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Here is Your Complete Market Rundown (02/05/2026)
Company News
Alphabet Inc. (GOOG)
Performance Overview
1D Change: -0.61%
5D Change: -2.15%
News Volume: 301
Unusual Volume Factor: 4x
Google Doubles Down on AI with Record $185 Billion Spending Plan as Cloud Growth Surges 48%
Alphabet announced plans to potentially double its capital expenditure in 2026 to between $175 billion and $185 billion, approximately 50% above analyst expectations, as the Google parent company intensifies its AI infrastructure investments. The announcement came alongside strong fourth-quarter results that initially impressed Wall Street but ultimately sent shares down as much as 7% before recovering to close flat. The spending surge reflects what CEO Sundar Pichai described as capacity constraints that “keep us up at night,” with the company citing limitations in power, land, and supply chains as it races to maintain its AI leadership position.
Google Cloud delivered standout performance with 48% year-over-year growth, significantly exceeding the 36% analysts expected, while the company’s Gemini AI platform reached 750 million monthly users. YouTube generated $60 billion in annual revenue, further demonstrating the breadth of Alphabet’s business strength.
Wall Street analysts largely maintained bullish outlooks despite the stock’s initial decline, with multiple firms raising price targets. Goldman Sachs lifted its target to $400, Mizuho to $410, and BMO Capital to $400, citing confidence in Alphabet’s AI-driven positioning. Analysts emphasized that the company’s strong revenue performance across advertising, cloud, and subscriptions provides cover for the aggressive spending increase.
The market reaction highlighted investor anxiety about the sustainability of massive AI investments across the technology sector, coming after similar spending announcements from Meta and Microsoft. However, the capex boost proved positive for semiconductor suppliers, with Broadcom shares rising over 5% on expectations of increased chip demand. Analysts noted that Alphabet has transformed from being perceived as an AI laggard a year ago to now being viewed as a front-runner against competitors like OpenAI. Several analysts characterized the stock pullback as a buying opportunity, with Wedbush’s Dan Ives calling it “a table pounder time to own” AI leaders. The spending plan underscores the company’s commitment to maintaining its competitive position in artificial intelligence, even as investors weigh near-term profitability concerns against long-term growth potential in the rapidly evolving AI landscape.
, Inc. (AMZN)
Performance Overview
1D Change: -4.53%
5D Change: -8.01%
News Volume: 222
Unusual Volume Factor: 3x
Amazon Stock Plunges 10% on $200 Billion AI Spending Forecast Despite Strong Cloud Growth
Amazon shares tumbled in after-hours trading Thursday following fourth-quarter earnings that revealed a massive $200 billion capital expenditure plan for 2026, far exceeding Wall Street’s $146 billion estimate. The company missed earnings per share expectations by a penny at $1.95 while beating revenue forecasts with $213.39 billion in net sales. The stock decline came despite robust performance from Amazon Web Services, which posted its fastest growth rate in three years and crossed $10 billion in annual recurring revenue for its custom-chip business. AWS operating income reached $24.98 billion, slightly above the $24.82 billion estimate. However, investors expressed concern that AWS margins are compressing as AI-related expenses surge.
The aggressive spending plan reflects Amazon’s determination to compete in the escalating AI infrastructure race, joining tech giants Microsoft and Alphabet in ramping up capital investments. Analysts estimate approximately 80% of the 2026 capex will be AI-related, focused on data centers, chips, and related equipment. The earnings report came amid broader market turbulence triggered by AI startup Anthropic, which released new AI tools that sparked a selloff across software and financial services stocks. Anthropic launched Claude Opus 4.6 with enhanced financial research capabilities and coding improvements, raising concerns about AI disruption to traditional IT services. The company’s CEO warned of potential 5-10% GDP growth alongside 10% unemployment due to AI-driven productivity shifts.
In regulatory news, Germany’s Federal Cartel Office banned Amazon from imposing price controls on retailers and clawed back 70 million euros in fines. Separately, the company announced layoffs affecting thousands of workers as it closes Amazon Fresh stores, though severance packages and transfer options were offered to affected employees.
The market reaction underscores investor anxiety about the timeline for returns on massive AI investments, even as cloud computing fundamentals remain strong. Amazon’s first-quarter 2026 revenue guidance of $173.5-$178.5 billion came in line with the $175.54 billion consensus estimate.
