Why Big Tech's AI Spending Just Shook the Market  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

February 05, 2026   |   Read Online Not a fan of Fred? Unsubscribe here.   Tech Stocks Stumble as AI Costs Shock Wall Street Why Big Tech's AI Spending Just Shook the Market February 05, 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 Trump's Policy Surge: 5 Stocks Already on the Move Sectors like energy and defense are heating up fast under the current administration. This report reveals where capital is flowing—and which 5 stocks are best positioned for gains. Momentum favors the early movers. Get the edge while others hesitate. 📊 Download the Full Ticker List By following the links above, you're opting in to receive valuable updates from American Investor News plus 2 bonus subscriptions. Your privacy is important to us. You can unsubscribe anytime. See our privacy policy for details. Wall Street reckons with the rising cost of artificial intelligence. Good Morning, Markets were cruising near record highs, until a new worry hit investors where it hurts most: AI's soaring price tag. Big Tech's race to dominate artificial intelligence is getting wildly expensive, and Wall Street is starting to flinch. We break down what sparked today's tech selloff, why investors suddenly care about cash burn, and whether this is a short-term scare or the start of a bigger rethink. If you're indexed to the S&P or loaded up on AI winners, this is one you don't want to skip The Bank of England's surprise rate hold jars UK markets, Gen Z's job hunt struggles highlight labor market cracks, and Chrysler recalls 450K vehicles over critical trailer brake defects. 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's markets painted a split picture—earnings surprises lifted select stocks, but broader indices wobbled under tech sector pressure and bitcoin's steep slide. The Dow and S&P futures dipped, reflecting unease after Alphabet's capex news, while some heavy hitters posted numbers worth a second look. IQVIA (IQV) Earnings Beat: Reported Q4 EPS of $3.42, topping estimates by $0.13, with revenue up $406M year-over-year and bullish 2026 guidance. → Benzinga AGCO Outperforms: Posted a Q4 non-GAAP EPS of $2.17, beating by $0.31, with revenue up 1% to $2.92B and optimistic 2026 sales forecast. → Seeking Alpha Bitcoin Below $70K: Dropped to its lowest since late 2024, down 44% from its October peak, dragging crypto sentiment lower amid tech jitters. → MarketWatch 📉 Daily Performance Snapshot Index/Asset Closing Value Change S&P 500 6,904.04 -13.77 (-0.20%) Nasdaq 22,857.08 -398.11 (-1.71%) Dow Jones 49,328.54 +87.55 (+0.18%) Gold 4,899.10 -46.70 (-0.94%) Crude Oil 63.94 -1.20 (-1.84%) Bitcoin 69,301.00 -5,683.00 (-7.579%) 10-yr Treasury Yield 4.251% -0.027 (-0.63%) 🔭 What to Watch Today Today's calendar offers a mix of earnings reports and policy ripples that could sway markets. Keep your eyes on these key events as they unfold. Lightspeed Commerce (LSPD) Earnings Reaction: After a 50% EPS beat for Q3 at $0.15, watch for market response to their $32.2M revenue growth and historical post-earnings volatility. → Benzinga Bank of England Fallout: Following a tight 5-4 vote to hold rates at 3.75%, markets may price in future cuts as inflation projections improve—pound and gilts in focus. → MoneyWeek TotalEnergies (TTE) Premarket Moves: With a clean energy deal for Airbus and a slight 0.88% premarket dip, Q4 earnings on Feb 11 could shift energy sector sentiment. → Benzinga 💡 Opportunity Watch Amid the market chop, a few themes stand out as potential plays for the sharp-eyed investor. Here's where I'm seeing value worth a closer look. Private Credit ETFs (PCMM): BondBloxx's private credit ETF offers diversified exposure to over 7,000 loans, up 7% since launch—could be a hedge against broader credit fears. → CNBC Construction Partners (ROAD): With a 44.1% revenue jump to $809.5M in Q1 and raised 2026 guidance, infrastructure spending trends could keep this stock on a growth path. → Seeking Alpha Hongkong Land SCPREF Fund: A $6.5B real estate fund targeting prime Singapore assets with a $15B goal—could signal strength in asset-light commercial plays. → Fortune Sponsored Content Free Book: Your Crypto Blueprint for Right Now Crypto is beaten down—and that's often when opportunity forms. While fear is high, major institutions keep building. Get the free book that lays out a beginner-friendly blueprint for buying crypto intelligently and positioning for the next rally. How to start with as little as $50 Coins "smart money" is watching now A simple formula for buying at low prices Steps to help make your crypto more secure Claim Your Free Book By clicking the link above you agree to receive periodic updates from our sponsor. 