US Equity Indexes Slump as Investors Rotate Out of Technology

US equity indexes fell in midday trading on Tuesday as a sell-off in technology coincided with a move higher in value-oriented industry peer groups.

The Nasdaq Composite slumped 2.2% to 23,079.9, with the S&P 500 down 1.4% to 6,877.3 and the Dow Jones Industrial Average lower by 0.9% to 48,943.3.

Technology's 2.9% plunge was the steepest among sectors, and put it on course to become this week's worst performing. Consumer discretionary and communication services, which often lead markets with technology, were among the biggest laggards. Meanwhile, sectors such as consumer staples, materials, and energy led the gainers, a rotation in leadership.

In company news, Gartner (IT) shares sank 21%, the second-worst performer on the S&P 500, after the firm reported a slump in Q4 adjusted earnings and its 2026 outlook trailed market expectations.

Shares of PayPal (PYPL) plunged 20%, the steepest decline on the S&P 500 and the Nasdaq, after the company reported Q4 non-GAAP earnings and net revenue below market consensus.

IBM (IBM), Salesforce (CRM), Nvidia (NVDA), and Microsoft (MSFT) were the Dow's biggest decliners.

Meanwhile, Palantir Technologies' (PLTR) shares jumped 6.7%, the top gainer on the Nasdaq, after the company reported a year-over-year surge in Q4 earnings and sales, and set a full-year 2026 revenue outlook above consensus.

In economic news, consumer confidence for February rose from January, with the RealClearMarkets' monthly index climbing to 48.8 from 47.2 amid improvements in all components. The index been below 50 for six straight months. A reading above 50 signals optimism, while a print below 50 implies pessimism.

Redbook US same-store sales jumped 6.7% from a year earlier in the week ended Jan. 31, below the 7.1% sequential increase in the previous week. Redbook noted stores saw lower foot traffic due to severe winter weather.

Most US Treasury yields were little changed, with the 10-year Treasury at 4.27% and the two-year close to 3.57%.

Volatility returned to the precious metals market as Gold futures jumped 5.9% to $4,927.60 per troy ounce and silver futures surged 8.7% to $83.64 per troy ounce.

West Texas Intermediate crude oil futures jumped 1.4% to $63.03 a barrel.