Here’s what’s happening in the stock market today:
The U.S. stock market is extending losses today amid ongoing tech sector weakness driven by AI spending concerns and softer-than-expected labor market data. 📉🔧 Major indexes like the S&P 500 and Nasdaq are down around 0.9-1%, while the Dow dips about 0.5-1%, reflecting broader investor caution as trading continues.
Major Indices 📊
S&P 500 down ~0.9-1%, pressured by tech sell-off despite recent monthly gains.
Nasdaq Composite falls ~1%, marking a third straight day of declines led by semiconductors and AI names.
Dow Jones drops ~0.5-1%, with fewer tech components offering some relative resilience.
Market Movers 🚀
Tech giants like Alphabet slide on plans for up to $185B in AI capex this year, fueling spending worries.
Qualcomm tumbles after a weak forecast amid chip sector volatility.
Nio surges ~6% premarket on Q4 profit outlook; Tapestry up 5% on raised guidance.
Bitcoin-related plays like MicroStrategy drop over 5% as crypto falls below $70K.
Key Events 🗞️
Weak labor data dominates: Job openings hit lowest since 2020, unemployment claims rose unexpectedly, and January layoff announcements reached highest since 2009.
Investors eye Amazon earnings after close, focusing on AWS growth amid AI hype.
Treasury yields and rate cut bets in focus as Fed policy path hinges on jobs trends.
Sentiment 👀
Cautious tone prevails with tech rotation and labor fragility offsetting AI optimism; volume subdued ahead of more data. 🐻⚖️
TRADE OF THE DAY:
SNDK
Name: Sandisk Corp
Symbol: SNDK
Current Price: Approximately $609.00
Trade
Sell to Open: 1 SNDK Feb 20, 2026 465/460 Put Vertical
Total Credit Received: $75.00
Credit per Contract: $75.00 (1 contract = 100 shares)
Direction: Bullish (expects SNDK to stay above break-even level)
Probability of Profit (PoP): 83.84%
Potential ROI:
Max Risk (Loss): $425.00
ROI: ($75 ÷ $425) × 100 ≈ 17.6%
Trade Explained in Simple English:
You’re selling a bullish put credit spread by selling the 465 put and buying the 460 put, both expiring on February 20, 2026. You collect $75 upfront when entering the trade. If SNDK closes above $464.25 at expiration, both options expire worthless and you keep the full credit. Your potential profit is capped at $75, while your maximum loss is limited to $425 if the stock falls below $460.
Wall Street Highlights:
News Beyond the Numbers
Alphabet plans to invest up to $185 billion in AI-related capital expenditures this year, raising concerns among investors about escalating tech spending. Read more.
Challenger, Gray & Christmas reported January saw the highest number of planned corporate layoffs since 2009 amid labor market weakness. Read more.
Peloton reported quarterly losses again as connected-fitness subscriptions fell to a more than four-year low. Read more.
Amazon is set to release its fourth-quarter earnings after the closing bell, with investors focusing on growth in its cloud computing business. Read more.
Bristol-Myers Squibb is among major companies like KKR, Cummins, and Centene reporting earnings before the market opens today. Read more
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