U.S. equities extended their selloff Thursday, Feb. 5, 2026, as technology shares led broad declines across major benchmarks amid renewed risk-off sentiment.
Nasdaq Leads Market Declines as Risk-off Sentiment ReturnsBy mid-morning, the Nasdaq Composite stood at 22,500.96, down 403.62 points. The S&P 500 fell 94.64 points to 6,788.08, while the Dow Jones Industrial Average slid 598.18 points to 48,903.12. The NYSE Composite also traded lower, reflecting broad-based weakness across sectors.
Technology shares bore the brunt of the selling as concerns mounted over capital expenditures tied to artificial intelligence initiatives and stretched valuations. Software and semiconductor stocks continued a multi-day retreat, erasing hundreds of billions of dollars in market value since late January. Chipmakers were particularly pressured following earnings reactions, despite some companies beating estimates.
Economic data added to the cautious tone. A rise in unemployment claims and softer private hiring figures revived concerns about slowing growth, reinforcing a move away from risk assets. Futures markets reflected the unease, with S&P 500 and Nasdaq futures pointing lower ahead of the opening bell.
Global markets echoed the weakness, with major indexes in Europe and Asia also trading lower. A firmer U.S. dollar and ongoing geopolitical tensions added to the pressure, contributing to a synchronized pullback across asset classes.
FAQ Why are U.S. stocks falling on Feb. 5, 2026? Equities declined as investors sold technology shares amid valuation concerns and weaker economic data. Which indexes were hit the hardest? The Nasdaq Composite led losses, followed by the S&P 500 and Dow Jones Industrial Average. What sectors drove the selloff? Technology, software, semiconductors, and communication services were the biggest laggards. Is market volatility increasing? Yes, with the VIX near 21, signaling heightened uncertainty across markets.
