Market Update [Feb 4]: Tech Drags, Dow Holds Steady

U.S. Markets: What happened

  • U.S. markets ended the day mixed.
  • The Dow was relatively steady, while the S&P 500 and Nasdaq slipped slightly.
  • Tech stocks were the main drag, but there was no panic selling.
  • Overall, this felt like a pause rather than a shift in market direction.

What pulled markets down

  • Technology stocks, especially AI-linked names, saw selling as valuations came under scrutiny.
  • Investors looked less comfortable paying up for growth at current levels.
  • Bond yields stayed high, making investors less eager to chase growth stocks.
  • This pressure showed up most clearly in tech.

What kept things from getting worse

  • Industrials and other non-tech sectors held up better.
  • That support helped limit losses and kept the broader market stable.
  • Economic data came in without negative surprises, which helped maintain confidence.

What didn’t matter much

  • Fed talk stayed in the background.
  • Investors largely ignored rate-cut speculation during the session.
  • Moves in commodities didn’t have a meaningful impact on equities.

How to read this session

  • Markets are cooling off, not breaking down
  • Investors are becoming more selective
  • This looks like consolidation, not stress