Wall Street Retreats as Tech Earnings Disappoint and Government Shutdown Drags On

New York — Feb. 3, 2026. U.S. equities turned lower Tuesday as investors sifted through a heavy slate of technology earnings, watched volatility in precious-metal markets, and assessed the economic impact of a partial federal government shutdown now in its fourth day.

The Nasdaq Composite fell 1.6% after an early climb, the S&P 500 shed 0.9%, and the Dow Jones Industrial Average slipped 0.4%. Tuesday’s reversal followed a 500-point gain for the Dow on Monday.

Tech sector shifts from early optimism to broad sell-off

Software and semiconductor names set the tone for the session. Data-analytics firm Palantir Technologies opened sharply higher after reporting a surge in revenue driven by demand for its artificial-intelligence platform and issuing guidance above Wall Street estimates. The early pop faded, however, as selling broadened across the sector.

Nvidia dropped more than 3% amid reports that talks with startup OpenAI over a potential multibillion-dollar investment have cooled. Amazon.com and Microsoft also lost ground, extending a multiday decline in large-cap software stocks.

Attention now turns to Advanced Micro Devices, scheduled to release quarterly results after the closing bell. Traders view AMD’s numbers as a barometer for whether the recent enthusiasm around AI-related spending can be sustained ahead of earnings from Amazon and Alphabet later in the week.

Key corporate headlines

PayPal tumbled 16% after posting earnings that missed expectations and projecting weaker-than-anticipated profit for 2026. The digital-payments firm simultaneously announced that HP Inc. chief Enrique Lores will become its new chief executive on March 1.

The Walt Disney Company slid after naming parks division head Josh D’Amaro to succeed Bob Iger as chief executive on March 18. Iger will remain on the board through year-end.

Pharmaceutical giant Novo Nordisk saw its American depositary receipts plunge more than 14% when the company forecast a 5%–13% drop in 2026 sales for its flagship diabetes and obesity drugs Ozempic and Wegovy, citing intensifying competition and potential U.S. pricing pressures.

Walmart briefly crossed the US$1 trillion market-capitalization threshold as shares added more than 1%. The retail giant’s advance puts it among a small group of trillion-dollar companies traditionally dominated by technology leaders.

Elsewhere, Galaxy Digital sank over 4% after the crypto-focused financial firm reported a quarterly loss of nearly US$500 million, blaming weaker digital-asset prices and a 40% decline in trading volume.

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Precious metals stage sharp rebound

Gold futures jumped more than 6% in their largest single-day advance since 2008, rebounding from Friday’s steepest daily drop in 43 years. Silver futures surged roughly 13% in tandem. Analysts attributed the dramatic swing to bargain hunting and algorithmic trading after last week’s abrupt sell-off.

Government shutdown affects economic data releases

The partial shutdown that began on Jan. 31 has forced the Bureau of Labor Statistics to delay the December Job Openings and Labor Turnover Survey and the January employment report. Legislators in the House of Representatives are expected to vote later this week on a package of five appropriations bills aimed at reopening most affected agencies while postponing a decision on funding for the Department of Homeland Security.

According to historical estimates from the Congressional Budget Office, each week of a similar shutdown trims several tenths of a percentage point from quarterly GDP growth, raising concern that a protracted stalemate could dent first-quarter output.

Energy policy shift focuses on Venezuela

Separately, the White House is preparing to grant U.S. oil companies a general license to begin drilling in Venezuela, Bloomberg reported. The prospective authorization would follow a January decision permitting the purchase and sale of Venezuelan crude already in storage. Industry reaction has been mixed: Chevron has not detailed plans to expand current operations, while Exxon Mobil has labeled the country “uninvestable” under existing conditions.

Global semiconductor moves

Overseas, South Korea’s Kospi index climbed nearly 7% to a record high as Samsung Electronics and SK Hynix advanced on expectations of sustained demand for memory chips used in artificial-intelligence applications. Both stocks are up more than 39% year-to-date, reflecting a rebound in the global chip cycle.

In Europe, NXP Semiconductors fell 5% in U.S. pre-market trading despite beating earnings estimates; investors focused on slower growth in its automotive segment, which accounts for more than half the company’s revenue.

Outlook

Market participants will monitor AMD’s after-hours report, Wednesday’s earnings from PepsiCo, Pfizer, and Chipotle Mexican Grill, and any progress on Capitol Hill toward ending the government funding lapse. Additionally, movement in precious-metal prices remains a focal point after the week’s pronounced volatility.

Crédito da imagem: Getty Images