Stock market today: Bonds and Bitcoin sell off on AI, economic fears

Market Overview - Financial markets experienced a significant decline on February 5, with the S&P 500 down more than 1% to around 6,810, the Dow Jones Industrial Average down 1% near 49,025, and the Nasdaq Composite losing 1.2% to trade near 22,636 [1] Company Impact - Stocks have been negatively affected by mixed signals from earnings reports regarding the influence of AI on corporate profits. Alphabet, Google's parent company, announced plans to invest up to $185 billion in capital investments for new technology, yet its stock fell over 3% on February 5 [2] Economic Indicators - Recent economic data indicated a more pronounced weakening in the labor market than analysts anticipated, with planned job cuts reaching the highest level since 2009 and a decline in job openings [3] Cryptocurrency Market - Bitcoin dropped to its lowest level since 2024, following comments from investor Michael Burry, who warned that the cryptocurrency's declining price could trigger a "death spiral" leading to significant value loss. Burry suggested that some investors might need to liquidate other assets to cover losses [4] - On February 4, U.S. Treasury Secretary Scott Bessent stated that the government would not purchase bitcoin or other cryptocurrencies to support their price levels. Bitcoin was trading around $67,389, down 8.5%, while Ethereum fell over 7% to approximately $1,966. Gold also decreased by 2% to about $4,851 per ounce [5]