UBS Group Ag (UBS)
Performance Overview
1D Change: -2.42%
5D Change: -9.10%
News Volume: 123
Unusual Volume Factor: 1x
UBS Faces Credit Suisse Nazi-Era Risks While Analysts Issue Wave of Rating Changes and Precious Metals Forecasts
UBS confronts mounting legal exposure from Credit Suisse’s historical Nazi dealings following its emergency acquisition of the troubled Swiss bank, according to analysis by Paul J. Davies. The legacy risks add complexity to UBS’s integration efforts as the merged entity navigates regulatory scrutiny. The bank’s research division issued numerous rating changes across sectors. Notable upgrades included Ermenegildo Zegna to Buy on stronger Western demand outlook with 18% upside potential, while Webster Financial was downgraded to Neutral following its Santander deal. UBS maintained Buy ratings on multiple stocks including Arm Holdings, Tenable, and Boot Barn, though several technology and healthcare names saw price target reductions despite maintained ratings.
UBS’s commodities desk released bullish precious metals forecasts, projecting gold could reach $5,900 per ounce by year-end 2026, representing approximately 24% upside from current $5,000 levels. The outlook cited central bank diversification and safe-haven demand as key drivers. Silver received similar bullish treatment, though the metal experienced sharp intraday volatility with a 15% drop to $28 per ounce. The bank also identified a third major lithium price cycle emerging.
Investment banking units at UBS saw bonus pools increase up to 20% for 2025, reflecting strong performance in certain divisions. Swiss banking regulators characterized proposed new UBS regulations as targeted and focused, addressing too-big-to-fail concerns without elaborating on specific requirements.
The bank raised price targets on Amazon ahead of earnings, citing positive AWS cloud computing outlook, and adjusted numerous other targets across consumer, industrial, and technology sectors while maintaining most existing ratings.
Qualcomm Incorporated (QCOM)
Performance Overview
1D Change: -8.48%
5D Change: -10.46%
Qualcomm Shares Plunge 11% on Memory Shortage Warning and Weak Guidance
Qualcomm shares dropped sharply on February 5, 2026, falling as much as 12% in premarket trading before closing down approximately 8-11%, despite beating fourth-quarter earnings expectations. The semiconductor company issued a disappointing revenue forecast for the coming quarters, warning that the handset industry will face constraints from memory availability and pricing, particularly DRAM. The memory chip shortage is driving up component costs and raising concerns about reduced consumer demand for smartphones as prices increase.
Arm Holdings also fell 7% on similar concerns, reflecting broader supply chain stress across the semiconductor industry. Major PC makers are reportedly considering Chinese memory chips as the global shortage intensifies. Multiple analysts downgraded their outlook on Qualcomm following the earnings report. Bank of America lowered its rating, citing a weak handset market and market share losses, while Susquehanna downgraded the stock from Positive to Neutral.
Price targets were reduced across Wall Street, with TD Cowen cutting its target to $150 from $190, Wells Fargo lowering to $135 from $165, and RBC Capital reducing to $150 from $180. However, some analysts maintained positive ratings. Piper Sandler kept its Overweight rating with a 46% upside target, while Robert W. Baird maintained a $177 price target representing 30% upside. Some analysts characterized the selloff as a mispricing rather than a structural shift in Qualcomm’s business.
CEO Cristiano Amon expressed confidence that the company would begin seeing data center revenue in 2027. The stock’s decline contributed to broader market weakness, with Qualcomm and Alphabet among the top drags on the S&P 500 and Nasdaq, which both fell approximately 1% in early trading.
Eli Lilly And Company (LLY)
Performance Overview
1D Change: -7.89%
5D Change: -0.33%
Eli Lilly Beats Q4 Estimates as Analysts Raise Targets Despite GLP-1 Competition Pressure
Eli Lilly reported fourth-quarter results that exceeded analyst estimates, driven by robust demand for its GLP-1 weight loss drug Zepbound. Despite the positive earnings, shares declined approximately 5% following news that Hims & Hers launched a $49 monthly compounded semaglutide pill, intensifying competition in the weight loss drug market. Novo Nordisk also tumbled on the same news.
Major brokerages responded with bullish outlooks, raising price targets across the board. BMO Capital lifted its target to $1,300, Wells Fargo to $1,280, Goldman Sachs to $1,260, Scotiabank to $1,300, and Truist to $1,281. All firms maintained buy-equivalent ratings, with projected upside ranging from 14% to 25%.
