On January 23, 2026, the trading day started with declines across major U.S. stock futures. The S&P 500 futures dropped by 0.5%, while Nasdaq 100 futures fell by 0.7%. The Dow Jones Industrial Average futures dropped by 130 points, or about 0.3%. Investors seemed cautious, leading to a risk-off approach.
Alphabet, part of the well-known “Magnificent Seven” companies, announced strong intentions for increased spending in artificial intelligence. They projected capital expenditures could rise to $185 billion for 2026, but this news led to a 3% drop in their shares during premarket trading. In contrast, companies like Nvidia and Broadcom saw their stocks rise on the back of Alphabet’s plans, showing rising confidence in the AI sector.
Meanwhile, Qualcomm faced challenges with its stock falling 11% after it issued a weaker-than-expected forecast, citing a global memory shortage.
The cryptocurrency market also saw turmoil, with Bitcoin briefly dipping below $70,000, a critical support level. In precious metals, silver prices fell after a brief recovery, dropping nearly 16% after a 30% plunge the previous Friday.
Wall Street experienced a rocky session, largely driven by declines in tech stocks, specifically in the chip and software sectors. The S&P 500 and the Nasdaq Composite fell by 0.5% and 1.5%, respectively. However, the Dow managed to gain 260 points that day.
Sonali Basak, chief investment strategist at iCapital, highlighted that while recent sell-offs seemed intense, it might be an opportune moment to find value in the market. She noted that established software companies are likely to thrive in the long run.
Recent data from the Financial Times shows that concerns about AI disrupting jobs have risen steadily in 2026, with around 65% of Americans now worried about job security linked to AI advancements. These sentiments underscore the tension in the market, as businesses and investors must navigate the complexities brought on by rapidly evolving technology.
As we’ve seen in the past, similar patterns occurred after significant technological shifts; for instance, during the dot-com bubble of the late ’90s. Investors pulled back from tech stocks only for the market to recover when adjusted valuations reflected new realities. Understanding these historical contexts can offer better insight for today’s investing challenges.
While uncertainty prevails, the dynamic between innovation and caution continues to shape the market’s landscape.
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