Good Morning Investors!!! Stocks had a split day, with tech taking the bruise while the Dow held up, as investors chewed on big AI spending plans and a fresh chip wobble. Alphabet’s capital expenditures (capex) headline put “how much are you spending?” right back in the spotlight, while Super Micro’s upbeat update kept the server story humming. Today, keep one eye on bond yields (bond interest rates) and the other on the calendar, with jobless claims, the Job Openings and Labor Turnover Survey (JOLTS), and Amazon earnings after the close. Also keep oil on your radar, since Middle East headlines can still move crude like a shopping cart with one wobbly wheel.
Key Market DriversAI jitters hit tech: Stocks split at Wednesday’s close. The Dow Jones Industrial Average rose 0.5%, but the S&P 500 fell 0.5% and the Nasdaq slid 1.5% as big tech took the hit. Advanced Micro Devices sank about 17% on a soft sales view, and other chip names fell too. Investors are asking if artificial intelligence (AI) winners are priced too high, and if new tools could nibble at old software sales. Money did not flee so much as it changed seats, with energy and materials taking in some of that moving capital. 
Sector Moves – 2-4-2026 – Some Winners Some Losers
Alphabet’s big spending plan grabs the spotlight: Alphabet’s results looked fine, but its capital expenditures (capex) plan grabbed the spotlight. The company said it could spend up to $185 billion this year, and the stock was down about 2% in premarket trade. Why does capex matter? Even great sales can look less great if cash is pouring into new data centers. The upside is that chip and chip-gear firms can get a lift, since someone has to sell the shovels. Amazon reports after the close, and it may face the same glare. Rates and data delays keep traders guessing: Bond moves stayed in the driver’s seat. The 10-year Treasury yield ended near 4.28%, and the 2-year yield slipped to about 3.56% as traders digested jobs and service data. The Federal Reserve is still expected to cut later this year, but not right away. The January jobs report is now set for Wednesday, Feb. 11 at 8:30 AM ET. The Job Openings and Labor Turnover Survey (JOLTS) is also due today. Europe is watching the European Central Bank (European central bank) too. Oil jumps on Iran headlines: West Texas Intermediate (WTI) settled near $65 a barrel and Brent settled near $69 after a sharp jump tied to U.S.-Iran tension. That price swing helped push energy stocks higher, even while tech was sliding. Markets are watching Friday’s talks in Oman and any flare-ups near the Strait of Hormuz, a key oil lane. For investors, oil matters because it can lift inflation, and that can keep rates higher for longer. A view of crude helps show the whipsaw. |
Thoughts from InvestorsGrow:
Tonight is “Amazon o’clock.” Beyond the headline number, listen for what Amazon says about demand and costs, plus Amazon Web Services (AWS) (cloud unit) growth. Also watch ads, since that can hint at how strong brands feel right now. If guidance feels upbeat, investors often get braver. If it feels cautious, the market may act like someone unplugged the Wi‑Fi.
On the data side, think of initial jobless claims as a weekly smoke alarm. If claims jump, it can hint that job cuts are picking up. JOLTS is the big “help wanted” board, and fewer openings can mean companies are less eager to hire. Cooler job data can pull bond yields down, which can help rate‑sensitive stocks. But if things look too weak, recession worry can steal the spotlight.
At 8:30 AM ET, initial jobless claims came in at 231,000 versus 212,000 expected, up from 209,000 last week, and the highest in about two months. Some of that jump may be tied to late-January snow and deep cold, which can lead to short-term layoffs and late paperwork. That is why this is more “yellow light” than “red siren” for now. The 4-week average rose to 212,250, and continuing claims (people still getting benefits) ticked up to 1.844 million, which can hint it is taking a bit longer to find a new job. After the print, Treasury yields eased, with the 10-year around 4.24%, which tends to help rate-sensitive areas like housing, utilities, and some tech. If claims stay high for a few weeks, though, it can start to pressure consumer spending and cyclical groups like travel and retail, so keep one eye on today’s job openings report for a second opinion.
Friday has two tone-setters: consumer sentiment and a Fed speech. Sentiment can move markets when it points to future spending or inflation fears. Fed speakers can move yields quickly because traders try to “translate” every line into rate bets. Heads up: the big monthly jobs report is now scheduled for WED Feb 11, 2026 at 8:30 AM ET, so Friday is not “jobs day” this time.
Crypto Infrastructure
Crypto infrastructure stocks are the picks-and-shovels of the crypto world: exchanges, miners, and the rails that move coins. The Bitwise Crypto Industry Innovators ETF (BITQ) bundles many of them into a single fund. Bitcoin dipped below $70,000 this week and is down about 15% over the past five days.
These firms live on volume and confidence. Policy headlines also matter because rules shape what platforms can sell and who can hold it. Some miners are also chasing artificial intelligence (AI) work, which can diversify revenue but adds big build costs.
Coinbase Global (COIN):
Coinbase runs a big U.S. crypto exchange and custody business. Its edge is scale and a focus on regulated markets. It reports fourth-quarter 2025 results Feb. 12 after close, with a webcast at 5:30 PM ET.
Block (XYZ):
Block connects Square merchants and Cash App users. Cash App lets users buy and sell bitcoin, so crypto swings can show up in app activity. Block reports fourth-quarter 2025 results Feb. 26 after close, with a call at 5:00 PM ET.
IREN Ltd (IREN):
Australia-based IREN started in bitcoin mining and now builds renewable-powered data centers for both mining and AI cloud. Its edge is owning power sites, which helps when the grid is tight. It has a $9.7 billion AI cloud contract with Microsoft that rolls out in phases through 2026.
InvestorsGrow Takeaway:
Watch the 10-year Treasury yield since higher yields can drain juice from risky trades, and crypto stocks are risky. Track spot bitcoin ETF flows (money in or out) plus exchange trading volume, since they hint at demand and fee income. Red flag: new lawsuits or rule changes that shrink what can be offered; if yields rise while bitcoin breaks $70k, expect more turbulence.
Super Micro Computer (SMCI)
Super Micro Computer builds servers and storage gear used in data centers. Think of it like the kitchen that turns fancy chips into a meal you can actually eat.
In the last 24 hours, it reported results and raised its full-year revenue outlook, pointing to strong demand tied to artificial intelligence (AI) (computers that learn from data). Shares rose more than 5% in after-hours trading (after the closing bell) after investors digested the stronger outlook.
Zooming out, SMCI is roughly flat over the past year and up roughly 900% over the past five years. Still, the 52-week range, about $27 to $66, shows this is a high-voltage stock where headlines can swing the price.
Why the fireworks? Companies are racing to add data-center capacity, and servers are the plumbing that links power to real work. Super Micro sells a modular, fast-ship approach, but it faces deep-pocket rivals like Dell and Hewlett Packard Enterprise that can fight hard on price.
The number investors will keep circling is the new full-year revenue floor: at least $40 billion, up from the prior $36 billion forecast. That matters because gross margin (profit left after making the product) can be slim, so smooth shipping and scale are everything. The next-quarter revenue guide, about $12.3 billion, is the quick check on whether demand is still humming.
Next up, watch delivery timing, margin direction, and any talk of tariffs or parts shortages. If revenue stays strong while margins hold steady, the story gets easier; if not, the cheer can fade fast.
InvestorsGrow Takeaway:
This stock is a simple test of the AI build-out. If companies keep buying servers, Super Micro’s sales story can keep rolling. What could go right is more big deals and fewer shipping snags; what could go wrong is a price war, delays, or cost spikes that squeeze profits. Watch revenue guidance and gross margin each quarter: if revenue rises while margins hold, the runway looks longer.
