Wall Street Rethinks AI Winners and Losers  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

February 04, 2026   |   Read Online Not a fan of Fred? Unsubscribe here.   Tech Slides as Investors Recheck the AI Boom Wall Street Rethinks AI Winners and Losers February 04, 2026 MorningBullets is the fastest way to catch up on the market and political news that matter most to your money. Quick takes, sharp insight, and curated opportunities—served fresh every weekday morning. Sponsored Content This Chart Pattern Looks Just Like TIO in Early 2023 Traders who got in early on $TIO saw outsized gains once the volume picked up. We're seeing something similar again — and it's not on the radar yet. Get the name and price setup — 100% free. 👉 Reveal the Ticker + Setup Now By clicking the link above you agree to receive periodic updates from our sponsor. Markets Reprice the AI Boom Good Morning, Markets are still near record highs, but a sudden wave of AI anxiety is shaking tech investors. New concerns that advanced AI tools could pressure software profits, instead of boosting them, helped trigger a sharp pullback in some of the market's biggest winners. We break down what sparked the selling, why investors are questioning future earnings, and what this shift could mean for anyone holding major AI-linked names. If you're indexed to the S&P or heavy in tech, this is the one to read. China's ban on electronic car door handles forces EV makers like Tesla to reengineer designs, while the U.S. launches a $12B mineral stockpile under Project Vault and Siemens Energy commits $1B to power America's AI-fueled electricity boom. Don't forget to voice your opinion in my polls below. Here are your Morning Bullets. – Truly yours, Fred Frost 📉 Yesterday's Market Recap Yesterday, U.S. markets took a hit as the S&P 500 and Nasdaq posted their steepest single-day losses in two weeks, driven by a selloff in software stocks amid AI disruption fears. The Dow fell 0.3% to 49,240.99, the S&P 500 dropped 0.8% to 6,917.81, and the Nasdaq slid 1.4% to 23,255.19. Gold and silver, however, rebounded sharply after recent volatility. Software Stocks Sink Markets: Fears of AI-driven disruption, particularly from Anthropic's new automation tools, hammered software equities, pulling major indices down from record highs. → MarketWatch Gold's Historic Rebound: Gold futures surged over 6% to settle above $4,900/oz, marking the largest one-day percentage gain since 2009 after a brutal selloff. → Seeking Alpha Bitcoin Hits 16-Month Low: Bitcoin dropped to $72,884.38, its lowest since November 2024, amid geopolitical tensions and ETF outflows totaling $1.5 billion last week. → CNBC 📉 Daily Performance Snapshot Index/Asset Closing Value Change S&P 500 6,886.99 -1.28% Nasdaq 23,594.81 -1.10% Dow Jones 49,240.99 -0.34% Gold 5,079.56 +2.69% Crude Oil 63.64 +0.68% Bitcoin 75,986.00 -2.78% 10-yr Treasury Yield 4.28% -0.23% 🔭 What to Watch Today Today's calendar has a few critical events that could sway markets, from earnings reports to geopolitical flashpoints. Keep your radar on these developments as they unfold. Stanley Black & Decker Earnings Reaction: After reporting a Q4 EPS of $1.41, beating estimates by 10%, watch for market reaction to their revenue dip of $37M year-over-year—will margins hold investor confidence? → Benzinga Panama Canal Arbitration Update: CK Hutchison's arbitration filing against Panama over port concessions could escalate tensions—expect potential statements from China or the U.S. impacting trade sentiment. → ABC News Bunge Global Post-Earnings Guidance (Post-9 AM ET): Bunge Global's Q4 EPS beat of $1.99 vs. $1.82 is out; focus on their forward guidance today for clues on agribusiness trends amid volatile commodity prices. → Benzinga 💡 Opportunity Watch Amid today's volatility, a few themes stand out for sharp-eyed investors. These sectors and stocks could offer upside if you play the angles right—let's dig in. Enphase Energy (ENPH): With a 25% premarket surge post-Q4 beat and BMO Capital's upgrade to $41 target, solar energy looks poised for a rebound as utility rates climb. → Stocktwits South Korean Tech & Defense (EWY ETF): South Korea's Kospi is up 27% YTD, driven by memory chips and defense—consider the iShares MSCI South Korea ETF for exposure to this outlier rally. → MarketWatch TRM Labs Blockchain Analytics: Fresh off a $70M Series C at a $1B valuation, TRM Labs could benefit from the 500% spike in crypto scams as demand for security tools surges. → Fortune Sponsored Content 3 Under-the-Radar Stocks Worth a Look Amid chop, we're seeing early momentum in select small-caps. Our free note explains the thesis, names the tickers, and shows how to monitor the setups live. 📥 Send Me the Report + Alerts By clicking this link you will automatically be subscribed to the Market Pulse Today Newsletter. See our Privacy Policy. 