Analysts cited a “clear runway into next decade” and emphasized strong 2026 guidance that addresses demand concerns. The divergent performance between Eli Lilly and competitor Novo Nordisk highlighted what analysts termed “the metabolic split,” with investors rewarding Lilly’s execution despite broader competitive pressures in the GLP-1 market.
Technology Events
Major PC Makers Consider Chinese Memory Chips as Global Shortage Intensifies
HP, Dell, Acer, and Asus are exploring Chinese memory chip suppliers, including ChangXin Memory Technologies, to address a worsening global supply crunch. HP has already begun sourcing from Chinese manufacturers. The shortage is affecting multiple sectors, with Qualcomm warning that handset production will face constraints from DRAM availability and pricing pressures in coming quarters.
OpenAI Launches Frontier Platform for Enterprise AI Agent Deployment
OpenAI unveiled Frontier, a new enterprise platform enabling companies to build and manage AI agents designed to automate high-value work tasks as AI "coworkers."
Tech stocks plunge as AI concerns trigger trillion-dollar selloff across sector
A trillion-dollar tech wipeout swept markets as AI-related fears sparked widespread selling, though analysts suggest the sector may be overreacting to concerns about AI's impact on traditional software businesses.
Crypto Events
Bitcoin Plunges Below $67,000 Amid Analyst Warnings and Tech Selloff
Bitcoin dropped below $67,000, reaching its lowest level since October 2024, pressuring crypto-related stocks including Robinhood. Stifel analysts warned of potential further decline to $38,000 in a prolonged downturn. Treasury Secretary Bessent stated the government cannot direct banks to support crypto, contributing to selling pressure alongside broader tech market weakness.
Strategy Reports $12.4 Billion Q4 Loss on Bitcoin Holdings
Strategy posted a $12.4 billion fourth-quarter loss driven by unrealized bitcoin write-downs as cryptocurrency prices tumbled, sending MSTR shares to an 18-month low and erasing $40 billion in value over four months.
House Probes Trump-Linked Crypto Deal as Nvidia Challenges China Export Rules
World Liberty Financial faces congressional investigation over an alleged $500 million UAE-linked investment, with lawmakers examining potential conflicts of interest and whether funds reached Donald Trump's family. Separately, Nvidia warned the Trump administration that new chip export restrictions for China are excessively strict and could eliminate demand for its H200 AI chips from major buyers including Alibaba and ByteDance. At the National Prayer Breakfast, Trump criticized Republican Representative Thomas Massie while discussing various policy positions including Iran negotiations and European energy policy.
JPMorgan Elevates Bitcoin Over Gold as Volatility Gap Narrows to Record Low
JPMorgan analysts now rate Bitcoin as more attractive than gold for long-term investment, citing Bitcoin's record-low volatility ratio of 1.5 relative to gold. The shift comes as gold shows rising volatility despite gaining 7% year-to-date in 2026, while Bitcoin trades at oversold levels. Analysts set a volatility-adjusted price target of $266,000 for Bitcoin, noting that recent crypto weakness has produced only modest liquidations despite continued outflows from spot Bitcoin ETFs.
Treasury Rejects Bitcoin Bailout as Corporate Treasury Models Face Volatility Test
U.S. Treasury Secretary Bessent confirmed the department lacks authority to bail out Bitcoin, as corporate treasury strategies holding BTC face mounting pressure from market volatility, with analysts warning of potential risks.
Macro Events
Bank of England Holds Rates at 3.75% in Narrow 5-4 Vote as Inflation Falls Faster Than Expected
The Bank of England kept its key interest rate unchanged at 3.75% in a surprisingly close 5-4 vote, with four members favoring a quarter-point cut to 3.5%. Those voting for a reduction included Dhingra, Taylor, Ramsden, and Breeden, while Bailey, Green, Lombardelli, Mann, and Pill supported holding steady. Governor Andrew Bailey delivered optimistic news, stating inflation is falling more quickly than anticipated and will return to the 2% target a year earlier than November forecasts predicted. Second-quarter inflation is now expected to come in 0.7 percentage points lower than previously forecast, largely due to utility price support from the November budget. The central bank projects inflation will drop to around 2% from April, driven primarily by energy prices. Bailey signaled room for further monetary easing, calling the market's expectation of two more rate cuts "reasonable" while declining to specify timing. He emphasized he sees no rate hiking scenario ahead and noted that risks of persistent inflation have become less pronounced. The MPC acknowledged differing views on the timing and extent of future rate reductions. The bank upgraded its economic outlook, forecasting GDP growth will improve to 2% annually by 2028, supported by consumption and a stronger housing market. Pay growth is expected to moderate to around 3.2% by year-end, with underlying employment remaining flat over the past year. Separately, the European Central Bank held rates steady at 2.00% on deposits, maintaining its data-dependent stance amid steady eurozone growth and near-target inflation.
