Market Recap: Major Indices Drop 1.2%-1.6% as Silver Plummets 16.6% and AI Fears Spook Tech Stocks; Amazon Falls 4.4%

The U.S. market closed in bearish territory on February 5, 2026, with all major indices plunging amid a perfect storm of AI-driven disruption fears, geopolitical uncertainty, and commodity volatility. The Dow Jones Industrial Average fell 1.197% to $48,908.72, the S&P 500 dropped 1.225% to $6,798.40, and the Nasdaq Composite slumped 1.589% to $22,540.59. Commodities mirrored the selloff, with WTI crude oil (-3.1%), gold (-3.08%), and silver (-16.64%)—the latter’s collapse sending shockwaves through the jewelry sector. Sectors like Materials (-3.69%) and Energy (-1.5%) were hit hardest, while Consumer Staples (+0.22%) offered rare respite. The market’s anxiety over AI’s disruptive potential and Amazon’s $200 billion capex plan dominated sentiment.

Hot Stocks

Tech Giants:

• Apple (AAPL): -0.21%
• Amazon (AMZN): -4.42%
• Microsoft (MSFT): -4.95%
• Tesla (TSLA): -2.17%
• Nvidia (NVDA): -1.33%

Retail & Healthcare:

• McKesson (MCK): +16.52%
• Cardinal Health (CAH): +9.83%
• The Hershey (HSY): +9.03%
• Cencora (COR): +6.72%

AI & Semiconductor:

• MACOM Technology (MTSI): +5.94%
• Lumentum (LITE): +8.35%
• FormFactor (FORM): +17.19%

Small-Cap Movers:

• Kelly Services B (KELYB): +251.16%
• TruGolf (TRUG): +29.22%
• Linkhome (LHAI): +19.64%

Analysts Opinions

Analysts highlighted a bifurcated market: while AI advancements by Anthropic and OpenAI spooked software stocks, earnings beats from companies like Bloom Energy (35.9% revenue growth) and Paylocity (10.4% revenue rise) offered glimmers of hope. The selloff in tech was attributed to fears of AI commoditizing traditional software, with Palantir (-6.5%), Datadog (-7.1%), and Monday.com (-8.3%) leading declines. Energy analysts noted that the Materials sector’s -3.69% drop reflected oversupply concerns, while the silver crash forced Pandora to pivot to platinum-plated jewelry. The Fed’s policy uncertainty and Amazon’s capital-intensive AI bets further clouded near-term outlooks.

Macro & Corporate Narrative

Amazon’s $200B Capex Plan Sparks Profitability Fears

Amazon’s Q4 earnings revealed a $200 billion capital expenditure plan for 2026, focusing on AI, chips, and infrastructure. While revenue beat estimates, shares fell 4.42% as investors questioned near-term profitability. The company’s Q1 operating income forecast ($16.5–21.5B) fell short of $22.04B estimates, amplifying concerns about balancing long-term investments with short-term returns.

Silver’s 16.6% Plunge Forces Pandora to Shift to Platinum

Silver prices plummeted 16.6% to $70.350, the largest single-day drop in the dataset. Jewelry giant Pandora announced it would replace silver with platinum-plated products to mitigate costs, as silver accounts for nearly one-third of its COGS. The move highlights the sector’s vulnerability to commodity volatility.

AI Advancements Spook Software Stocks

Anthropic’s Claude Opus 4.6 and OpenAI’s GPT-5.3 Codex models triggered a sell-off in enterprise software. Firms like Palantir (-6.5%), Datadog (-7.1%), and Workday (-5.9%) fell sharply as investors feared AI’s potential to replace traditional tools. The Nasdaq Composite’s 1.59% drop underscored the sector’s fragility.

ECB Holds Rates, Cautious on Inflation

The European Central Bank left rates unchanged at 3.75%, with President Christine Lagarde stating inflation is “in a good place” despite a 1.7% January reading. The decision was seen as dovish, with markets pricing in a potential rate cut in Q2 2026 if inflation continues to decelerate.

Bitcoin Slumps to 18-Month Low

Bitcoin fell 10% to $63,100, its lowest since October 2024, as leveraged selling and macroeconomic uncertainty weighed. Bitcoin Giant Strategy’s $12.4B Q4 loss and MicroStrategy’s stock plunge (-70% from peak) highlighted crypto’s fragility. The asset’s 48% decline from its October 2025 peak intensified concerns about liquidity risks.

Amazon’s Regulatory Headwakes

German regulators ordered Amazon to stop imposing price controls on its marketplace, leading to a 4.5% share drop. The Federal Cartel Office criticized Amazon’s non-transparent pricing rules for third-party sellers, compounding investor worries amid rising capital expenditures for AI and data centers.