Tech Weakness Drags Down Nasdaq as Precious Metals Slips Recovery Into Focus

Technology stocks couldn’t maintain their momentum, leaving the Nasdaq to slip lower on Tuesday despite bright spots in earnings. While the broader market showed resilience in some sectors, the tech-heavy index retreated 1.24% as traders absorbed mixed signals from Fed officials and rising bond yields. This slip in the Nasdaq stood in contrast to gains elsewhere, particularly in precious metals and select individual stocks that delivered strong quarterly results.

Divergent Stock Market Performance: Winners and Losers

The S&P 500 declined 0.58% while the Dow Jones managed a modest gain of 0.07%, illustrating the uneven nature of trading during this earnings-driven week. The Nasdaq’s slip came despite some compelling earnings surprises that momentarily lifted sentiment. Two major tech winners—Palantir Technologies, up more than 8%, and Teradyne, up over 7%—showcased the potential for outperformance when companies beat both revenue and forward guidance.

Palantir led gainers in the Nasdaq 100 after reporting Q4 revenue of $1.41 billion versus consensus of $1.33 billion, while projecting 2026 revenue between $7.18 billion and $7.20 billion, substantially exceeding the consensus estimate of $6.27 billion. Teradyne similarly impressed with Q4 net revenue of $1.08 billion above the $964.2 million consensus and guided Q1 revenue to $1.15 billion-$1.25 billion, well above the $929.8 million expectation.

However, weakness in other quarters offset these gains. PayPal Holdings delivered the most significant slip among major techs, plunging 18% to lead Nasdaq 100 losers. The payment processor reported Q4 net revenue of $8.68 billion, missing the $8.79 billion consensus, while simultaneously announcing CEO leadership changes that added to investor uncertainty.

Precious Metals Bounce Back: Gold and Silver Stage Substantial Recovery

Gold and silver markets delivered the session’s most impressive rebound, with precious metals posting substantial gains. Gold climbed more than 6% while silver soared over 13%, staging a notable recovery after two consecutive sessions of sharp declines. This rebound reflected shifting investor sentiment as safe-haven demand returned to the market.

Mining stocks benefited accordingly from the precious metals strength. Freeport-McMoRan advanced more than 5%, Hecla Mining climbed over 4%, while Coeur d’Alene, Newmont, and Barrick Mining each gained more than 3%. The sector’s resurgence illustrated how macro shifts can drive tactical opportunities in commodity-linked equities.

Fed Policy and Rising Bond Yields Create Headwinds

The primary headwind for stocks, particularly the Nasdaq, stems from higher bond yields and increasingly hawkish signals from Federal Reserve officials. The 10-year Treasury yield climbed to a 1.5-week high of 4.29%, pressuring growth-oriented equities that benefit from lower discount rates. Richmond Fed President Tom Barkin noted today that while the economic outlook improves and uncertainty fades, risks persist—particularly regarding concentrated job gains and inflation remaining above Fed targets.

Atlanta Fed President Raphael Bostic’s recent comments that he doesn’t project rate cuts for 2026 dampened market expectations for policy relief. Additionally, the market has assigned only a 9% probability to a 25-basis-point rate cut at the March 17-18 policy meeting. These signals have created an uncertain environment where equity investors must balance strong earnings against the prospect of persistent higher rates.

The partial U.S. government shutdown entering its fourth day has compounded anxiety. While House action on a spending deal negotiated between President Trump and Democrats could resolve the impasse, the funding lapse has already forced the Bureau of Labor Statistics to postpone critical employment data releases—delaying the December JOLTS report and Friday’s January nonfarm payrolls.

Earnings Season Maintains Positive Trajectory Despite Nasdaq Slip

Despite near-term price weakness in technology, the underlying earnings picture remains constructive. According to Bloomberg Intelligence, 78% of the 167 S&P 500 companies that have reported through early February beat earnings expectations. Q4 S&P 500 earnings are projected to grow 8.4% year-over-year, marking the tenth consecutive quarter of positive growth.

Notably, excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to rise 4.6%—demonstrating that profit growth extends well beyond the concentrated tech sector. This breadth provides a counterweight to today’s Nasdaq slip and suggests the market’s earnings season strength has room to persist.

DaVita led S&P 500 gainers with a 22% surge after reporting Q4 revenue of $3.62 billion, beating the $3.51 billion consensus. Woodward Inc. jumped 15% following Q1 adjusted earnings per share of $2.17, substantially exceeding the $1.65 consensus.

Semiconductor and Infrastructure Sectors Show Selective Strength

Despite the Nasdaq’s slip, semiconductor and AI infrastructure stocks demonstrated surprising resilience. Western Digital advanced over 6%, Seagate Technology climbed over 5%, Intel rose over 3%, and Applied Materials gained more than 2%. AMD, Broadcom, Lam Research, Analog Devices, and Texas Instruments each posted gains exceeding 1%.

In other strength areas, AES Corp. jumped more than 5% after Bloomberg reported that BlackRock Inc.'s Global Infrastructure Partners was teaming up with EQT to pursue acquisition. FedEx gained over 4% on a Bernstein upgrade to outperform with a $427 price target. Merck & Co. led Dow Jones gainers with a 3% advance after reporting Q4 sales of $16.40 billion, surpassing consensus of $16.17 billion.

Losers Reveal Earnings Miss Risks

Beyond PayPal’s significant slip, other major declines underscored the hazard of disappointing results. Gartner tumbled 24% to lead S&P 500 losers after reporting Q4 consulting segment revenue of $133.6 million, well below consensus of $157.9 million. Fabrinet fell 13% as results revealed component constraints pressuring datacom operations, with Q2 datacom revenue declining 7% year-over-year to $278 million.

NXP Semiconductors slid 8% after Q4 automotive revenue of $1.88 billion missed the $1.89 billion consensus. Archer-Daniels-Midland dropped 4% following Q4 revenue of $18.56 billion, significantly below the $21.05 billion consensus. Pfizer fell 4% after guiding full-year revenue to $59.5 billion-$62.5 billion, with the midpoint below consensus of $61.02 billion.

Week Ahead: Data and Deal Catalysts to Monitor

This week’s remaining market focus centers on employment data, economic indicators, and government funding resolution. Wednesday brings the January ADP employment change, expected at +45,000, alongside the January ISM services index projected at 53.5. Thursday features initial weekly unemployment claims anticipated at 212,000, while Friday concludes with the University of Michigan January consumer sentiment index expected at 54.9.

With 150 S&P 500 companies scheduled to report earnings this week, continued stock performance will likely hinge on execution relative to increasingly high expectations. The backdrop of higher rates, Fed caution, and government uncertainty continues to test investor conviction, even as the breadth of earnings growth suggests meaningful opportunity exists for disciplined investors navigating the current environment.