Software Shares Slide as Alphabet Earnings Loom; Gold Rebounds: Dow Jones, S&P, Nasdaq, Wall Street Futures
February 4, 2026 5:21 AM
IH Market News
Futures tied to major U.S. equity indices were modestly higher, even as a sharp sell-off in software stocks and looming earnings from big technology names shaped market sentiment. Investors are awaiting quarterly results from Google parent Alphabet (NASDAQ:GOOG), due after the opening bell, with particular focus on spending plans linked to artificial intelligence. Elsewhere, reports said Federal Reserve Governor Stephen Miran has stepped down from his role as a White House economic adviser, while fresh U.S. services-sector data is due and gold prices climb back toward $5,100 an ounce.
Futures point higher despite tech jitters
U.S. equity futures edged up early Wednesday as markets weighed growing unease around AI-exposed software stocks against anticipation of results from mega-cap technology groups.
By 02:53 ET, Dow futures were up 134 points, or 0.3%, S&P 500 futures had added 19 points, or 0.3%, and Nasdaq 100 futures were higher by 57 points, or 0.2%.
Wall Street’s main indices fell sharply in the previous session, dragged lower by heavy losses in AI leaders Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT), both of which slid nearly 3%. Sentiment toward software stocks has deteriorated as investors worry about intensifying competition from new AI models.
Those concerns deepened after AI firm Anthropic launched a new legal-analysis tool, triggering steep declines in shares of publishing and data companies such as Thomson Reuters (NYSE:TRI) and LegalZoom (NASDAQ:LZ). The weakness spread across the sector, hitting names including PayPal (NASDAQ:PYPL) and Expedia Group (NASDAQ:EXPE), which both fell more than 10%. According to the Wall Street Journal, two S&P indices tracking software, financial data and exchange companies together shed about $300 billion in market value.
“[T]he big story was the collapse in tech as the market increasingly views AI as a net negative, with companies levered to the aggressive infrastructure build no longer benefiting while fears about AI disruption and displacement decimate wide swaths of the market,” analysts at Vital Knowledge said in a note.
Not all stocks were under pressure, however. Shares of Walmart (NYSE:WMT) surged after the retailer continued to gain market share from cost-conscious consumers, lifting its market capitalisation to $1 trillion for the first time.
Alphabet results in focus
Against this volatile backdrop, traders are bracing for Alphabet’s earnings release later in the day. Attention is expected to centre on the group’s costly push into artificial intelligence, which includes billions of dollars earmarked for data centres and specialised chips.
Alphabet shares jumped roughly 29% in the final three months of 2025, buoyed by strong reception for its latest Gemini AI model and a partnership with Apple to support the iPhone maker’s Siri voice assistant. Analysts cited by Reuters have suggested Alphabet has pulled ahead in the race to develop and monetise AI, overtaking rivals such as Microsoft, which had previously benefited from early investments in AI developers.
“Google sentiment is (justifiably) very bullish as the company’s core advertising businesses continue to perform very well while it emerges as the best positioned firm in the entire AI ecosystem,” the Vital Knowledge analysts said. They cautioned, however, that it remains unclear whether strong results will stabilise sentiment around AI or instead intensify concerns about the wider ecosystem surrounding competitors like OpenAI.
Further insight into the health of the tech sector may come on Thursday, when Amazon (NASDAQ:AMZN) is scheduled to report. Outside technology, pharmaceutical group Eli Lilly (NYSE:LLY), which has made major investments in weight-loss drugs, is also among the earnings highlights before U.S. markets open later Wednesday.
Reports: Miran exits White House adviser role
Media reports said Stephen Miran has resigned from his position as an economic adviser to the White House, honouring a commitment he made to the U.S. Senate. The move allows Miran—appointed last year by President Donald Trump to temporarily fill a vacancy on the Federal Reserve Board until January 31—to remain at the central bank until a successor is confirmed.
“I promised the Senate that if I should stay on the Board past January, I would formally depart the Council,” Miran said in a resignation letter cited by multiple outlets, adding that it was “important to stay true to my word.”
Since joining the Fed, Miran has been a vocal advocate for aggressive interest-rate cuts, often diverging sharply from other policymakers. His stance has aligned with Trump’s calls for rapid rate reductions to support economic growth, drawing criticism from some Democratic senators who have urged him to resign from the Fed board “immediately.”
U.S. services data awaited
The Federal Reserve last month held rates steady in the 3.5%–3.75% range, despite dissent from Miran and Fed Governor Christopher Waller. While labour market indicators have softened, inflation has remained above the Fed’s 2% target, reducing urgency among policymakers to resume the aggressive easing seen in 2025.
With the monthly U.S. jobs report delayed earlier this week, attention will turn to other indicators, including January data on services-sector activity. The Institute for Supply Management’s non-manufacturing PMI is expected at 53.5, down from 54.4 previously. Readings above 50 signal expansion.
Gold climbs back toward $5,100
Gold prices pushed higher on Wednesday, moving back toward $5,100 per ounce as renewed tensions between the U.S. and Iran boosted demand for safe-haven assets. The metal extended gains after rebounding sharply from losses earlier in the week.
Safe-haven buying intensified following reports that the U.S. shot down an Iranian drone approaching a U.S. aircraft carrier in the Arabian Sea. Separately, Iranian gunboats were seen near a U.S.-linked tanker in the Strait of Hormuz.
These developments undermined earlier comments from Tehran and Washington suggesting talks would take place on Friday. News of the planned discussions had briefly eased market anxiety and reduced demand for gold.
Alphabet stock price
Nvidia stock price
Microsoft stock price
Thomson Reuters stock price
LegalZoom.com stock price
PayPal stock price
Expedia stock price
Walmart stock price
Original: Software Shares Slide as Alphabet Earnings Loom; Gold Rebounds: Dow Jones, S&P, Nasdaq, Wall Street Futures
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