U.S. stock markets fell sharply on Thursday as a wave of risk-off sentiment swept across financial markets, pressuring equities alongside metals and cryptocurrencies such as Bitcoin.
Technology stocks led the decline, extending recent losses after disappointing earnings reactions from Qualcomm and Alphabet. Weaker-than-expected labor market data further dampened investor confidence.
By 10:44 ET (15:44 GMT), the S&P 500 was down 1.2% at 6,802.02, while the Nasdaq Composite slid 1.4% to 22,584.78. The Dow Jones Industrial Average also moved lower, falling 1.1% to 48,937.61.
Technology sector remains under pressure
Wall Street closed mixed on Wednesday, as the ongoing rotation away from technology continued to weigh on major indexes. Software stocks have been hit particularly hard amid concerns that artificial intelligence could disrupt traditional business models. Those losses have now spread to chipmakers, as investors reassess AI spending plans and elevated valuations.
Alphabet added to market anxiety after unveiling capital expenditure plans of up to $185 billion for 2026—far above expectations. The announcement weighed heavily on sentiment, sending the company’s Class A shares down roughly 5%.
Qualcomm plunged 9.5% after issuing weaker-than-expected guidance for the current quarter. The chipmaker cited a global memory chip shortage, which it expects to weigh on smartphone sales and broader device demand.
According to AJ Bell investment director Russ Mould, strong earnings alone are no longer enough to lift share prices. Investors are increasingly demanding upside surprises, especially from companies committing vast sums to AI investment. As a result, capital is gradually rotating away from heavy AI spenders toward firms that are already translating AI adoption into efficiency gains and revenue growth.
Attention now turns to Amazon, whose earnings after the close are seen as a key test for the technology sector.
January job cuts hit highest level since 2009
Economic data also weighed on markets. Challenger, Gray & Christmas reported 108,435 U.S. job cuts in January—the highest January total since 2009 and nearly triple December’s figure.
Weekly jobless claims rose to 231,000, exceeding expectations, while continuing claims increased to 1.844 million. Meanwhile, job openings fell sharply in December to 6.542 million, well below forecasts.
Following the data, market expectations for a Federal Reserve rate cut in March rose, with traders now assigning nearly a 16% probability. The Fed left interest rates unchanged last week at 3.5%–3.75% after delivering three cuts in 2025.
Gold, silver and oil retreat sharply
Commodities also came under pressure. Gold prices reversed earlier gains, while silver suffered a steep sell-off, erasing its recent rebound. Spot silver dropped as much as 16% to around $73.55 per ounce, with futures recording similar losses.
Oil prices fell sharply after the U.S. and Iran agreed to hold talks in Oman, easing fears of supply disruptions from the Middle East. Brent crude slid 3.5% to $67.00 per barrel, while U.S. crude dropped 3.7% to $62.74.
Both benchmarks had surged roughly 3% the previous session on speculation that the talks could collapse, underscoring heightened volatility across global markets.
