Stocks Diverge: Tech Rotation Weighs on Market - S&P 500 Down, NASDAQ Declines

[Para 1: The Lead] U.S. stocks moved lower in early trading on February 3, 2026, as investors rotated out of technology stocks. The S&P 500 index fell 1.2% to 4,250, while the NASDAQ Composite dropped 1.8% to 13,500. The rotation, driven by investors seeking more stable sectors, impacted tech-heavy indexes disproportionately. [Para 2-3: Supporting details & Context] The rotation was evident as energy and healthcare sectors outperformed, with the S&P 500 Energy sector up 2.5% and Healthcare up 1.1%. Tech stocks, represented by the NASDAQ-100, saw a significant decline, with key components like AMD (AMD) and Microsoft (MSFT) posting losses. Analysts attribute the shift to investors' concerns over the valuation of tech stocks and a desire for more defensive sectors amidst economic uncertainty.