Pre-Market Report – Wednesday 4 February: US markets see rotation | Tech and software sold down

USS equities had a soggy Tuesday. Not disaster territory, but definitely a “this could’ve been worse” close after things looked uglier earlier. Tech was the problem child. Again. Software got smacked, dragging down the usual suspects — BDCs, private equity names and financial data plays all caught in the downdraft. The AI trade wasn’t spared either, with semis, Nvidia/OpenAI ecosystem stocks, retail favourites and crypto proxies all leaning the wrong way. Other soft spots: China tech, Payments, Rails, Entertainment. Basically, if it had momentum and a story, it got trimmed.This wasn’t a full risk-off panic Under the surface, money didn’t leave the market — it just changed seats. Cyclicals actually had a decent day, which is not what you’d expect if recession fear was the driver.Winners included: Small caps, Homebuilders (helped by the rumoured “Trump homes” affordability push), Industrial metals, Chemical Plus: Staples strong (yes, Walmart now a $1T stock — let that sink in)This looked more like rotation than “sell everything and hide.”SPI down 20 - Commodities rally - Gold up over 5%Want to invest with Marcus Today? Our MT20 portfolio is designed for investors seeking exposure to our strategy while we do the hard work for you. If you’re looking for personal financial advice, our friends at Clime Investment Management can help. Their team of licensed advisers operates across most states, offering tailored financial planning services.  Why not sign up for a free trial? Gain access to expert insights, research, and analysis to become a better investor.