Finance: U.S. stocks tumbled sharply on Thursday as a widening sell-off in technology shares rattled Markets, dragging major indexes lower and spilling over into commodities and digital assets. Investors, already unsettled by fears that artificial intelligence is reshaping and threatening established business models, found little relief in fresh economic data or corporate earnings previews.
By early afternoon, the Dow Jones Industrial Average was down more than 500 points, a decline of just over 1%. The S&P 500 slid roughly 1.2%, while the tech-heavy Nasdaq Composite fell about 1.5%, extending a multi-day rout that has erased hundreds of billions of dollars in market value.
At the center of the turmoil is a fast-moving reassessment of the technology sector. Investors are questioning whether years of heavy spending on artificial intelligence will deliver profits quickly enough, and whether new AI tools could undercut traditional software companies altogether. The result has been what some analysts describe as a trillion-dollar wipeout across stocks most exposed to the AI transition.
Alphabet shares sank more than 5% after the Google parent disclosed plans to dramatically ramp up AI investment, potentially reaching $185 billion. The announcement heightened concerns that significant capital outlays could pressure earnings as competition in the AI space accelerates.
Attention now turns to Amazon, which is scheduled to report earnings after the market closes. Investors are closely watching for signals from Amazon Web Services, the company’s cloud division, which is expected to post strong growth. Still, anxiety remains high after recent signs of slowing cloud demand elsewhere in the industry.
Economic data added to the gloom. Weekly jobless claims rose more than expected, while job openings fell to their lowest level since 2020. Separate figures showed January was the worst month for layoff announcements since the depths of the Great Recession in 2009. Together, the reports suggest a labor market that is losing momentum as 2026 begins.
The sell-off was not confined to equities. Silver prices plunged as much as 17%, wiping out a recent rebound after reports that Chinese buyers rapidly unloaded holdings. The sharp reversal has reignited debate over whether precious metals surged too far, too fast in recent months.
Cryptocurrencies fared even worse. Bitcoin fell below the closely watched $70,000 level, sliding to the mid-$60,000 range after Treasury Secretary Scott Bessent ruled out any government support for digital assets. The comments rattled investor confidence, fueling fears that the crypto market could face a prolonged downturn without a clear policy backstop.
Market strategists say volatility is likely to persist as investors navigate a rare convergence of risks, from disruptive AI innovation and heavy corporate spending to a cooling labor market and fragile confidence across speculative assets.
For now, Wall Street’s message is clear: the era of easy optimism is giving way to a far more uncertain and unforgiving market.
By The Midtown Times Staff, Published February 5, 2026