🔥 The Big Bullet AI fears trigger a tech stock selloff as profit outlooks get questioned What happened: Tech stocks slid sharply after fresh talk that new AI tools could hurt, not help, many software companies. A Fortune report said traders started to price in the risk that AI can cut revenues across the board for tech firms by making some products cheaper or easier to copy. At the same time, another report said Anthropic's latest AI rollout helped trigger a tech stock selloff and raised new worries about job losses in software roles. This selling hit big names tied to AI spending and cloud software. The move was more about fear of future profits than one single earnings miss. Investors also seemed to rotate toward areas seen as steadier for now. The drop came quickly, showing how sensitive the market is to AI headlines. By the end of the session, many tech charts looked weaker than they had a week ago. Why it matters: When stock prices fall on a story like this, it can change how investors value growth companies. If AI makes it easier for rivals to copy features, companies may have to cut prices, which can squeeze profits. It can also speed up cost-cutting, which may hurt hiring and pay in parts of the tech job market. That matters for the economy because tech paychecks support spending on homes, travel, and services. Some investors are already sounding cautious—David Einhorn warned stock investors to watch for hidden risks when prices look stretched. And in the AI race itself, Palantir's CEO said parts of the West are slow to adopt AI, which could shift where growth shows up first. Put together, these worries can push money toward safer sectors and into cash or short-term bonds. For retail investors, it is a reminder that big themes like AI can lift stocks fast and pull them down fast too. What's next: Watch the next round of earnings calls, because company guidance can calm—or worsen—these AI fears. One near-term focus is results and outlooks from AMD and other earnings movers, since chips and networking gear are key to AI spending. Listen for clear numbers on what firms plan to spend on AI, and whether they expect that spending to raise sales soon. Also watch for signs that businesses are using AI mainly to cut costs, because that can be bad news for jobs and for long-term demand. Outside pure software, companies are already looking at automation—Hyundai says it may use humanoid robots to offset tariffs at U.S. plants, which shows how fast tech can change labor plans. If more firms take a similar path, markets may re-price which companies win and which workers are most at risk. Finally, keep an eye on whether the selloff spreads beyond tech into the broader market. If it does, that can change interest-rate expectations and investor mood in a hurry. How AI is changing the way software companies make money, which is the core fear behind the selloff. – McKinsey.com AI is reshaping which software companies win or lose">Why investors worry AI could replace or undercut existing software giants, not just boost them – Janushenderson.com Labor and economic anxiety tied to AI progress, which adds fuel to market nervousness. – Investopedia Reader Feedback Last time, I asked you: If OpenAI ever buys fewer chips from Nvidia, what do you think happens first? The majority of you at 37% said "Another chip company becomes the new winner" Alyssa from Georgia replied: "I think another chip company would start doing better first because investors would look for the next big winner." Here's what I'm asking you today: Do you think AI will help tech companies grow, or hurt them more than investors expect? Help them grow Hurt profits and jobs Both at the same time Unsure / No opinion Other As always if your opinion is not here, or you want to throw your two cents at me, reply to the E-mail, and let me know your exact thoughts. 🧭 Policy & Market Ripples China Bans Electronic Car Door Handles: Starting 2027, China mandates mechanical door releases on vehicles over safety concerns. Tesla and local EV makers like Xiaomi must adapt, potentially raising costs. → Fox Business Project Vault Bolsters U.S. Mineral Independence: A $12 billion U.S. initiative, Project Vault, aims to stockpile critical minerals and reduce reliance on China. Stakes in firms like MP Materials signal a long-term national security play. → Fortune Siemens Energy's $1 Billion U.S. Bet: Siemens Energy invests $1 billion to expand U.S. power grid capacity for AI data center demand, creating 1,500 jobs. A 20% boost in global turbine production is expected. → Fox Business 📜 This Day in History – February 4 February 4 is a study in scale: a startup becomes a global network, a struggling automaker becomes a luxury brand, a Broadway play becomes cultural canon, and an album becomes evergreen commercial strategy. 2004 – Facebook launched from a Harvard dorm room, turning directory information into a network effect that would redefine digital identity, advertising, and social infrastructure. 1922 – Ford Motor Company purchased Lincoln, demonstrating how consolidation can resuscitate a distressed luxury brand and broaden a manufacturer's market segmentation strategy. 1938 – Thornton Wilder's *Our Town* opened on Broadway, a minimalist production that became an enduring cultural export thanks to its reproducibility and low production costs. 1977 – Fleetwood Mac released *Rumours*, a case study in how emotional storytelling + studio precision can create one of the most commercially resilient albums in music history. Today's Trivia What does the term financial resilience mean? A) The ability to earn a high income quickly B) The ability to withstand and recover from financial shocks, like unexpected expenses or job loss C) The practice of investing only in safe assets D) The process of avoiding all debt 81% of you chose the right answer to our previous trivia question: What does the term purchasing power refer to? Pursuing your passion is fulfilling and leads to financial freedom. – Robert G. Allen Thanks for Reading. Stay Sharp. Stay Focused. Fredrick Frost Editor, MorningBullets   Update your email preferences or unsubscribe here © 2026 Morning Bullets 20 North Orange Ave. Floor 11 Orlando, Florida 32801, United States Terms of Service