2026.2.4 US Market Close | Nasdaq drops while Dow climbs on mixed corporate earnings

On February 4th, the US stock market saw a significant divergence among the major indices, driven by mixed corporate earnings reports. The tech-heavy Nasdaq fell sharply on a weak outlook from AMD, while the Dow Jones Industrial Average managed to close higher, buoyed by strong results from Eli Lilly. This highlighted a clear market divergence based on individual company performance. Major Indices - Dow Jones: +0.53% - The index was led higher by strength in healthcare stocks, including Eli Lilly. - Nasdaq: -1.5% - Concerns over AMD's future revenue forecast dampened investor sentiment across the tech sector. - S&P 500: -0.5% - Closed lower amid a mix of weakness in tech stocks and strength in value sectors like healthcare. Key Market Themes - A Stark Divide Between Tech and Value: Tech stocks, led by AMD, fell on concerns about future growth. In contrast, value stocks in sectors like healthcare and industrials, spearheaded by Eli Lilly, rose on the back of solid earnings, indicating a rotational trend in the market. - Future Guidance Outweighs Current Earnings: The market reacted more sensitively to forward-looking guidance than to current results. AMD plunged despite reporting a solid Q4, as its Q1 forecast fell short of expectations. - Geopolitical Risks Surrounding AMD Highlighted: The sharp drop in AMD's stock was also fueled by concerns over its supply chain reliance on a single manufacturer, TSMC, and potential impacts from stricter US export controls on China, which accounts for 22.4% of its total revenue. Key Movers - AMD (AMD): Plunged over 17% - Although Q4 earnings beat estimates, the company's forward revenue guidance disappointed investors, triggering a sell-off. - Eli Lilly (LLY): Surged more than 10% - The pharmaceutical giant posted Q4 earnings that surpassed market expectations and provided a strong full-year profit forecast, driven by high demand for its weight-loss drugs. - GE HealthCare (GEHC): Rose nearly 5% - The company reported solid earnings, contributing to the overall strength in the healthcare sector.