**MARKET BRIEF: Tech Tantrum Triggering Global Rotation** **US Markets: The Great Divergence** A historic disconnect has gripped Wall Street. As of **February 5, 2026**, the Dow Jones Industrial Average defied gravity, surging over **230 points** to hit a record high near **49,500**. This rally stands in stark contrast to the tech-heavy Nasdaq, which shed approximately **1.5%** (over **350 points**), dragging the index down to the **22,900** level. The catalyst? A sharp rotation out of inflated AI darlings into value stocks. Investors are fleeing the "AI trade" amid growing fears of disruption and overvaluation, sparked partly by new AI agent capabilities threatening traditional software business models. **Tech Sector Bleed: AMD & Palantir** The "AI culmination" anxiety has hit key players hard. * **Advanced Micro Devices (AMD):** The stock plummeted roughly **14%** to **16%** following a lackluster revenue forecast. despite beating earnings estimates, the company's warning that the data-center sales boom remains "months away" triggered a massive selloff. * **Palantir Technologies:** After a brief post-earnings pop earlier in the week, shares reversed course violently, dropping over **11%** in recent trading. The decline reflects broader skepticism about the sustainability of software valuations in an era of rapid AI commoditization. **Indian Markets: IT Stocks Feel the Heat** Indian indices mirrored the global anxiety, though with less volatility than their US counterparts. The BSE Sensex and Nifty 50 remained largely flat to marginally positive, with the Sensex hovering around **83,800** and Nifty near **25,770**. However, the pain was concentrated. Indian IT giants like **Infosys** and **TCS** faced selling pressure, tracking the Nasdaq's slump. The Nifty IT index underperformed as foreign institutional anxiety over tech valuations spilled into emerging markets. Conversely, "Old Economy" sectors like **Power** and **Metals** saw buying interest, cushioning the broader indices from a steeper fall. **The Safety Trade: Gold at $5,000** As capital flees volatile tech stocks, it is finding a home in safe havens. Gold prices have shattered historical ceilings, surging past the **$5,000 per ounce** mark. Silver also rallied, jumping nearly **7-8%**. This flight to safety underscores the market's fragility; investors are hedging against the bursting of the AI bubble by piling into tangible assets. **Summary Outlook** The market is currently undergoing a decisive regime change. The "growth at any cost" mantra driving the AI boom is being replaced by a scrutiny of immediate returns and valuations. While the broader industrial economy (Dow) remains robust, the tech sector is undergoing a painful, perhaps necessary, recalibration. ----- [Market selloff explained](https://www.google.com/search?q=https://www.youtube.com/watch%3Fv%3DF5MIZKY3VEV) The video provides a timely breakdown of the current tech-led selloff, explaining the specific rotation from AI growth stocks into value sectors and commodities like gold.