +7.3%
DUK +1.0% (20d: +5.2%), SO +0.9% (20d: +4.4%), NEE -0.8% (20d: +12.2%)

Sector Warnings

Cybersecurity -8.4% 20d: -20.2% CRITICAL
CRWD -9.2% (20d: -18.7%) [<50MA], ZS -8.8% (20d: -23.1%) [<50MA], PANW -7.2% (20d: -18.9%) [<50MA]
Enterprise Software -5.7% 20d: -26.0% CRITICAL
NOW -7.6% (20d: -29.8%) [<50MA], PLTR -6.8% (20d: -26.5%) [<50MA], CRM -4.7% (20d: -27.1%) [<50MA]
Infrastructure -5.6% 20d: +3.8%
SMCI -8.6% (20d: +3.2%) [<50MA], DELL -5.4% (20d: -2.2%) [<50MA], VRT -2.6% (20d: +10.6%)
Healthcare -5.2% 20d: -14.3% CRITICAL
LLY -7.8% (20d: -5.9%) [<50MA], UNH -2.7% (20d: -22.6%) [<50MA]
Finance -2.4% 20d: -5.4%
GS -2.5% (20d: -4.8%) [<50MA], JPM -2.2% (20d: -6.0%) [<50MA]

Sector Deep Dive

The Enterprise Software sector suffered a steep decline of 5.7% today, continuing a troubling trend with a 26.0% drop over the past 20 days. Notably, ServiceNow (NOW) plummeted 7.6% to $102.63, reflecting investor concerns over growth prospects amid rising competition and market saturation. This sector's struggles are underscored by the high alert count, indicating significant bearish sentiment.

Healthcare stocks are grappling with a challenging environment, as evidenced by a 5.2% drop today and a staggering 14.3% decline over the last 20 days. Eli Lilly (LLY) led the losses, down 7.8% to $1,020.84, amid fears of increasing regulatory pressures and pricing scrutiny. The sector remains on high alert, reflecting a broader trend of weakness that may present long-term investment opportunities at lower valuations.

Cybersecurity is facing a severe setback, with stocks in the sector dropping by 8.4% today and 20.2% over the past month. Zscaler (ZS) fell 8.8% to $169.39, compounded by its recent acquisition announcement, which has raised investor concerns about integration risks and market positioning. CrowdStrike (CRWD) also faced a significant decline of 9.2%, suggesting a broader erosion of confidence in growth prospects within this once high-flying sector.

Market Breadth Analysis

US stock market breadth analysis shows 11 of 22 sectors trading above their 50-day moving average, while 11 are below. An even split above and below the 50-day MA suggests the market lacks directional conviction. Watch for a decisive shift in sector rotation to confirm the next trend.

Interactive Charts

S&P 500 & NASDAQ 100

20-Day Sector Performance

1-Day vs 5-Day Sector Change

Active Alerts

HIGH Enterprise Software down -26.0% over 20 days
HIGH Healthcare down -14.3% over 20 days
HIGH Cybersecurity down -20.2% over 20 days
HIGH 7 sectors declining >5% over 20 days: Enterprise Software, Finance, Healthcare, Airlines, Hospitality & Travel, Cybersecurity, Media & Entertainment
MEDIUM MSFT down -18.3% from 20-day high

