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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.

Market Condition Dashboard

US 10-Year Treasury Yield
Wait & Watch
4.21%
stable
Impact
Confidence
Crude Oil (WTI)
Neutral
$63.29
-2.8% 1D
Impact
Confidence
VIX (Fear Index)
Elevated Caution
21.8
+16.8% 1D
Impact
Confidence
200-Day Moving Average
Bullish Trend Intact
0/3 below
SPY above (+5.6%), QQQ above (+3.7%), DIA above (+8.0%)
Impact
Confidence
Tracked Stocks Breadth (50DMA)
Healthy Uptrend
57%
39 of 68 above 50DMA · 20DMA 52% · -4.4pp 5D
Impact
Confidence
Put/Call Ratio (5D)
Caution
0.81
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 forward-looking commentary rattles investors despite a beat on quarterly revenue and reaffirmation of annual targets. CEO Michael [last name omitted] tells investors the quarter was “transformational,” saying CoreWeave beat on revenue, reaffirmed its 2026 ARR targets and expanded backlog by roughly $40 billion while struggling to keep pace with demand. Management cautions that operating margins are compressed now because of a massive infrastructure buildout but expects sequential margin expansion as new capacity begins billing, forecasting a path from near‑zero margins in Q1 toward low double digits by Q4. Market participants note the stock entered the report having run roughly 90% year‑to‑date, which magnified sensitivity to any cautious guidance about near‑term growth.

Labor and AI disruptions remain front and center as Cloudflare (NET) announces sizeable job cuts — roughly one‑fifth of its workforce — and the broader tech sector endures a 16‑month streak of payroll declines. Workforce experts say younger workers are particularly exposed: recent data cited by workforce advocates show about 42% of recent graduates underemployed, prompting calls for stronger AI skills training. Executives and policy observers warn that companies across crypto and travel — including Coinbase and others — have already trimmed staff this year as they reshape operations around AI and cost efficiency, intensifying debates over how to retrain and protect entry‑level workers.

Earnings and corporate updates from other tech names produced mixed market reactions. Lyft (LYFT) reported a record quarter for bookings and more than $1 billion of free cash flow, while emphasizing international expansion and loyalty incentives that management says are driving higher margins and sustained user engagement; CEO David Risher added that roughly 86% of developers are actively using AI tools to accelerate product work. SoftBank has pared back a planned asset‑backed finance target to around $6 billion from an earlier $10 billion plan, reflecting investor caution about valuations for unlisted AI‑adjacent companies. Meanwhile, Baidu’s semiconductor unit is pursuing a dual IPO that could value the business near $15 billion, and Nintendo is leaning more on software revenue after raising console pricing.

Geopolitical and infrastructure themes also shaped the day. U.S. officials continue to navigate sensitive export and blacklist decisions involving Chinese chip makers, with internal disputes delaying public listings of some restricted entities and leaving chip licensing practices in focus ahead of upcoming high‑level talks. Energy and payments developments drew attention as operators plan to bring Three Mile Island‑era nuclear capacity back online to help power AI workloads, and stablecoin transaction volumes appear to have roughly doubled year‑over‑year even as they remain a small fraction of global payment flows. Cybersecurity concerns escalated after hackers disrupted a college admissions portal used by thousands of universities, prompting suspensions and warnings about potential data theft.

Earnings Releases

  • Linde (LIN) EPS: $4.20 vs est $4.22 (miss)
  • Digital Realty (DLR) EPS: $0.24 vs est $0.32 (miss)
  • Amazon (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 -0.6% -4.6% -4.2% BELOW
Infrastructure -3.5% +2.6% +5.2% 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 +0.1% +5.9% +10.2% ABOVE
IT Services -1.5% -8.4% -10.7% 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
Analog & Embedded Chips +0.1% +3.4% +12.5% ABOVE

Sector Strength

Chip Equipment +1.6% 20d: +9.0%
Applied Materials (AMAT) +2.1% (20d: +7.9%), Lam Research (LRCX) +1.7% (20d: +6.1%), ASML +0.8% (20d: +13.0%)
Biotech +1.3% 20d: +17.6%
Gilead (GILD) +2.1% (20d: +23.8%), Amgen (AMGN) +0.4% (20d: +11.4%)
Utilities +0.3% 20d: +7.3%
Duke Energy (DUK) +1.0% (20d: +5.2%), Southern Co (SO) +0.9% (20d: +4.4%), NextEra Energy (NEE) -0.8% (20d: +12.2%)