Treasury Secretary Bessent Defers to Trump on Potential Fed Legal Action as Tech Export Tensions Rise
Treasury Secretary Bessent repeatedly stated that President Trump will decide whether to pursue legal action against Fed officials, including Kevin Warsh, over interest rate policy. The administration escalated diplomatic tensions by cutting contact with Poland's parliament speaker over alleged Trump insults. Meanwhile, Trump publicly criticized Republican Rep. Thomas Massie as a "moron" at the National Prayer Breakfast. In corporate news, Nvidia warned that Trump's China chip export restrictions are overly strict, while Lennar explores building "Trump Homes."
US Jobless Claims Jump to 231K, Highest in Two Months
US initial jobless claims rose 22,000 to 231,000 for the week ending January 31, significantly exceeding the 212,000 forecast and marking the highest level in two months. The increase represents a notable acceleration from the previous week's 209,000. Continuing claims climbed to 1.844 million, up 25,000 from two weeks prior, though slightly below the 1.850 million estimate.
U.S. Job Market Weakens as Openings Hit Post-Pandemic Low Amid Jobless Growth
Job openings have fallen to their lowest level since the pandemic, with minimal new job creation, according to MarketWatch. Despite economic expansion, the U.S. faces a jobless recovery characterized by low hiring alongside low layoffs and unemployment. Meanwhile, Bank of Canada Governor Macklem signals vigilance on policy risks during structural changes, while Trump's Federal Reserve nominee Kevin Warsh proposes central bank reforms. The pound declined against the Canadian dollar following a dovish Bank of England decision.
US Job Market Weakens as Layoffs Surge 117.8% and Openings Fall Below Forecasts
January layoffs jumped to 108,435 jobs, led by UPS and Amazon, while December job openings dropped to 6.542 million versus 7.2 million expected. Jobless claims rose 22,000 to 231,000, marking a two-month high and signaling mounting economic uncertainty.
U.S. January Job Cuts Hit Highest Level Since 2009 Financial Crisis
American employers announced 108,435 layoffs in January, marking a 205% surge from December and the highest January total in 17 years, according to Challenger, Gray & Christmas. The transportation sector led cuts, with UPS planning up to 30,000 job reductions, driving the worst start-of-year employment picture since the Great Recession.
Fixed Income And Interest Rates Events
Treasury Bonds Face Dual Pressures as Hedge Funds Unwind Positions and AI Concerns Trigger Selloff
Bond markets declined amid mounting concerns over artificial intelligence developments and economic uncertainty, with crowded hedge fund Treasury positions at risk of rapid unwinding. VivoPower abandoned its cryptocurrency treasury strategy following market turbulence that pushed Bitcoin below $70,000, causing its stock to plummet. Financial advisors warn pre-retirees that current stock market stability may be deceptive, recommending increased bond allocations despite recent volatility.
Corporate Actions Events
Reddit Surges on Q4 Earnings Beat and $1 Billion Buyback Announcement
Reddit exceeded fourth-quarter expectations on revenue and profit, driven by strong advertising growth. The social media platform announced a $1 billion share repurchase program alongside robust forward guidance, sending shares higher in volatile trading. The earnings beat marks continued momentum for Reddit's advertising business.
Rio Tinto and Glencore Abandon Merger Talks, Sending Glencore Shares Down 10%
Rio Tinto and Glencore have ended merger discussions, reportedly over pricing disagreements. The collapse of talks triggered a sharp 10% decline in Glencore shares as investors reacted to the failed combination.
Eikon Therapeutics debuts on Nasdaq at $860 million valuation, opens below IPO price
Eikon Therapeutics, led by Merck veteran Perlmutter, began trading on Nasdaq with an $860 million valuation. The biotech company's shares opened at $17.05, below its $18 IPO price, marking a modest decline in its market debut.
Earnings Events
Roblox Shares Surge 20% on Strong Q4 Earnings Beat
Roblox stock jumped 20% after reporting fourth-quarter results that exceeded expectations, with earnings beating estimates by $0.02 and revenue topping forecasts, alongside an optimistic forward outlook.
News Corp Beats Q4 Revenue and Earnings Estimates
News Corp exceeded fourth quarter fiscal 2025 expectations, with earnings surpassing estimates by $0.03-$0.04 per share and revenue topping analyst projections across multiple share classes.
