US stocks slid sharply on Thursday as technology shares extended losses and fresh labor data raised concerns about economic momentum. The US stock market sell-off accelerated through mid-morning trading as investors reduced exposure to growth stocks.

The S&P 500 fell about 1.3%, while the NASDAQ 100 dropped approximately 1.6% in New York trading. Bond prices rose, crypto assets fell, and commodities weakened as investors shifted toward defensive positioning.

US Stock Market Sell-Off Deepens as Technology Stocks Retreat

Technology shares led declines for a third straight session. Alphabet dropped more than 4% after investors reacted to its aggressive capital spending plans tied to artificial intelligence expansion.

The selloff spread across major growth names. The Bloomberg Magnificent Seven index slid nearly 3%, while software and semiconductor stocks also weakened. A technology software exchange-traded fund fell more than 2%.

Volatility climbed alongside falling equities. The Cboe Volatility Index hovered near 23, signaling increased demand for downside protection. Consequently, market sentiment shifted away from risk-heavy positioning.

Investors have recently questioned whether large artificial intelligence investments will generate near-term returns. This skepticism has triggered rotation toward sectors tied to traditional economic activity. Still, analysts noted selective opportunities inside the pullback.

Labor Market Data Intensifies Slowdown Concerns

Fresh employment figures added pressure to equities. Companies announced the highest January job cuts since 2009, signaling strain in parts of the labor market.

Meanwhile, weekly unemployment claims rose more than expected. Initial claims increased by 22,000 to 231,000, reflecting softer hiring conditions. The data revived fears that growth may slow in the coming months.

Treasury bonds rallied as investors reassessed economic risk. The 10-year yield slipped to about 4.23%, while the 2-year yield fell toward 3.49%. Lower yields often signal expectations of weaker activity.

Crypto markets mirrored the defensive tone. Bitcoin dropped below $70,000, and Ether slid nearly 5%. In addition, gold and oil prices fell as investors reduced exposure to volatile assets.

Global Markets Weaken as Risk-Off Sentiment Spreads

European equities declined alongside Wall Street. The Stoxx Europe 600 index fell about 1.2% as global investors responded to the technology-driven pullback.

Currency markets showed mixed movement. The British pound weakened, while the dollar and euro traded near unchanged levels. Consequently, cross-asset positioning reflected broad caution.

Commodities also sold off alongside equities. Crude slid more than 2%, gold fell about 2.5%, and silver sank sharply. The pullback matched the broader move out of higher-risk positions.

Corporate Highlights

• Qualcomm fell by over 9% after issuing a weak revenue forecast.

• Arm Holdings reported results hurt by memory chip shortages.

• Elf Beauty advanced after raising adjusted EBITDA guidance.

• Estée Lauder dropped after an unconvincing profit outlook.

• Amazon is prepared to report earnings after the bell.

• Peloton issued a weaker-than-expected revenue forecast. 

• ConocoPhillips projected lower crude production this year.

• Ralph Lauren reported slowing sales growth.

• Bristol Myers Squibb forecast stronger 2026 profit.

• Cigna set earnings guidance below expectations.

• Hershey issued an upbeat long-term outlook.

• Bank of America revamped its credit card strategy.

• KKR reported lower quarterly profit.

• Shell posted weaker fourth-quarter earnings.

• Sony raised its full-year profit outlook.

Markets now turn toward upcoming earnings and the next US jobs report. Investors will assess whether technology spending and labor softness continue to shape risk appetite in the near term.

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