Wall Street retreats as Dow pulls back from 50,000 ahead of jobs and inflation reports

Indices

The major American indices are exhibiting divergent movements as of February 9, 2026. The S&P 500 (SPY) is trading at $692.15, registering a modest gain of +0.22%. This upward movement in the S&P 500 suggests a cautiously optimistic tone driven by select sector strength, notably technology. The NASDAQ (QQQ) is currently at $611.63, up +0.33%, reflecting bullish sentiment in tech-heavy equities. Conversely, the Dow Jones Industrial Average (DIA) trades at $500.15, down -0.18%, indicating relative underperformance in more traditional sectors.

For traders, the S&P 500 and NASDAQ present potential buy signals—especially in technology and AI-driven stocks—while the Dow’s minor decline suggests a wait-and-see approach may be prudent until clearer direction emerges from upcoming economic data.

Stocks

Several stocks are commanding market attention. NVIDIA Corporation (NVDA) leads activity with 231.35M and a price surge to $185.41 (+7.87%), underscoring robust demand for AI and semiconductor plays. Amazon.com Inc (AMZN) sees heavy volume at 179.21M, though its price has fallen to $210.32 (-5.55%), indicating profit-taking or concerns about future growth. Microsoft Corporation (MSFT) is also trading actively at $401.14 (+1.90%).

Among top gainers, Super Micro Computer (SMCI) is up 11.44%, while Teradyne (TER) climbs 10.69%, both benefiting from positive sentiment toward hardware and automation. On the downside, Molina Healthcare (MOH) plummets -25.51%, signaling sector-specific risk. These moves provide tactical trading opportunities: momentum strategies in tech, and caution or contrarian approaches in the lagging sectors.

Economic News

Recent economic developments are shaping sentiment and index performance. Meta Platforms (META) exceeded expectations in its Q4 report, posting earnings per share of $8.88 on revenue of $59.89B, and announced increased AI investments—this strengthens investor confidence in tech, supporting broader market gains. Meanwhile, recent comments by the Federal Reserve Chair, combined with softer labor market data, have reinforced expectations for lower interest rates, stimulating a positive response in risk assets.

However, the announcement of new tariffs by President Donald Trump on January 20, 2026, triggered the worst single-day decline in the S&P 500 since October 2025, highlighting the market’s sensitivity to trade policy risks.

Economic Events

Today’s key events include a Federal Reserve Chair speech that may offer further clues on the trajectory of monetary policy, and the release of the Consumer Price Index (CPI) for January, which will provide fresh insights into inflation pressures. These events are likely to introduce volatility across indices, with outsized impacts on rate-sensitive and growth sectors.

Tomorrow, the market will digest the Retail Sales Report for January and high-profile earnings from Apple Inc. (AAPL) and Tesla Inc. (TSLA), which are poised to influence broader equity sentiment and sector rotation.

Market Sentiment

The positive momentum in the S&P 500 and NASDAQ, coupled with robust earnings and forward-looking investments in artificial intelligence, indicates a preference for growth assets. However, the mixed performance of the Dow Jones and recent volatility from policy actions and economic data inject a note of caution, suggesting that investors remain alert to macro risks and sector rotations.

Recommendations

Given today’s market landscape, traders should consider maintaining or selectively adding to positions in technology and AI-driven stocks, as both the S&P 500 and NASDAQ are showing resilience and potential buy signals. Implementing prudent stop-losses is advised, especially in sectors exhibiting volatility or headline risk, such as healthcare and traditional industries represented in the Dow Jones. Monitoring upcoming economic data and central bank communications remains crucial for adjusting positions and capitalizing on directional moves as new information emerges.

Please note that the analysis is for informational purposes only and does not constitute financial advice. Users should conduct their own research.