Dow Plummets 611 Points While Gold Soars to Record Highs—Is Your Portfolio Safe?

Wall Street Faces Turbulent Day as Tech Stocks Slide

On February 5, 2026, Wall Street experienced a turbulent trading day as investors sharply pulled back from high-flying tech stocks and other riskier assets, including Bitcoin. Market reactions were fueled by disappointing earnings surprises from major players like Alphabet Inc. and Qualcomm Inc., coupled with rising concerns about layoffs and waning enthusiasm for artificial intelligence (AI) investments. As a result, major indices closed lower, with the Nasdaq suffering its biggest drop in three sessions since spring 2025, falling by 351 points, or 1.5%, to finish at 22,905. The S&P 500 also fell 0.5% to 6,883, while the Dow Jones Industrial Average posted a modest gain of 260 points, or 0.5%, reaching a new high of 49,501, as investors sought refuge in safer investments amid heightened market volatility.

The day's trading activity highlighted a significant divergence in market sectors. The Dow, buoyed by traditional blue-chip stocks like Travelers and JPMorgan, managed to avoid the steep declines affecting its tech counterparts. Meanwhile, the Nasdaq Composite Index suffered more acutely, closing at 22,487.73 after a loss of 416.85 points, or 1.82%. This marked the culmination of the index's worst three-day loss of over 4%, driven primarily by a sell-off of technology heavyweights following Qualcomm's disappointing forecast.

In the S&P 500, a notable 94.19-point decline brought the index to 6,788.53, marking its second consecutive day of losses. The energy and technology sectors were hit particularly hard, with losses of 2.1% and 2.4%, respectively. In contrast, healthcare stocks managed to gain, increasing by 0.8%, suggesting a flight to quality as investors focused on more stable sectors.

The New York Stock Exchange (NYSE) reported a surge in turnover, with trading volume up by 15% over normal levels, indicative of panic selling. The composite stocks on the NYSE fell by nearly 1.45%, while financial and retail stocks struggled. In a silver lining, pharmaceutical companies showed resilience, with Merck shares rising by 2.81% amid the broader turmoil.

In the crypto market, Bitcoin dropped below $70,000 for the first time since Donald Trump's 2024 reelection, plunging as low as $68,113—a steep decrease of 6.7%. This breach of a significant support level raises concerns about a potential deeper crypto winter, with the next key level to watch being $60,000.

The precious metals market exhibited mixed results, with gold falling 2.58% to $4,836.28 an ounce, after recently trading near a peak of over $5,625. Silver suffered an even steeper decline, losing 15.35% to price at $74.66 an ounce. These movements reflect ongoing inflation concerns and a shift toward risk-averse investments, even as 10-year U.S. Treasury yields climbed to 4.24%.

Adding to the economic concerns, January saw layoff announcements soar to a staggering 108,435, marking the highest level since 2009. This figure represents a 118% increase year-over-year and a dramatic 205% spike compared to December 2025. The surge in layoffs has heightened recession fears, coinciding with an unexpected rise in jobless claims, painting a troubling picture for the labor market.

Stock performance was notably affected by the early trading of Alphabet, which saw shares dip by 4-8% to below $307. The company announced a projected $185 billion in AI capital expenditures for 2026, exceeding prior estimates. This surprised investors who were looking for immediate profit growth rather than increased spending, contributing to a broader sell-off of so-called "Magnificent Seven" stocks, which include tech giants like Amazon and Microsoft.

In today's trading, the top gainers included:

• Merck & Co (MRK): +3.32 to $121.65 (+2.81%) – showing strength in the pharmaceutical sector.
• Travelers Companies (TRV): +5.32 to $300.52 (+1.80%) – indicating defensive buying patterns.
• Johnson & Johnson (JNJ): +4.03 to $238.50 (+1.72%) – a solid performer in healthcare.
• Amgen (AMGN): +6.02 to $372.22 (+1.64%) – a biotech company bucking the overall trend.
• Coca-Cola (KO): +1.27 to $78.62 (+1.64%) – a consumer staple holding firm.

Conversely, the day’s top losers included:

• Amazon (AMZN): -10.70 to $222.29 (-4.59%) – affected by a market rotation away from tech.
• Microsoft (MSFT): -14.84 to $399.35 (-3.58%) – cloud and AI spending doubts weighed heavily.
• Goldman Sachs (GS): -32.42 to $880.88 (-3.55%) – banks reflecting broader rate jitters.
• Salesforce (CRM): -6.44 to $193.00 (-3.23%) – experiencing intensified selling pressure.
• JPMorgan Chase (JPM): -10.14 to $307.13 (-3.20%) – financials also faltering in the downturn.

As the market grapples with these developments, analysts are left to ponder the implications for the future. Concerns over tech stock valuations, rising layoffs, and a shifting economic landscape suggest that volatility may be here to stay. The coming weeks will likely be critical for investors as they assess the sustainability of recoveries in safer sectors amidst a backdrop of uncertainty.