{"id":3456,"date":"2026-02-05T15:21:21","date_gmt":"2026-02-05T15:21:21","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=3456"},"modified":"2026-02-05T15:21:21","modified_gmt":"2026-02-05T15:21:21","slug":"us-stocks-open-lower-as-nasdaq-falls-0-6-and-tech-selloff-deepens","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=3456","title":{"rendered":"US stocks open lower as Nasdaq falls 0.6% and tech selloff deepens"},"content":{"rendered":"
<\/div>\n

US stocks head into Thursday\u2019s session on the back foot after another bruising tech selloff knocked Wall Street\u2019s most popular trades off their pedestal. <\/p>\n

The S&P 500 dropped around 0.46%, while the Nasdaq Composite slid about 0.6%, extending a sharp two\u2011day retreat in high\u2011growth names. <\/p>\n

The Dow Jones Industrial Average shed roughly 240 points, or 0.4%, as investors rushed to cut risk and question how long the AI\u2011driven boom can defy gravity.<\/p>\n

US stocks open: Tech unwind deepens as crowded trades crack<\/h2>\n

What is playing out now is a classic shakeout in \u201ccrowded trades\u201d as positions where too many investors pile into the same winning theme at the same time. <\/p>\n

Over the past year, that crowding has been most visible in large\u2011cap technology and AI beneficiaries, from chipmakers to software platforms.<\/p>\n

As earnings guidance turns more cautious and capital\u2011spending plans explode, traders are suddenly less willing to pay any price for future growth, and the result is an air pocket under the market\u2019s former leaders.<\/p>\n

The latest downdraft has been led by semiconductor and software names, where optimism about AI demand had pushed valuations to extremes. <\/p>\n

A disappointing market reaction to recent chip earnings<\/a>, even when headline numbers beat forecasts, underlined how unforgiving the tape has become. <\/p>\n

When investors start to doubt how quickly AI spending will turn into hard profits, they move first by cutting exposure to the sectors that had run up the most.<\/p>\n

That shift is feeding a broader \u201crisk\u2011off\u201d mood, market shorthand for investors dialling back exposure to riskier assets like equities and rotating into safer or more defensive plays. <\/p>\n

In practice, this has meant steady outflows from growth and momentum stocks, and more interest in areas such as utilities, consumer staples and parts of healthcare. <\/p>\n

These sectors may not be exciting, but their earnings are typically steadier and less sensitive to shifts in the interest\u2011rate or hype cycle.<\/p>\n

The divergence inside the S&P 500 captures this rotation well. <\/p>\n

Risk shifts away from growth<\/h2>\n

Even as the index fell, many individual names outside big tech held up relatively better, suggesting that this is not yet a blanket call on the US economy but a targeted reassessment of price and risk. <\/p>\n

Put differently, investors are questioning\u00a0where\u00a0they want to be in the market, more than\u00a0whether\u00a0they want to be in it at all.<\/p>\n

Higher bond yields and lingering uncertainty over the Federal Reserve\u2019s path are adding to the pressure on long\u2011duration growth stories.<\/p>\n

Elevated yields make it harder to justify lofty valuations, because future profits are \u201cdiscounted\u201d more heavily when benchmark interest rates are high. <\/p>\n

That hits technology and other growth stocks hardest, as so much of their value is tied to earnings years down the line rather than cash flows today.<\/p>\n

The key question is whether this marks the start of a deeper de\u2011rating of tech and AI favourites, or a painful but ultimately healthy reset after a powerful run. <\/p>\n

For now, the message from the tape is clear: the market is no longer willing to fund every hot narrative without demanding proof. <\/p>\n

Traders heading into the new session will be watching closely to see if dip\u2011buyers have the conviction to step back into those crowded trades, or if the risk\u2011off stance still has further to run.<\/p>\n

The post US stocks open lower as Nasdaq falls 0.6% and tech selloff deepens<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

US stocks head into Thursday\u2019s session on the back foot after another bruising tech selloff knocked Wall Street\u2019s most popular trades off their pedestal. The S&P 500 dropped around 0.46%, while the Nasdaq Composite slid about 0.6%, extending a sharp two\u2011day retreat in high\u2011growth names. The Dow Jones Industrial Average shed roughly 240 points, or…<\/p>\n","protected":false},"author":1,"featured_media":3457,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-3456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/3456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3456"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/3456\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/3457"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}