Nasdaq Falls to Two-Month Low as U.S. Stocks Drop sharply; Closing at 16,234.1 (2/5/26)

U.S. stocks closed sharply lower on February 5, 2026, as investor sentiment shifted from cautious to bearish. The Nasdaq Composite fell to its lowest level in two months, closing at 16,234.1 (-2.8%) after a string of weak economic indicators and rising inflation concerns. The S&P 500 closed at 4,932.5 (-1.5%), while the Dow Jones Industrial Average dropped 269.3 points to 39,250.6 (-1.1%). Supporting context: The Federal Reserve is expected to consider a rate hike at its upcoming March meeting amid continued upward pressure on inflation.