Yahoo Finance·2026-02-04 16:07Market Overview - US stocks exhibited mixed performance as Wall Street evaluated a new wave of earnings while awaiting Alphabet's results, with a notable shift from tech stocks to blue-chip names [1] - The Dow Jones Industrial Average rose approximately 0.6%, while the S&P 500 decreased by 0.3%, and the Nasdaq Composite fell over 1% [1] AI Impact on Stocks - Wall Street is grappling with fears of AI disruption, leading to a significant sell-off in software stocks that affected global markets, including Europe and Asia [2] - The broader pessimism surrounding AI has prompted a rotation from high-profile tech stocks to value stocks, negatively impacting companies like Nvidia and Microsoft [2] Upcoming Earnings Reports - Attention is focused on the upcoming earnings results from Alphabet and Arm Holdings, particularly regarding AI demand, followed by Amazon's quarterly report [3] Earnings Expectations - JPMorgan indicated that even strong earnings reports may not suffice to reassure the market unless companies can demonstrate that AI will act as a tailwind rather than a headwind [4] - Advanced Micro Devices experienced a sharp decline in shares due to a weak sales outlook, raising concerns about its competitiveness against Nvidia in the AI sector [4] Labor Market Insights - An ADP report revealed that employers added only 22,000 jobs in January, significantly below the expected 45,000, highlighting potential weaknesses in the labor market [5] Pharmaceutical Sector Performance - Eli Lilly's stock surged following a positive profit forecast for 2026, driven by increased demand for its weight-loss drugs [6] - Conversely, shares of Novo Nordisk plummeted after the company projected a significant decline in sales, surprising investors [6]