{"id":75113,"date":"2026-02-03T18:45:48","date_gmt":"2026-02-03T21:45:48","guid":{"rendered":"https:\/\/tech.einnews.com\/article\/889094661"},"modified":"2026-02-03T18:45:48","modified_gmt":"2026-02-03T21:45:48","slug":"wall-street-falls-as-ai-disruption-fears-hit-tech-stocks","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/02\/03\/wall-street-falls-as-ai-disruption-fears-hit-tech-stocks\/","title":{"rendered":"Wall Street falls as AI disruption fears hit tech stocks"},"content":{"rendered":"<div><img data-opt-id=758893364  fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" 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class=\"ff-og-image-inserted\"><\/div>\n<div id=\"ra-player\" data-skin=\"https:\/\/assets.readaloudwidget.com\/embed\/skins\/default\">\n<div class=\"ra-button\"> Listen to this article<\/div>\n<\/div>\n<p><audio id=\"ra-audio\" data-lang=\"en-US\" data-voice=\"free\" data-key=\"demo\"><\/audio><\/p>\n<p>(Reuters) \u2013 <a href=\"https:\/\/coloradobiz.com\/tag\/wall-street\/\" class=\"st_tag internal_tag \" rel=\"tag\" title=\"Posts tagged with Wall Street\">Wall Street<\/a> ended sharply lower on Tuesday as investors worried about AI creating more competition for software makers, keeping them on edge ahead of quarterly reports from Alphabet and Amazon later this week.<\/p>\n<div class=\"box shadow\">\n<div class=\"box-inner-block\"><i class=\"tieicon-boxicon\"><\/i> <\/p>\n<h5>In Brief:<\/h5>\n<ul>\n<li>Wall Street declined as investors worried AI could disrupt software and tech companies<\/li>\n<li>Major <a href=\"https:\/\/coloradobiz.com\/tag\/tech-stocks\/\" class=\"st_tag internal_tag \" rel=\"tag\" title=\"Posts tagged with tech stocks\">tech stocks<\/a> including <a href=\"https:\/\/coloradobiz.com\/tag\/nvidia\/\" class=\"st_tag internal_tag \" rel=\"tag\" title=\"Posts tagged with Nvidia\">Nvidia<\/a>, <a href=\"https:\/\/coloradobiz.com\/tag\/microsoft\/\" class=\"st_tag internal_tag \" rel=\"tag\" title=\"Posts tagged with Microsoft\">Microsoft<\/a>, Alphabet and Amazon fell ahead of earnings<\/li>\n<li>Software stocks such as Salesforce, Adobe and Intuit dropped on competition concerns<\/li>\n<li><a href=\"https:\/\/coloradobiz.com\/tag\/sp-500\/\" class=\"st_tag internal_tag \" rel=\"tag\" title=\"Posts tagged with S&amp;P 500\">S&amp;P 500<\/a>, <a href=\"https:\/\/coloradobiz.com\/tag\/nasdaq\/\" class=\"st_tag internal_tag \" rel=\"tag\" title=\"Posts tagged with Nasdaq\">Nasdaq<\/a> and Dow all closed lower amid earnings and economic uncertainty<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p>AI heavyweights Nvidia and Microsoft both fell. Alphabet dropped ahead of its report on Wednesday, while Amazon declined ahead of its Thursday report.<\/p>\n<p>Investors in recent months have become pickier about AI-related stocks, looking for companies generating measurable returns from their outsized investments in the new technology.<\/p>\n<p>Wall Street\u2019s attention on Tuesday turned to technology companies that could face steeper competition and lower margins as a result of AI. One catalyst driving those concerns was Anthropic\u2019s launch of a legal tool for its Claude AI chatbot.<\/p>\n<p>\u201cWe\u2019re looking at a lot of software names that are seen as companies that may well be disrupted when we start to see the advancement of artificial intelligence. We\u2019re seeing a lot of software companies across the spectrum get hit,\u201d said Art Hogan, chief market strategist at B. Riley Wealth.<\/p>\n<p>Salesforce, Adobe, Synopsys, Datadog, Atlassian and Intuit fell sharply.<\/p>\n<p>AI data firm Palantir bucked the trend, rallying after strong quarterly results late on Monday.<\/p>\n<p>The S&amp;P 500 software and services index fell for a fifth consecutive day.<\/p>\n<p>\u201cWe\u2019ve got an expensive market and expectations are really high. Many areas, especially around AI, are priced for perfection. That\u2019s just got us in a skittish environment,\u201d said John Campbell, senior portfolio manager, Allspring Global Investments.<\/p>\n<p>Healthcare stocks came under pressure after Wegovy maker Novo Nordisk warned that it expected a steep decline in annual sales. The company\u2019s U.S.-listed shares plummeted.<\/p>\n<p>Rival Eli Lilly fell, as did obesity drugmakers Viking Therapeutics and Structure Therapeutics.<\/p>\n<p>Walmart climbed to become the first brick-and-mortar retailer ever to hit $1 trillion in stock market value.<\/p>\n<p>Advanced Micro Devices fell ahead of its quarterly report after the bell.<\/p>\n<p>Walt Disney dipped after it named theme parks head Josh D\u2019Amaro as CEO, placing a longtime insider at the helm and ending succession uncertainty.<\/p>\n<p>PayPal slumped after it forecast 2026 profit below estimates.<\/p>\n<p>According to preliminary data, the S&amp;P 500 lost 59.04 points, or 0.85%, to end at 6,917.40 points, while the Nasdaq Composite lost 336.20 points, or 1.42%, to 23,255.91. The Dow Jones Industrial Average fell 170.98 points, or 0.35%, to 49,236.68.<\/p>\n<h3>Earnings Deluge<\/h3>\n<p>With one quarter of the S&amp;P 500 set to report quarterly results this week, analysts expect companies to have grown their earnings nearly 11% in the December quarter, up from an estimate of about 9% at the start of January, according to LSEG data.<\/p>\n<p>Pfizer fell despite posting fourth-quarter profit above estimates, while Merck rose after quarterly results.<br \/>PepsiCo shares gained after the company announced price cuts on core brands such as Lay\u2019s and Doritos.<\/p>\n<p>Meanwhile, legislation to end a U.S. government shutdown narrowly cleared a procedural hurdle in the House of Representatives, setting up a vote on final passage later in the day.<\/p>\n<p>The partial shutdown has postponed the release of key jobs data on Friday, along with the JOLTS report, originally scheduled for Tuesday.<\/p>\n<p>(Reporting by Pranav Kashyap and Twesha Dikshit in Bengaluru, and by Noel Randewich in San Francisco; Editing by Maju Samuel and Aurora Ellis)<\/p>\n<p><!-- post-single CPT Filter Start --><!-- post-single CPT Filter End -->F<\/p>\n<p><strong><a href=\"https:\/\/blockads.fivefilters.org\"> <\/a><\/strong> <a href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\"> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8230; could disrupt software and <span class=\"match\">tech<\/span> companies Major <span class=\"match\">tech<\/span> stocks including Nvidia, Microsoft &#8230; outsized investments in the new <span class=\"match\">technology<\/span>. Wall Street\u00e2\u0080\u0099s attention on &#8230; Tuesday turned to <span class=\"match\">technology<\/span> companies that could face steeper &#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-75113","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/75113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=75113"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/75113\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=75113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=75113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=75113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}