Stock Market Summary – February 03, 2026

Nvidia shares fell 3.4% due to rumors of tensions with OpenAI. However, Nvidia CEO Jensen Huang reaffirmed his intentions to invest in OpenAI, dismissing any conflict. Meanwhile, Teradyne shares surged more than 20% following its Q4 report, exceeding expectations, and Palantir stock increased by 11%.

U.S. military tensions with Iran sent U.S. crude oil prices up by 1%. The Dow briefly hit a record high, but tech stocks like Nvidia are down. Jim Cramer encouraged investors to buy Alphabet stock ahead of its earnings report but was more cautious regarding Amazon.

Shares in Lennar and Taylor Morrison Home rose amid reports of their involvement in a “Trump Homes” plan to alleviate the U.S. housing affordability crisis, while Cisco shares finally surpassed their dotcom bubble high. The company, now more software and services-oriented, benefited from the AI boom, despite some investors expressing concerns about its higher valuation.

Sandisk shares rose 4% while PayPal dropped 15% after announcing that CEO Alex Chriss will be replaced by HP CEO Enrique Lores. PayPal reported lower than expected profits and revenue.

Lennar shares increased upon the reveal of plans for a “Trump Homes” plan for affordable housing. The homebuilder’s stocks are up 9% for 2026.

Jim Cramer’s Charitable Trust bought more shares of CrowdStrike at roughly $417 each, focusing on cybersecurity companies with a lower risk of AI disruption.

Overall, the market is experiencing a division with consumer-goods stocks and AI leaders like Nvidia and Alphabet seeing growth, while others like Amazon and PayPal are struggling. The geopolitical tension with Iran is also influencing the market, particularly in crude oil prices. The upcoming earnings reports could further shape the market trends.