Stock-Level Detail

Mag 7 (AI Spenders) Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
META $670.21 +0.2% -6.5% +3.7% ABOVE 0
AAPL $275.65 -0.2% +6.3% +6.5% ABOVE 1
GOOG $331.33 -0.6% -2.1% +1.6% ABOVE 3
NVDA $171.88 -1.3% -10.1% -7.1% BELOW 5
TSLA $397.21 -2.2% -7.7% -8.9% BELOW 2
AMZN $222.69 -4.4% -6.9% -9.6% BELOW 3
MSFT $393.67 -5.0% -8.5% -17.7% BELOW 1
Chip Supply Chain Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
ARM $110.88 +5.7% +5.2% -1.9% BELOW 0
TSM $330.73 +1.5% +0.1% +4.0% ABOVE 0
AVGO $310.51 +0.8% -6.3% -6.6% BELOW 0
MRVL $74.21 +0.7% -6.0% -11.0% BELOW 0
AMD $192.50 -3.8% -18.7% -6.0% BELOW 3
Infrastructure Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
VRT $177.75 -2.6% -4.5% +10.6% ABOVE 2
DELL $115.39 -5.4% +0.8% -2.2% BELOW 1
SMCI $30.85 -8.6% +6.0% +3.2% BELOW 1
Enterprise Software Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
ADBE $269.39 -3.7% -8.1% -20.5% BELOW 1
CRM $189.97 -4.7% -10.5% -27.1% BELOW 1
PLTR $130.01 -6.8% -11.3% -26.5% BELOW 2
NOW $102.63 -7.6% -12.3% -29.8% BELOW 1
Finance Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
JPM $310.16 -2.2% +1.4% -6.0% BELOW 1
GS $890.41 -2.5% -4.8% -4.8% BELOW 3
Healthcare Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
UNH $268.55 -2.7% -6.4% -22.6% BELOW 6
LLY $1020.84 -7.8% -1.6% -5.9% BELOW 1
Retail & Consulting Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
WMT $126.94 -0.8% +6.5% +12.3% ABOVE 1
ACN $233.58 -3.3% -11.4% -17.1% BELOW 1
Airlines Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
DAL $69.78 -1.5% +5.9% -2.1% ABOVE 1
UAL $106.09 -3.1% +3.7% -8.1% BELOW 2
Hospitality & Travel Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
MAR $326.45 +0.6% +3.5% +0.5% ABOVE 0
BKNG $4443.42 -3.6% -11.2% -18.4% BELOW 3
Food & Restaurant Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
MCD $323.48 -0.1% +2.7% +4.7% ABOVE 1
SBUX $96.07 -0.9% +4.5% +8.9% ABOVE 1
Logistics Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
FDX $363.96 +0.4% +12.9% +17.8% ABOVE 0
UPS $116.55 -0.2% +9.7% +9.0% ABOVE 1
Industrial Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
HON $233.85 -0.6% +2.8% +13.9% ABOVE 1
CAT $678.31 -2.0% +3.2% +11.8% ABOVE 2
Cybersecurity Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
PANW $154.77 -7.2% -12.5% -18.9% BELOW 1
ZS $169.39 -8.8% -15.3% -23.1% BELOW 3
CRWD $377.16 -9.2% -14.6% -18.7% BELOW 7
Chip Equipment Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
AMAT $303.99 +2.1% -5.7% +7.9% ABOVE 0
LRCX $213.31 +1.7% -8.6% +6.1% ABOVE 0
ASML $1348.38 +0.8% -5.1% +13.0% ABOVE 0
Data Center REITs Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
EQIX $807.56 +0.7% -1.6% +3.3% ABOVE 0
DLR $164.65 -1.3% -0.8% +7.7% ABOVE 1
Utilities Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
DUK $123.41 +1.0% +1.7% +5.2% ABOVE 0
SO $91.08 +0.9% +2.0% +4.4% ABOVE 0
NEE $89.21 -0.8% +1.5% +12.2% ABOVE 1
Energy Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
XOM $146.08 -1.0% +3.3% +18.9% ABOVE 1
CVX $179.23 -1.1% +1.3% +12.5% ABOVE 1
Defense & Aerospace Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
LMT $609.18 +1.1% -3.9% +17.5% ABOVE 0
GD $352.05 -0.4% +0.3% +0.6% ABOVE 2
RTX $195.97 -0.4% -2.5% +4.7% ABOVE 2
Telecom Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
T $27.31 +0.3% +4.2% +14.3% ABOVE 0
VZ $47.10 +0.2% +5.8% +18.1% ABOVE 0
TMUS $201.86 +0.0% +2.4% +2.0% ABOVE 0
Media & Entertainment Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
NFLX $80.87 +0.9% -3.1% -10.7% BELOW 0
DIS $104.97 -1.9% -6.9% -8.1% BELOW 1
Biotech Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
GILD $149.37 +2.1% +5.2% +23.8% ABOVE 0
AMGN $367.80 +0.4% +7.6% +11.4% ABOVE 0
Materials Show individual tickers
Ticker Price 1D 5D 20D vs 50MA Down Days
APD $283.50 -1.1% +4.0% +8.5% ABOVE 1
LIN $459.69 -2.9% +0.6% +4.5% ABOVE 1

Key Stock Movers

Today's biggest movers by absolute percentage change: CRWD (Cybersecurity) fell 9.2% to $377.16. ZS (Cybersecurity) fell 8.8% to $169.39. SMCI (Infrastructure) fell 8.6% to $30.85. LLY (Healthcare) fell 7.8% to $1020.84. NOW (Enterprise Software) fell 7.6% to $102.63. These individual stock movements were key drivers of their respective sector performance.

Risk and Opportunity Assessment

On the risk side, 4 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 appears poised for continued volatility, with 11 sectors currently trading below their 50-day moving averages. The breadth metrics indicate a concerning trend, as seven sectors have declined more than 5% over the past 20 days. Investors should remain cautious and consider defensive positioning, particularly in sectors like Chip Equipment and Biotech, which have shown relative strength, while monitoring the ongoing risks in the tech-heavy indices.

Hypothetical Portfolio

SIMULATION
Value $100,451
P&L +0.45%
Today -1.47%
View full portfolio → Simulation only. Not investment advice.
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