S&P 500 and Nasdaq Drop as AI Fears Drive Tech Sell-Off Pre-GOOG Earnings (02-04-2026)

U.S. stocks declined sharply on Wednesday as investors awaited Alphabet (GOOG, GOOGL) earnings amid renewed AI-related selloffs in software and tech. The S&P 500 (^GSPC) fell over 1%, and the Nasdaq Composite (^IXIC) over 2%, while the Dow Jones Industrial Average (^DJI) rose slightly on rotation into value and blue-chip names. AI-driven weakness spread globally, sending Nvidia (NVDA) down over 4%, Google nearly 3%, Amazon (AMZN) over 2%, and Tesla (TSLA) more than 5%. JPMorgan said better-than-expected earnings are no longer propping the market unless companies show AI will be a tailwind. AMD shares dropped after a cautious sales outlook. ADP private payrolls for January showed gains of 22,000 versus 45,000 expected, with the official nonfarm payrolls report pushed to next Wednesday due to a prior partial government shutdown. Gold (GC=F) rose to briefly test $5,000 but retreated, and Bitcoin (BTC-USD) near $72,000. Pharma fortunes split: Eli Lilly (LLY) rose on upbeat 2026 guidance from weight-loss drugs, while Novo Nordisk (NVO, NOVO-B.CO) shares fell on a forecast of sharply lower sales for Ozempic and Wegovy.