Weekly Stock Market Update | Dow, S&P 500, NASDAQ News – February 08, 2026

This week saw a significant rebound in the stock market as technology stocks recovered from a heavy sell-off, and cryptocurrency also improved following a major decrease. The Dow Jones Industrial Average soared, moving up by 1,206.95 points or 2.47%, closing at 50,115.67, signifying the first time the Dow reached over 50,000. The S&P 500 rose by 1.97% to hit 6,932.30, the Nasdaq Composite rose 2.18% to 23,031.21. This meant the S&P 500 was back in positive territory for 2026, but it posted a 0.1% decline for the week, while the Nasdaq fell 1.8%. The Dow rose 2.5% week to date.

Big winners this week included Nvidia, which grew by almost 8%, and Broadcom, which increased by 7%. Oracle and Palantir Technologies also saw a recovery with each raising 4%. With a surge in shares for industrials and financials sectors, Caterpillar and Goldman Sachs performed notably well, experiencing a rise of 7% and 4% respectively. The small-cap stocks Russell 2000 index rallied 3.6%.

The tech sell-off was rooted in worries about AI disruption fears for established software players. Alphabet caused concern for some investors by projecting a steep increase in AI spending, planning for capital expenditures up to $185 billion for 2026.

The labor market showed more signs of frailty; the initial jobless claims for the week that ended January 31st were higher than expected and job openings in December sank to their lowest level since September 2020.

With the outlook on interest rates and inflation, key data will be released next week which could help alleviate fears after recent panic selling. The upcoming January jobs report could forecast an increase in unemployment and job cuts, which may lead to the Federal Reserve’s decision on an interest rate cut in March or April.

However, recent market sell-offs in the tech sector and cryptocurrency markets might present an opportunity for attractively valued parts of the market, leading to a rotation in stock investment.

This week saw mixed performance in the stock market. Despite a late-week rally led by tech stocks, the Nasdaq and S&P 500 posted declines overall, losing 1.8% and 0.1% respectively. Chipmakers Nvidia and Broadcom led the tech recovery on Friday, gaining 7.8% and 7.2%. The tech rebound was not enough to offset the losses incurred earlier in the week.

Conversely, the Dow Index, which experienced a rotation of investments away from software and tech towards financials and industrials, benefited. The Dow rose more than 1,200 points, hitting an all-time high close of 50,115, and finishing up by 2.5% for the week. The largest winners were companies like Home Depot, Microsoft, and Honeywell.

However, not all sectors performed well. Software stocks experienced a significant decline, sparked by investor concern that AI advancements may challenge the market share of traditional enterprise software-as-a-service (SaaS) companies.

Looking at specific stocks, Alphabet (Google’s parent company) announced significant capital expenditure increases and, despite a 0.5% drop on Thursday, outperformed the Nasdaq’s 1.5% loss. Conversely, Amazon experienced a 5.5% tumble after its quarterly results fell short of management’s profit expectations. Berkshire Hathaway has performed well this week amid a sinking tech sector.

Significant positions were also trimmed from tech stocks, to secure double-digit gains on stocks such as Home Depot and Honeywell. Other stocks that saw profits booked include DuPont, with a 6% rise this week and an overall 16% this year, and restaurant stock Texas Roadhouse, which has gained 15% year to date.

Overall, while tech stocks took a hit, sectors such as financials and industrials saw growth, suggesting a shift in market focus. The week ahead will determine if the tech sector’s Friday rally can indeed continue.