Stock Market Today, Feb. 4: AMD Plunges Over 17% As Tech Fallout Continues

Market Overview - The S&P 500 fell 0.51% to 6,882.72, while the Nasdaq Composite slid 1.51% to 22,904.58 due to heavy tech selling. The Dow Jones Industrial Average rose 0.53% to 49,501.30 as investors shifted towards defensive and value stocks [1] Company Performance - Advanced Micro Devices (AMD) experienced a significant drop of 17.31% despite reporting solid earnings, closing at $200.19. The company's Q1 forecast did not meet high market expectations [2] - Software stocks, including Thomson Reuters, saw substantial declines, with Thomson Reuters down over 20% in the past five days. Conversely, biopharmaceutical company Amgen gained over 8% on positive Q4 results, contributing to the Dow's positive performance [3] Market Sentiment - The Nasdaq's decline reflects skepticism towards AI, highlighted by the steep sell-off of AMD. SanDisk also fell nearly 16%, erasing recent gains. The release of new AI tools by Anthropic is pressuring software and services companies, leading to a loss of around $300 billion in software and financial services stocks [4] - The tech upheaval is causing capital to rotate towards defensive and cyclical stocks, as evidenced by the Dow's gains. Disappointing jobs data from ADP, which reported only 22,000 private payroll additions in January against a forecast of 45,000, has added to investor uncertainty [5]