In the early morning of February 5 Beijing time, the three major U.S. stock indexes showed a mixed trend: the S&P 500 Index and the Nasdaq Composite Index fell, while the Dow Jones Industrial Average rose slightly against the trend. Tech stocks became the main force of the decline, with overall weak performance, reflecting market concerns about the profitability of tech companies in a high-interest rate environment. As of the close, the Dow Jones Industrial Average rose 0.32% to 38,921.45 points; the Nasdaq Composite Index fell 1.87% to 15,123.76 points; the S&P 500 Index fell 0.79% to 5,014.28 points, and the tech sector became the main drag on the market.

In terms of individual stocks, chip giant AMD suffered a sharp drop, posting the largest single-day drop since its listing. As of the close on February 4 (U.S. Eastern Time), AMD’s stock price was $200.19, a single-day drop of $41.92, or as high as 17.31%, with a turnover rate of 6.65%, a trading volume of 107 million shares, a turnover of $22.105 billion, and a total market value shrinking to $325.918 billion. Looking back at the recent trend, AMD’s stock price has continued to decline in the past three months, falling from $233.54 on November 7, 2025 to the current level, with a cumulative drop of 14.28%. The sharp drop this time is mainly due to market concerns about the lower-than-expected sales of its new generation of chip products and the profit pressure brought by intensified industry competition.

Other tech stocks also weakened synchronously: Nvidia fell 3.21%, Microsoft fell 1.56%, Apple fell 0.98%, and Tesla fell 2.74%, all failing to get rid of the adjustment trend. Analysts pointed out that the Federal Reserve’s interest rate hike expectations have not subsided for a long time, coupled with the high valuation of the tech industry, investors’ profit-taking sentiment has heated up, leading to continued pressure on tech stocks. In addition, AMD’s sharp drop triggered a chain reaction in the chip sector, driving the correction of the entire tech industry chain. It is expected that U.S. tech stocks will maintain a volatile adjustment pattern in the short term, and attention should be paid to the risk of valuation correction.