Wall Street Slid as much as 1.4%, Dragged Down by Losses in Tech
More than 100 companies in the S&P 500 are set to report earnings this week, a flow of results that is likely to set the tone for markets.
Quick overview
- The announcement of a trade agreement between India and the U.S. was overshadowed by the departure of PayPal's CEO, contributing to losses in major stock indexes.
- Wall Street's major indexes fell on February 3, with technology stocks experiencing sharp declines amid disappointing earnings and sector rotation.
- The U.S. shot down an Iranian drone, adding pressure to the markets, although scheduled talks with Iran are still expected to proceed.
- Earnings season is underway, with over 100 S&P 500 companies set to report, while Palantir Technologies saw a surge in shares due to strong revenue growth.
The announcement of a trade agreement between India and the United States was overshadowed by the departure of PayPal’s CEO. Against that backdrop, the Nasdaq led losses among New York’s main benchmarks.
Wall Street’s major indexes fell on Tuesday, February 3, with technology stocks sliding sharply amid sector rotation and disappointing quarterly earnings. Monday’s bond selloff also weighed on equities, even as gold and silver prices rebounded after suffering steep losses.
The Dow Jones Industrial Average slipped 0.3% to 49,241.06 points, the S&P 500 dropped 0.9% to 6,917.18, and the Nasdaq Composite fell 1.4% to 23,255.19.
Markets react to geopolitical headlines
All three benchmark indexes came under pressure following reports that the United States shot down an Iranian drone that had approached a U.S. Navy aircraft carrier.
“According to the White House, the United States shot down an Iranian drone,” press secretary Karoline Leavitt confirmed on Tuesday during an interview on Fox News’ America Reports, corroborating earlier media reports.
Despite the incident, Leavitt said that previously scheduled talks with Iran are still expected to proceed later this week.
Treasuries and metals in focus
U.S. Treasury yields moved higher after stronger-than-expected U.S. manufacturing data released on Monday. Meanwhile, gold and silver prices rebounded sharply after posting historic losses in the prior session.
Earnings season takes center stage
More than 100 companies in the S&P 500 are set to report earnings this week, a flow of results that is likely to set the tone for markets in the days ahead.
- Shares of AI favorite Palantir Technologies surged 6.8% after the data analytics firm posted record fourth-quarter 2025 revenue of $1.41 billion, driven by strong demand for its AI-enhanced tools from government and corporate clients.
- PayPal, by contrast, plunged 20.2% after the payments technology company missed quarterly expectations and announced the appointment of a new chief executive.
- Novo Nordisk shares sank 14.7% after the Danish pharmaceutical company warned of a significant slowdown in commercialization growth for 2026.
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