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Tech Sell-Off Drags Down US Markets

  //house-home.news-articles.net/content/2026/02/06/tech-sell-off-drags-down-us-markets.html
  Published in House and Home on Friday, February 6th 2026 at 4:49 GMT by London Evening Standard
      Locales: UNITED KINGDOM, UNITED STATES

Market Snapshot (09:48 GMT):

• FTSE 100: 7,563.72, Up 10.33 points (+0.14%)
• Dow Jones: 38,396.11, Down 1.44%
• Nasdaq: 15,966.67, Down 2.76%
• S&P 500: 4,433.21, Down 1.65%
• Bitcoin: $38,750, Down 6.2%

Wall Street's Tech Troubles Spill Over

The primary driver of the current market unease stems from a significant sell-off in US tech stocks. Amazon and Microsoft were particularly hard hit, both reporting earnings that, while still substantial, signaled a deceleration in growth. Amazon's shares tumbled 6% in New York trading, a clear indication of investor disappointment with projected sales figures. This isn't an isolated incident; a broader reassessment of growth expectations is unfolding within the tech sector, fueled by a combination of factors, including increased competition, maturing markets, and the impact of higher interest rates on consumer spending. The Nasdaq Composite, heavily weighted towards technology companies, bore the brunt of the downturn, falling over 2.76%.

Analysts are pointing to a potential paradigm shift, suggesting that the era of rapid, almost guaranteed growth for tech giants may be waning. Investors are now demanding stronger profitability and sustainable business models, rather than solely focusing on top-line revenue expansion.

UK Housing Market Continues to Cool

Closer to home, the UK housing market is showing further signs of cooling. Halifax's latest report indicates a 0.3% decline in house prices during January. While not a dramatic drop, this represents a continuation of the downward trend observed in recent months. The combined effect of high mortgage rates, driven by the Bank of England's efforts to combat inflation, and a cost-of-living crisis are impacting affordability and dampening demand. Many potential buyers are delaying purchases, waiting for greater clarity on the economic outlook and potential interest rate cuts. This slowdown isn't necessarily signaling a crash, but a recalibration towards more sustainable levels after the boom experienced during the pandemic. The article 'Why Britain's economy is still a mess' (link provided) details some of the long-term structural issues impacting the UK, exacerbating the housing affordability crisis.

Inflation Remains a Looming Threat

The persistent threat of inflation continues to dominate the global economic narrative. While inflation rates have begun to moderate from their peaks, they remain stubbornly above central bank targets. This has prompted ongoing debate about the pace and extent of future interest rate hikes. The upcoming jobs report later this week is expected to provide crucial insights into the health of the US economy and potentially influence the Federal Reserve's decision-making process. Strong employment data could embolden the Fed to maintain its hawkish stance, while weaker figures might encourage a more dovish approach. The article 'The return of inflation?' (link provided) explores the factors contributing to sticky inflation and the challenges faced by policymakers.

Companies in Focus:

• Amazon: The focus will remain on Amazon's guidance and its plans to address slowing sales growth. Investors will be scrutinizing its investments in areas like cloud computing (AWS) and artificial intelligence to determine if these can drive future growth.
• Shell: The energy giant's annual report, due later today, will be closely watched for insights into its performance amidst fluctuating oil prices and the global transition to renewable energy.
• Bitcoin: The cryptocurrency's recent decline highlights its continued volatility and sensitivity to macroeconomic factors, particularly interest rate expectations. Some analysts suggest that Bitcoin is increasingly behaving like a risk asset, susceptible to sell-offs during periods of economic uncertainty.

Looking Ahead

The coming days promise to be eventful for financial markets. The key jobs report will undoubtedly shape investor sentiment, alongside ongoing earnings reports from major US corporations. The FTSE 100's trajectory will likely depend on its ability to navigate these headwinds and demonstrate resilience in the face of global economic challenges.