Broad Sell-Off on Feb 5: S&P, Dow, Nasdaq Drop as AI Costs and Economic Fears Drive Bitcoin, Treasuries Lower

U.S. equities fell sharply on February 5 as economic weakness and the escalating costs of AI adoption pressured sentiment. The S&P 500 was down 1.0% to 6,810, the Dow Jones Industrial Average 1.0% to 49,025, and the Nasdaq Composite 1.2% to 22,636, hitting earlier session lows. Supporting details: Alphabet plans up to $185 billion in capital investment for new AI technology, contributing to a 3% drop in its shares late morning on February 5. Labor market data showed planned job cuts at their highest since 2009 and a decline in job openings. Meanwhile, Bitcoin plunged 8.5% to around $67,389 amid warnings of a potential "death spiral" and the U.S. government’s stated intention not to support cryptocurrencies. Ethereum fell 7% to $1,966, and gold was down 2% to $4,851 per ounce. The 10-year U.S. Treasury yield slipped 7 basis points to 4.206% as investors sold Treasuries.