U.S. Indexes Rested Amid Valuation Worries and Mi

Barry Adams
04 Feb, 2026
New York City

U.S. stocks lacked direction in early trading in New York after benchmark indexes registered sharp losses in the previous session. 

The S&P 500 Index decreased 0.1%, and the tech-focused Nasdaq Composite edged up 0.1% as investors reviewed the latest quarterly results. 

Chipmakers and AI-linked stocks declined more than 2% in Tuesday's trading, and software services providers faced headwinds amid worries that elevated infrastructure investment may dampen future sales growth. 

Nvidia, Broadcom, Qualcomm, AMD, and Micron Technology declined between 2% and 4%, and ServiceNow, Salesforce, and Intuit dropped between 7% and 11%. 

Benchmark indexes have surged more than 100% over the last three years, and investors are worried that valuations may be stretched too far and tech stocks are likely to face higher volatility in 2026.

On the earnings front, Alphabet Inc. is scheduled to release earnings results on Wednesday and Amazon on Thursday. 

Investors are awaiting the release of nonfarm payrolls data on Friday, and January employment is likely to rise 40,000 following the preliminary increase of 50,000 in December 2025. 

 

U.S. Movers

Chipotle Mexican Grill Inc. dropped 6.6% to $36.60 after the fast-casual restaurant company reported weaker-than-expected quarterly results. 

Same-store sales in the fourth quarter fell 2.5% and dropped 1.7% for the full year. 

Revenue in the quarter rose 4.9% to $2.98 billion, net income decreased to $330.9 million from $331.8 million, and diluted earnings per share increased to 25 cents from 24 cents a year ago.

Traffic to restaurants declined 3.2% in the latest quarter, denting investor enthusiasm and dragging down the company's stock by more than 35%. 

The company estimated flat same-store sales growth in 2026.

Advanced Micro Devices dropped 7% to $224.99 despite the advanced chipmaker reporting strong fourth-quarter results. 

Revenue increased 34% to a record high of $10.3 billion from $7.7 billion, net income soared to $1.5 billion from $482 million, and diluted earnings per share increased to 92 cents from 29 cents a year ago. 

The company estimated first-quarter revenue at $9.8 billion, with a band of $300 million; however, some analysts were expecting the company to offer stronger guidance as core customers continue to purchase chips necessary to power AI models. 

Match Group rose 6% to $30.64 after the dating app operator reported sharply higher than expected fourth-quarter results. 

The company guided full-year cash flow in the current year to range between $1.08 billion and $1.135 billion. 

Match Group reported fourth-quarter revenue of $878 million and diluted earnings per share of 83 cents. 

Take-Two Interactive Software jumped 4.4% to $221.0 after the video game publisher revised its 2026 net booking estimate to a new range between $6.65 and $6.7 billion.