Here’s what’s happening in the stock market today:
Major Indices Performance 📊
Dow Jones futures tumbled around 616 points or 1.2-1.3%, signaling a weak open after the extended weekend.
S&P 500 futures poised to shed 1.4%, extending recent volatility in major indices.
Nasdaq futures declined more than 1.5%, pressured by tech giants like Nvidia, Alphabet, and Amazon in premarket trading.
Market Movers 🚀
Gainers: D.R. Horton shares rose 2.9% premarket after beating Q1 earnings expectations with $2.03 per share and $6.89 billion in revenue.
Biotech names like Day One Biopharmaceuticals (up 26.73%) and Zenas Biopharma (up 23%) led gainers in recent trading.
Losers/Decliners: Major tech stocks including Nvidia, Apple, and others faced premarket pressure amid broader sell-off.
Names like NovaBay Pharmaceuticals dropped 29.8%, with Alphatec Holdings down 22.3%.
Key Events Driving the Market 🗞️
President Trump's tariff threats, including over Greenland and Europe, sparked a global sell-off, with Supreme Court decisions possibly impacting tariff revenue today.
Treasury yields surged, with the 10-year note hitting 4.265%-4.29%, its highest since September, adding pressure on stocks.
The dollar weakened (index around 98.5, down 0.6-0.9%), while gold hit record highs above $4,720/oz as a safe-haven amid uncertainty.
Investor Sentiment 👀
Traders show caution with elevated volatility (VIX up), focusing on trade war risks, rising yields, and bond sell-offs over optimism from prior gains. Markets blend fear of policy shocks with safety bids in gold, leading to subdued sentiment ahead of U.S. open. 🐻⚠️
TRADE OF THE DAY:
NBIS
Name: Nebius Group N.V. — AI infrastructure & cloud compute provider
Symbol: NBIS
Current Price: ~$102.19 (latest market quote)
Trade
Sell to Open: 1 NBIS Feb 6, 2026 82/77 Put Vertical
Total Credit Received: $53.00
Credit per Contract: $53.00 (1 contract = 100 shares)
Direction: Bullish (expects NBIS to stay above break-even)
Probability of Profit (PoP): 84.52% (as provided)
Potential ROI:
Max Risk (Loss): $447.00 (provided)
ROI: ($53 ÷ $447) × 100 ≈ 11.9%
Trade Explained in Simple English:
You sold one put vertical spread by selling the 82 strike put and buying the 77 strike put expiring on February 6, 2026. You received $53 upfront. This trade will profit if NBIS stays above about $81.07 at expiration (your break-even). Your maximum loss is capped at $447 if NBIS falls below 77, and your maximum reward is the credit received. This is a bullish strategy, expecting the stock to remain above your break-even through expiration.
Wall Street Highlights:
News Beyond the Numbers
Berkshire Hathaway's cash reserves reached a record $382 billion, signaling Warren Buffett's cautious approach amid high market valuations and upcoming leadership changes. Read more.
Amazon signed a $38 billion deal with OpenAI to provide massive compute power through AWS for AI model training and operations. Read more.
Activist investor Elliott Management invested in hypersonic-flight company Stratolaunch, gaining board representation to accelerate its defense and space capabilities. Read more.
Stratolaunch completed a major capital raise with Elliott Investment Management to expand hypersonic production and flight testing as part of the U.S. defense industrial base. Read more.
President Trump's escalated tariff threats over Greenland's sale have heightened geopolitical tensions, with potential Supreme Court rulings impacting $200 billion in revenue. Read more.
Disclaimer: The content provided by OptionPicks is for informational and educational purposes only and should not be construed as investment, financial, legal, or tax advice. We are not registered as a broker-dealer, investment adviser, or financial advisor with the SEC, FINRA, or any other regulatory authority. Options trading involves substantial risk and is not suitable for every investor. Past performance is not indicative of future results, and no representation is being made that any subscriber will or is likely to achieve profits or incur losses similar to those mentioned. You should consult with a licensed financial professional before making any investment decisions.
