US stock markets opened with mixed performance on Wednesday, February 4, 2026, as investors digested a significantly weaker-than-expected private-sector jobs report and continued a rotation out of technology shares. The Dow Jones Industrial Average added 173 points, or about 0.4%, while the S&P 500 edged up a mere 0.1%. In contrast, the Nasdaq Composite slipped 0.2%, reflecting ongoing pressure on growth-oriented and technology stocks.
The technology sector remained under intense pressure for a second consecutive session. A sharp sell-off was led by Advanced Micro Devices (AMD), whose stock plunged approximately 9% after its first-quarter forecast disappointed analysts. This outlook exacerbated broader concerns about slowing demand and margins within the semiconductor industry, dragging down other chipmakers like Broadcom and Micron Technology. Software stocks, including Salesforce, Oracle, and CrowdStrike, also extended losses.
The unease in tech was partly triggered by the launch of new automation tools from AI startup Anthropic on Tuesday. This event prompted investors to reassess the long-term growth prospects of traditional software and data-focused companies, fearing that rapid AI expansion could undermine their business models rather than strengthen them.
Adding to the cautious market tone was a starkly weak employment report from ADP. The payroll firm's data revealed that private employers added just 22,000 jobs in January 2026. This figure was less than half the Dow Jones economist forecast of 45,000 and also below December's downwardly revised gain of 37,000. The report highlighted that without a strong increase of 74,000 jobs in the education and health services sector, overall job growth would have been negative.
The data suggests the US labor market is stuck in a "low-hire, low-fire" environment, where companies are hesitant to both expand payrolls and lay off workers due to economic uncertainty. Job gains were heavily concentrated in service industries, while professional and business services shed 57,000 jobs and manufacturing declined by 8,000.
This ADP report arrives amid data uncertainty, as the official Bureau of Labor Statistics nonfarm payrolls report was delayed due to a recent partial government shutdown. Federal Reserve Chair Jerome Powell has recently indicated that labor conditions may be stabilizing after a period of softening, with the central bank's benchmark interest rate held in the 3.50%–3.75% range.
