The stock market experienced a significant sell-off after the close on Thursday, February 5, 2026, primarily driven by Amazon's disappointing earnings report and aggressive capital spending projections. This "risk-off" sentiment extended a broader market decline triggered earlier in the day by weak U.S. labor data and a deepening rout in the technology and cryptocurrency sectors.
Primary After-Hours Drivers
- Amazon (AMZN) Results: Amazon shares plummeted 11% in after-hours trading. While revenue exceeded expectations, earnings per share slightly missed, and the company spooked investors by announcing a staggering $200 billion in planned capital expenditures for 2026—significantly higher than the $146 billion analysts expected.
- AI Capex Concerns: Similar to Alphabet's update earlier in the week, Amazon's massive AI-related spending raised fears about margin pressure and the timeline for returns on investment, leading to a "freefall" in software and tech-heavy indices.
- Weak Labor Signals: Earlier reports showed 231,000 initial jobless claims, higher than the 212,000 expected. Furthermore, U.S. employers announced over 108,000 layoffs in January, the highest level for that month since 2009, heightening recessionary fears.
Key Market Indices at Close
The regular session also saw major losses across all indices:
- S&P 500: Fell 1.23% to 6,798.40, marking its third straight losing session.
- Nasdaq Composite: Dropped 1.59% to 22,540.59 as tech volatility peaked.
- Dow Jones: Slipped 1.20% (approx. 600 points) to 48,908.72.
- Bitcoin: Plunged below $64,000, continuing a broader retreat from recent highs.
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