Sector Warnings

Cybersecurity -8.4% 20d: -20.2% CRITICAL
CrowdStrike (CRWD) -9.2% (20d: -18.7%) [<50MA], Zscaler (ZS) -8.8% (20d: -23.1%) [<50MA], Palo Alto Networks (PANW) -7.2% (20d: -18.9%) [<50MA]
Enterprise Software -5.7% 20d: -26.0% CRITICAL
ServiceNow (NOW) -7.6% (20d: -29.8%) [<50MA], Palantir (PLTR) -6.8% (20d: -26.5%) [<50MA], Salesforce (CRM) -4.7% (20d: -27.1%) [<50MA]
Healthcare -5.2% 20d: -14.3% CRITICAL
Eli Lilly (LLY) -7.8% (20d: -5.9%) [<50MA], UnitedHealth (UNH) -2.7% (20d: -22.6%) [<50MA]
Infrastructure -3.5% 20d: +5.2%
Super Micro (SMCI) -8.6% (20d: +3.2%) [<50MA], Dell (DELL) -5.4% (20d: -2.2%) [<50MA], Vertiv (VRT) -2.6% (20d: +10.6%)
Finance -2.4% 20d: -5.4%
Goldman Sachs (GS) -2.5% (20d: -4.8%) [<50MA], JPMorgan (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 13 of 24 sectors trading above their 50-day moving average, while 11 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 -26.0% over 20 days
HIGH Healthcare down -14.3% over 20 days
HIGH IT Services down -10.7% over 20 days
HIGH Cybersecurity down -20.2% over 20 days
HIGH Enterprise Software down -22.1% over 50 days
HIGH Cybersecurity down -27.0% over 50 days
HIGH 8 sectors declining >5% over 20 days: Enterprise Software, Finance, Healthcare, IT Services, Airlines, Hospitality & Travel, Cybersecurity, Media & Entertainment
HIGH 4 sectors declining >10% over 50 days: Enterprise Software, Healthcare, 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 50D vs 50MA Down Days
META $670.21 +0.2% -6.5% +3.7% +9.4% ABOVE 0
AAPL $275.65 -0.2% +6.3% +6.5% -0.0% ABOVE 1
GOOG $331.33 -0.6% -2.1% +1.6% +4.1% ABOVE 3
NVDA $171.88 -1.3% -10.1% -7.1% -5.8% BELOW 5
TSLA $397.21 -2.2% -7.7% -8.9% -4.9% BELOW 2
AMZN $222.69 -4.4% -6.9% -9.6% -1.6% BELOW 3
MSFT $392.77 -5.0% -8.5% -17.7% -17.1% BELOW 1
Chip Supply Chain Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
ARM $110.88 +5.7% +5.2% -1.9% -17.7% BELOW 0
TSM $330.73 +1.5% +0.1% +4.0% +16.5% ABOVE 0
AVGO $310.51 +0.8% -6.3% -6.6% -17.7% BELOW 0
MRVL $74.21 +0.7% -6.0% -11.0% -11.4% BELOW 0
INTC $48.24 -0.7% +3.8% +17.3% +34.8% ABOVE 2
AMD $192.50 -3.8% -18.7% -6.0% -10.5% BELOW 3
QCOM $136.30 -8.5% -10.1% -25.1% -17.0% BELOW 1
Infrastructure Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
CSCO $82.36 +1.5% +5.2% +11.4% +8.6% ABOVE 0
HPE $22.71 -2.3% +5.5% +3.1% +8.3% BELOW 1
VRT $177.75 -2.6% -4.5% +10.6% +5.3% ABOVE 2
DELL $115.39 -5.4% +0.8% -2.2% -8.9% BELOW 1
SMCI $30.85 -8.6% +6.0% +3.2% -7.4% BELOW 1
Enterprise Software Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
ADBE $269.39 -3.7% -8.1% -20.5% -15.5% BELOW 1
CRM $189.97 -4.7% -10.5% -27.1% -16.1% BELOW 1
PLTR $130.01 -6.8% -11.3% -26.5% -19.9% BELOW 2
NOW $102.63 -7.6% -12.3% -29.8% -37.1% BELOW 1
Finance Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
JPM $310.16 -2.2% +1.4% -6.0% +4.6% BELOW 1
GS $890.41 -2.5% -4.8% -4.8% +13.2% BELOW 3
Healthcare Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
UNH $268.55 -2.7% -6.4% -22.6% -15.3% BELOW 6
LLY $1019.14 -7.8% -1.6% -5.9% -4.8% BELOW 1
Retail Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
COST $989.29 +1.1% +5.2% +8.1% +11.8% ABOVE 0
WMT $126.94 -0.8% +6.5% +12.3% +22.2% ABOVE 1
IT Services Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
IBM $288.25 +0.3% -5.5% -4.2% -4.7% BELOW 0
ACN $233.58 -3.3% -11.4% -17.1% -4.1% BELOW 1
Airlines Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
