Wall Street Slides as Tech Stocks Drop; Walmart Hits $1 Trillion Milestone

A tech-driven sell-off rattled markets on February 4, 2026, as the Nasdaq tumbled amid a rotation out of high-flying software and semiconductor names—yet Walmart’s historic leap into the $1 trillion club offered a striking counterpoint.

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1. A Day of Tech Exodus and Market Rotation

On February 4, 2026, markets were roiled by a pronounced rotation out of technology stocks. The Nasdaq composite fell between 1.4% and 1.5%, shedding approximately 336 to 351 points to close in the 22,900–23,255 range . The S&P 500 declined about 0.5%, marking its fifth drop in six sessions , while the Dow Jones Industrial Average bucked the trend with a gain of roughly 0.5%, rising around 260 points .

2. Under the Hood: Software and Semiconductor Weakness

Software stocks were among the hardest hit, with the Dow Jones U.S. Software Index sliding 3.5% to a nine-month low—even as Palantir jumped 6.9% on strong results and guidance . Semiconductor names also lagged, with the Philadelphia Semiconductor Index down about 2.1%, and NXP Semiconductors falling 4.5% despite beating earnings estimates . Advanced Micro Devices (AMD) suffered a steep 17.3% drop, despite delivering better-than-expected profits, as cautious forward guidance weighed on sentiment .