Wall Street Tumbles as AI Concerns Linger

Nasdaq hits lowest point since November amid tech stock selloff

Published on Feb. 5, 2026

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Wall Street closed significantly lower on February 5th, with the tech-heavy Nasdaq index dropping to its lowest level since November. Losses were driven by declines in major tech giants like Microsoft, Amazon, and others, following comments from Google's parent company about potentially doubling its AI-related spending.

Why it matters

The sell-off reflects ongoing investor unease about the potential impact of artificial intelligence on the technology sector and broader economy. As AI capabilities rapidly advance, there are growing concerns about job displacement, regulatory challenges, and the long-term viability of some tech business models.

The details

The Nasdaq Composite index fell 2.4% on February 5th, dragged down by losses in Microsoft, Amazon, Apple, and other prominent tech firms. The sell-off came after Alphabet, Google's parent company, said it could double its spending on AI development, stoking fears about the disruptive potential of the technology.

  • The market closed on February 5th, 2026.

The players

Microsoft

A multinational technology company and one of the largest tech firms in the world.

Amazon

An e-commerce and cloud computing giant, and one of the most valuable companies globally.

Apple

A multinational technology company known for its consumer electronics, software, and online services.

Alphabet

The parent company of Google, one of the world's largest technology and internet companies.

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The takeaway

The market's sharp decline highlights the growing uncertainty surrounding the future of AI and its potential disruption to established tech companies and business models. Investors will be closely watching for further developments in this rapidly evolving space.