🔥 The Big Bullet Tech Stocks Drop as AI Costs Soar What happened: Investors were shocked today by news regarding the massive costs of artificial intelligence. Alphabet announced it might spend up to $185 billion, largely to build out its AI capabilities. This update caused a sharp selloff in the technology sector. Alphabet has sharply raised its 2026 capital spending plans to meet its ambitious goals. The panic spread quickly to other industry giants. As a result, Microsoft, Google, and Nvidia shed billions in market value. The market reaction shows that traders are wary of such high price tags. Why it matters: This selloff marks a change in how investors view tech growth. For years, people bought these stocks assuming they would always go up. Now, traders lose $1 trillion on the realization that AI will eat tech companies first. The concern is that companies are spending huge amounts of cash without guaranteed profits. Huge AI spending stuns conservative investors because it lowers cash flow. If these expensive projects do not pay off soon, stock prices could fall further. It is a reminder that even big companies need to manage their budgets carefully. What's next: All eyes will be on the next round of corporate earnings reports. Investors want to see if other companies plan to spend just as much money. For instance, Amazon heads into earnings with its Capex plan in focus. If Amazon also announces high costs, the market nervousness could continue. Analysts will watch to see if these investments actually generate real revenue. Tech companies now face tight timelines to prove their strategies work. We will see if the heavy selling is just a short-term reaction or a longer trend. Why Stocks Can Fall Even When Earnings Are Good, Investors Are Worried About AI Spending Dragging Cash Flow – Investors.com Here's a contrasting perspective from major analysts, arguing that part of the selloff is driven by excessive fear or overreaction to AI concerns rather than deteriorating business fundamentals. It gives readers insight into why sentiment, not just spending news, is driving price swings. – The Economic Times Reader Feedback Last time, I asked you: Which part of Trump picking a new Fed chair worries you most? The majority of you at 45% said "Stocks getting more unstable" Kevin from Oregon replied: "I worry the stock market could get shakier because a new Fed chair might make investors nervous." Here's what I'm asking you today: What worries you most about Big Tech's massive AI spending? Companies burning too much cash AI won't pay off anytime soon Stock prices are getting ahead of reality Not sure/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 UK Rate Hold Shakes Markets: Bank of England's 5-4 vote to keep rates at 3.75% rattled the pound and gilts, with a dovish tilt hinting at cuts by spring. → MarketWatch Gen Z Job Market Despair: A Gen Z grad applied to 1,000 roles, even lowballing salary by $20K, exposing a brutal hiring landscape—labor trends to watch. → Fortune Chrysler Recall Hits 450K Units: A design flaw in tow-trailer modules risks brake light and braking failures, impacting Jeep and Ram models—safety costs loom. → Fox Business < 📜 This Day in History – February 5 February 5 leans toward systems thinking: scientific tools get sharper, networks get formalized, and culture uncovers new ways to commercialize imagination. It's the kind of day where infrastructure quietly levels up. 1860 – Astronomer Giovanni Battista Donati pioneered spectroscopic techniques, turning starlight into analyzable data and making astrophysics more laboratory science than poetic guesswork. 1851 – Western Union's early consolidation efforts began, a prelude to the company becoming a backbone of telegraphic finance and long-distance communication infrastructure. 1925 – *The New Yorker* published its first issue, establishing a durable format for long-form commentary that blended journalism with brand identity decades before "media strategy" was a term. 1884 – Greenwich was officially adopted as the location of the prime meridian, giving global navigation and timekeeping the stable coordinate system they still use today. Today's Trivia What is the main purpose of credit counseling? A) To help people qualify for higher-interest loans B) To assist individuals in managing debt, budgeting, and improving financial habits C) To encourage consumers to spend more D) To replace the need for financial regulation 83% of you chose the right answer to our previous trivia question: What does the term financial resilience mean? When you understand that your self-worth is not determined by your net-worth, then you'll have financial freedom. – Suze Orman 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