Tech Stocks Plunge, Bitcoin Crashes as US Job Market Weakens

Wall Street hit by drops in tech shares, rising unemployment claims, and plunging cryptocurrency prices

Feb. 5, 2026 at 9:07pm

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The U.S. stock market fell sharply on Thursday, led by declines in technology stocks. The S&P 500 dropped 1.1%, with the Nasdaq Composite down 1.3%. Alphabet, the parent company of Google, fell 1.4% after reporting higher-than-expected spending on artificial intelligence technology. Treasury yields also sank as data showed a jump in U.S. unemployment claims, signaling a potential slowdown in the job market. Bitcoin's price plunged nearly 50% from its record high set last fall, dragging down shares of crypto-related companies.

Why it matters

The tech stock and cryptocurrency sell-off, combined with weakening job market data, raises concerns about the broader economic outlook. The Federal Reserve may need to cut interest rates to support the economy, even as that risks worsening inflation. The volatility in asset prices also highlights the risks of speculative investments, especially in the crypto space.

The details

Alphabet's plans to significantly boost spending on AI technology spooked investors, who questioned whether the investments will pay off. In the bond market, Treasury yields fell as the number of U.S. workers applying for unemployment benefits jumped more than expected last week, a potential sign that layoffs are accelerating. A separate report showed that announced job cuts by U.S. employers surged in January to the highest level since 2009. The plunge in bitcoin's price, from a record above $124,000 to around $65,000, also dragged down shares of crypto-related companies like Coinbase and MicroStrategy.

  • On February 2, 2026, the number of U.S. workers applying for unemployment benefits jumped more than expected.
  • In January 2026, announced job cuts by U.S. employers surged to the highest level since 2009.

The players

Alphabet

The parent company of Google, YouTube, and other technology businesses.

Bitcoin

A decentralized digital cryptocurrency that has seen its price plunge nearly 50% from a record high set in October 2025.

Coinbase Global

A cryptocurrency trading platform whose stock price fell 10.5% due to the drop in bitcoin's price.

MicroStrategy

A company that has made a business of buying and holding bitcoin, and whose stock fell 14.5%.

Qualcomm

A chip company that topped analysts' expectations for profit and revenue but saw its stock fall 8% due to a weaker-than-expected forecast.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

The takeaway

The tech stock and cryptocurrency sell-off, combined with weakening job market data, highlights the broader economic uncertainty and the risks of speculative investments. The Federal Reserve may need to cut interest rates to support the economy, even as that could worsen inflation.