US stocks open mixed: Dow up around 0.4%, Nasdaq slips 0.2%

• Technology stocks extended losses for a second session, with chipmakers like Broadcom and Micron declining alongside software stocks including Salesforce, Oracle, and CrowdStrike amid AI disruption concerns
• ADP employment report showed just 22,000 private-sector jobs added in January versus 45,000 expected, with professional and business services shedding 57,000 positions while education and health services added 74,000
• Investors await earnings from Alphabet (Wednesday) and Amazon (Thursday) for direction, while the official nonfarm payrolls report was delayed due to the recent government shutdown that ended Tuesday

Market Summary: US Stocks Mixed as Tech Rotation Continues

Market Performance

US stocks opened mixed on Wednesday, February 4, 2026, with the Dow Jones Industrial Average gaining 0.4% (up 173 points), while the Nasdaq Composite slipped 0.2%. The S&P 500 edged up 0.1% in midday trading, reflecting continued investor rotation away from technology stocks.

Technology Sector Under Pressure

The technology sector faced significant weakness for a second consecutive session, driven by concerns that artificial intelligence may disrupt rather than enhance traditional software business models. This anxiety intensified following AI startup Anthropic's Tuesday launch of new automation tools, prompting reassessment of growth prospects for software and professional services companies.

Major tech stocks declined, including semiconductor manufacturers Broadcom and Micron Technology, alongside software companies Salesforce, Oracle, and CrowdStrike. Investors await key earnings reports from Alphabet (Wednesday after close) and Amazon (Thursday).

Weak Employment Data

ADP's January private-sector employment report showed employers added only 22,000 jobs, significantly below the 45,000 forecast and December's revised 37,000 gain. Without education and health services (which added 74,000 jobs), overall employment would have been negative.

Job losses occurred in professional and business services (-57,000), manufacturing (-8,000), and other services (-13,000). Mid-sized firms (50-499 employees) drove all net job gains, while large employers cut 18,000 positions.

Market Implications

Economists characterize the current environment as "low-hire, low-fire," indicating corporate uncertainty about economic outlook. The official nonfarm payrolls report was delayed due to the recent government shutdown, which ended Tuesday after President Trump signed a funding bill.