Stocks Plunge on Tech Weakness and AI Fears

Market Overview - Overseas stock markets showed mixed results, with the Euro Stoxx 50 down by -0.40%, China's Shanghai Composite up by +0.05%, and Japan's Nikkei Stock 225 down by -0.02% [1] - The S&P 500 Index closed down -1.57%, the Dow Jones Industrial Average down -1.34%, and the Nasdaq 100 Index down -2.04% [6] Earnings Reports - Over two-thirds of S&P 500 companies have reported earnings, with 76% beating expectations. S&P earnings growth is projected to increase by +8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth [2] - Excluding the Magnificent Seven technology stocks, Q4 earnings are expected to rise by +4.6% [2] - Cisco Systems fell more than -12% after indicating that higher memory-chip prices would impact profitability [5][14] - ICON Plc closed down more than -39% due to an internal investigation into accounting practices, suggesting revenue may have been overstated by less than 2% [13] - Tyler Technologies reported Q4 total revenue of $575.2 million, below the consensus of $590.8 million, leading to a decline of more than -15% [14] Sector Performance - The Magnificent Seven technology stocks experienced a sell-off, with Apple down more than -5% and Amazon, Meta, and Tesla down more than -2% [10] - Trucking and logistics companies faced significant declines amid concerns over AI disruption, with Landstar Systems down more than -15% and CH Robinson down more than -14% [11] - Cryptocurrency-exposed stocks fell after Bitcoin declined by more than -3%, with Coinbase down more than -7% [12] Economic Indicators - US January existing home sales fell -8.4% month-over-month to a 16-month low of 3.91 million, below expectations of 4.5 million [3] - Lower bond yields supported stocks, with the 10-year T-note yield falling to a 2.25-month low of 4.10% [4][7] - UK Q4 GDP rose by +0.1% quarter-over-quarter and +1.0% year-over-year, which was weaker than expected [8]