Bristol Myers Beats Earnings; CRISPR Rated Outperform; Ocugen Awaits SOL-1 Data
Bristol Myers reported stronger-than-expected earnings driven by blood thinner and cancer immunotherapy sales. Citizens maintained its Outperform rating on CRISPR Therapeutics, citing undervalued pipeline potential. Ocugen's SOL-1 Phase 3 trial results remain masked ahead of presentation at the Macula Society meeting, with NDA submission planned for wet AMD treatment.
Amazon Stock Plunges 10% Despite Strong Cloud Growth on $200B Spending Forecast
Amazon shares fell sharply following mixed Q4 results and an earnings miss, despite robust AWS cloud performance. Investors reacted negatively to the company's projected $200 billion capital expenditure plan focused on AI infrastructure, raising concerns about near-term profitability and the scale of spending commitments ahead.
Geopolitics Events
Trump Criticizes GOP Lawmaker and Wind Power at Prayer Breakfast as US-Russia Military Dialogue Resumes
President Trump used the National Prayer Breakfast to attack Republican Rep. Thomas Massie as a "moron" while criticizing wind power and claiming the 2020 election was rigged. Trump praised USTR Tulsi Gabbard and touted achievements including defeating ISIS and securing Olympics and World Cup hosting rights. Meanwhile, the US and Russia agreed to reestablish high-level military dialogue and are nearing a deal to extend the New START nuclear arms treaty, according to Axios. Nvidia warned the Trump administration that new China chip export rules are too restrictive and could eliminate demand for its H200 AI chips from major buyers like Alibaba and ByteDance. Separately, World Liberty Financial faces a House probe over an alleged $500 million UAE-linked investment involving potential conflicts with the Trump family.
Trump to Launch TrumpRx Prescription Drug Discount Website Thursday
President Trump will unveil TrumpRx Thursday, a website enabling direct prescription drug purchases at discounted prices. The initiative addresses American concerns about drug affordability. A Super Bowl advertisement featuring Trump accounts will air Sunday promoting the platform.
US and Russia Agree to Resume Military Dialogue, Near Nuclear Treaty Extension
The United States and Russia have agreed to reestablish high-level military-to-military talks, according to US European Command. The nations are also nearing a deal to extend the New START nuclear arms treaty.
Taiwan President Affirms Strong US Ties as Trump and Xi Discuss Taiwan and Trade
Taiwan's president declared relations with the US "rock solid" following a Trump-Xi call where China reasserted its Taiwan stance and the US president pressed on trade issues. Meanwhile, Washington launched initiatives to counter China's critical minerals dominance through allied trading blocs, while China's solar sector braces for sharply reduced installations in 2026 amid policy changes.
Oil And Gas Events
Oil Inventories Fall as Shell Eyes Venezuela Expansion
U.S. crude stocks declined 3.5 million barrels while natural gas storage dropped 360 billion cubic feet, less than the 379 billion forecast, indicating softer demand. Shell is considering multibillion-dollar offshore investments in Venezuela, CEO confirmed to CNBC. Oil prices traded lower ahead of Friday's U.S.-Iran nuclear talks. Neste Oil reported strong fourth-quarter EBITDA results. Analysts cite valuation support for Exxon Mobil despite technical concerns.
Shell Q4 Profit Falls to $3.3 Billion, Missing Estimates on Lower Crude Prices
Shell reported fourth-quarter profit of $3.3 billion, below analyst expectations, as sliding crude oil prices pressured earnings. Despite the profit decline and miss, the energy giant maintained its share buyback program at current levels.
Stock Markets Events
Bob's Discount Furniture Debuts Flat at $17 in NYSE Trading
Bob's Discount Furniture opened at its $17 IPO price in muted NYSE debut, valuing the furniture retailer at $2.22 billion with shares trading flat.
Healthcare Events
Hims & Hers Launches $49 Wegovy Copy as Health Insurers Face Medicare Cuts and PBM Scrutiny
Online telehealth company Hims & Hers Health will offer compounded copies of Novo Nordisk's Wegovy weight loss pill at $49 monthly, roughly $100 below brand pricing, sending Novo Nordisk and Eli Lilly shares lower. Meanwhile, UnitedHealth, CVS, and Humana confront dual pressures from Trump administration Medicare cuts and regulatory scrutiny of pharmacy benefit manager spread pricing practices.
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