Why US Stocks Tumbled Today: Decoding the Perfect Storm of Tech Worries and Labor Market Softness

The US market experienced a significant selloff today, with broad-based declines signaling mounting investor anxiety over technology sector prospects and deteriorating labor market conditions. The S&P 500 retreated 1.30%, the Dow Jones fell 1.25%, and the Nasdaq 100 dropped 1.49%, marking another painful session for equities as this week’s downturn accelerated sharply.

The Tech Giant Stumble: How Qualcomm and Alphabet Triggered a Broad Selloff

Technology stocks led the decline, with chip manufacturers facing particular pressure. Qualcomm plunged more than 8% after revealing weaker-than-expected second-quarter revenue guidance of $10.2 billion to $11.0 billion, falling short of consensus expectations of $11.18 billion. This disappointing outlook rippled across the semiconductor complex, dragging down peers including Marvell Technology (down 3%), Advanced Micro Devices (down 2%+), NXP Semiconductors (down 2%+), and Western Digital (down 2%+).

The “Magnificent Seven” technology giants also suffered material losses. Alphabet declined more than 4% following its disclosure that full-year 2026 capital expenditures would reach $175 billion to $185 billion—substantially exceeding analyst consensus of $119.5 billion. Market observers worry this aggressive capex trajectory could compress the company’s free cash flow generation. Amazon.com, Microsoft, and Tesla each dropped more than 3%, while Nvidia, Apple, and Meta Platforms posted smaller but still meaningful declines of less than 1%.

A Weakening Labor Market Rattles Investor Confidence

Beyond technology concerns, alarming labor market data amplified the selloff. Challenger reported that January job cuts surged 117.8% year-over-year to 108,435 positions—the highest January tally since 2009. This signal of corporate retrenchment sparked fear among investors accustomed to a resilient employment backdrop.

Further troubling signals emerged from weekly jobless claims data, which rose by 22,000 to reach 231,000, marking an 8-week high and exceeding economist expectations of 212,000. Perhaps most concerning, the December Job Openings and Labor Turnover Survey (JOLTS) unexpectedly contracted by 386,000 positions, falling to 6.542 million openings—a 5.25-year low and well below the anticipated increase to 7.250 million. This triple whammy of labor market weakness triggered a reassessment of economic resilience.

Federal Reserve Governor Lisa Cook reinforced the central bank’s hawkish posture, reiterating support for last week’s decision to maintain interest rates steady. “We now see risks as tilted toward higher inflation,” she stated, adding that “after nearly five years of above-target inflation, it is essential that we maintain our credibility by returning to a disinflationary path.”

Bond Rally and Crypto Collapse: The Flight to Safety

The equity selloff ignited a classic flight-to-safety trade in fixed income. March 10-year Treasury notes rallied to a 2.5-week high, with yields declining 6.2 basis points to 4.212%—touching a 1-week low of 4.208%. Falling inflation expectations provided additional tailwinds, as the 10-year breakeven inflation rate slipped to a 1-week low of 2.318%.

European government bonds also advanced, with the 10-year German bund yield declining 1.2 basis points to 2.848% and the UK 10-year gilt yield falling 0.8 basis points to 4.538%.

Meanwhile, cryptocurrency suffered a sharp reversal. Bitcoin plummeted more than 7% to a 1.25-year low as negative momentum accelerated across digital assets. The cryptocurrency has now retreated approximately 45% from its October record high. Adding to bearish sentiment, inflows into US spot Bitcoin ETFs reversed dramatically, with Bloomberg data showing roughly $2 billion in redemptions over the past month and more than $5 billion in outflows over the prior three months.

Cryptocurrency-exposed equities mirrored Bitcoin’s weakness. MicroStrategy collapsed more than 12% to lead Nasdaq losers, Marathon Digital Holdings dropped 10%+, Coinbase Global fell 8%+, and Galaxy Digital Holdings and Riot Platforms declined 5%+.

Individual Stock Winners and Losers: Who Benefited From Today’s Shakeup?

Beyond the tech wreckage, significant earnings misses contributed to the market’s downturn. Fluence Energy plummeted 24% after reporting a Q1 adjusted EBITDA loss of $52.1 million, worse than the consensus expectation of $27.1 million. Estee Lauder slumped 21%—the largest S&P 500 decliner—after forecasting full-year adjusted earnings per share of $2.05 to $2.25, with the midpoint trailing consensus of $2.17.

Other earnings disappointments included IQVIA Holdings (down 8% on 2026 EPS guidance below expectations), Ares Management (down 8% after a Q4 EPS miss), Cummins Inc (down 7% following below-consensus earnings), Eli Lilly (down 7% on competitive threats from lower-cost weight-loss medications), and Crown Castle (down 6% after disappointing EBITDA guidance).

Yet not all companies stumbled. McKesson Corp emerged as the S&P 500’s largest gainer, rallying 16% after beating Q3 earnings expectations and raising full-year guidance. Corpay surged 11% following better-than-expected Q4 revenue, while Align Technology rose 10% on strong quarterly earnings, and Hershey advanced 7% on robust Q4 results and bullish full-year guidance. ARM Holdings climbed 4% to lead Nasdaq gainers following a buy-rating upgrade from New Street Research.

What Investors Should Watch: Earnings Season and Rate Cut Odds

The earnings calendar remains packed this week, with 150 S&P 500 companies scheduled to report quarterly results. Early returns have proven encouraging from an earnings quality standpoint: of the 237 companies that have already reported, 81% exceeded expectations. According to Bloomberg Intelligence, S&P 500 earnings are projected to expand 8.4% in Q4—marking the tenth consecutive quarter of year-over-year growth. Stripping out the Magnificent Seven technology stocks, Q4 earnings growth is expected to decelerate to 4.6%.

Regarding monetary policy expectations, financial markets are currently pricing in a 25% probability of a -25 basis point rate cut at the Federal Reserve’s March 17-18 policy meeting. The European Central Bank kept its deposit facility rate unchanged at 2.00%, while the Bank of England maintained its policy rate at 3.75% in a 5-4 vote, with Governor Bailey suggesting scope for future easing if economic data evolves favorably.

Internationally, the market weakness extended beyond US borders. The Euro Stoxx 50 fell 1.19%, China’s Shanghai Composite declined 0.64%, and Japan’s Nikkei 225 retreated 0.88%. Weaker economic data added to global growth concerns, including a 0.8% month-on-month decline in Eurozone retail sales—the largest in 2.25 years, though partially offset by a surprise 7.8% jump in German factory orders.

The coming week’s University of Michigan consumer sentiment index reading on Friday will provide further insight into household economic confidence amid today’s market turbulence and rising job cut announcements.