DAL $69.59 -1.5% +5.9% -2.1% +14.7% ABOVE 1
UAL $106.09 -3.1% +3.7% -8.1% +10.9% BELOW 2
Hospitality & Travel Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
MAR $325.82 +0.6% +3.5% +0.5% +10.0% ABOVE 0
BKNG $177.74 -3.6% -11.2% -18.4% -8.7% BELOW 3
Food & Restaurant Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
MCD $323.48 -0.1% +2.7% +4.7% +6.7% ABOVE 1
SBUX $95.45 -0.9% +4.5% +8.9% +14.5% ABOVE 1
Logistics Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
FDX $363.96 +0.4% +12.9% +17.8% +37.0% ABOVE 0
UPS $114.95 -0.2% +9.7% +9.0% +22.9% ABOVE 1
Industrial Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
HON $232.69 -0.6% +2.8% +13.9% +23.3% ABOVE 1
CAT $678.31 -2.0% +3.2% +11.8% +21.5% ABOVE 2
Cybersecurity Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
PANW $154.77 -7.2% -12.5% -18.9% -15.8% BELOW 1
ZS $169.39 -8.8% -15.3% -23.1% -39.6% BELOW 3
CRWD $377.16 -9.2% -14.6% -18.7% -25.6% BELOW 7
Chip Equipment Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
AMAT $303.61 +2.1% -5.7% +7.9% +31.5% ABOVE 0
LRCX $213.31 +1.7% -8.6% +6.1% +42.1% ABOVE 0
ASML $1348.38 +0.8% -5.1% +13.0% +36.7% ABOVE 0
Data Center REITs Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
EQIX $803.18 +0.7% -1.6% +3.3% +5.6% ABOVE 0
DLR $164.65 -1.3% -0.8% +7.7% +4.4% ABOVE 1
Utilities Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
DUK $122.37 +1.0% +1.7% +5.2% +0.2% ABOVE 0
SO $90.37 +0.9% +2.0% +4.4% +1.4% ABOVE 0
NEE $88.61 -0.8% +1.5% +12.2% +5.2% ABOVE 1
Energy Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
XOM $145.11 -1.0% +3.3% +18.9% +25.1% ABOVE 1
CVX $177.49 -1.1% +1.3% +12.5% +18.5% ABOVE 1
Defense & Aerospace Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
LMT $609.18 +1.1% -3.9% +17.5% +36.1% ABOVE 0
GD $352.05 -0.4% +0.3% +0.6% +4.5% ABOVE 2
RTX $195.32 -0.4% -2.5% +4.7% +12.8% ABOVE 2
Telecom Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
T $27.31 +0.3% +4.2% +14.3% +7.8% ABOVE 0
VZ $47.10 +0.2% +5.8% +18.1% +19.2% ABOVE 0
TMUS $200.89 +0.0% +2.4% +2.0% -2.6% ABOVE 0
Media & Entertainment Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
NFLX $80.87 +0.9% -3.1% -10.7% -24.4% BELOW 0
DIS $104.97 -1.9% -6.9% -8.1% +3.7% BELOW 1
Biotech Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
GILD $149.37 +2.1% +5.2% +23.8% +20.0% ABOVE 0
AMGN $365.27 +0.4% +7.6% +11.4% +9.3% ABOVE 0
Materials Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
APD $283.50 -1.1% +4.0% +8.5% +11.3% ABOVE 1
LIN $459.69 -2.9% +0.6% +4.5% +13.2% ABOVE 1
Analog & Embedded Chips Show individual tickers
Ticker Price 1D 5D 20D 50D vs 50MA Down Days
TXN $223.98 +0.5% +3.9% +18.9% +38.9% ABOVE 0
MCHP $77.58 -0.2% +2.8% +6.1% +52.3% ABOVE 1

Key Stock Movers

Today's biggest movers by absolute percentage change: CrowdStrike (CRWD) (Cybersecurity) fell 9.2% to $377.16. Zscaler (ZS) (Cybersecurity) fell 8.8% to $169.39. Super Micro (SMCI) (Infrastructure) fell 8.6% to $30.85. Qualcomm (QCOM) (Chip Supply Chain) fell 8.5% to $136.30. Eli Lilly (LLY) (Healthcare) fell 7.8% to $1019.14. These individual stock movements were key drivers of their respective sector performance.

Risk and Opportunity Assessment

On the risk side, 8 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 $100,038
P&L +0.04%
Today -1.52%
View full portfolio → Simulation only. Not investment advice.
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