Tech Stumbles After Apple; Fed Holds Line as Dollar Firms

U.S. equities pulled back as a heavier macro mix and post-earnings digestion weighed on risk appetite. Technology led declines, the S&P 500 slipped from record proximity, and the Nasdaq underperformed as investors reassessed earnings and policy signals. Treasury yields remained elevated after the recent move higher, keeping pressure on duration-sensitive assets. The VIX edged up, signaling increased caution. The dollar’s advance was a key cross-asset driver, amplifying the pullback in metals and adding friction to global risk assets.

1) Apple earnings spark a tech reset

Shares of Apple Inc. (AAPL) slid after earnings, setting the tone for the broader tech complex. While headline results were solid, the market focused on near-term margin and demand signals, cautious commentary around certain product lines, and the reality that expectations had risen sharply into the print. The reaction rippled across mega-cap tech as investors trimmed exposure after a strong run, pulling the Nasdaq lower and weighing on the S&P 500.

2) FOMC recap and the Warsh headline

The Federal Reserve left policy unchanged, as expected, and reiterated a data-dependent stance. Chair Powell acknowledged cooling in parts of the labor market while emphasizing that inflation progress remains uneven, reinforcing the message that cuts are not imminent. Markets also digested reports around Kevin Warsh emerging as a potential policy appointment, which added a layer of uncertainty around the future policy mix. Taken together, the Fed’s steady tone and the personnel chatter helped keep yields firm and supported the dollar, tightening financial conditions at the margin.

3) Dollar strength hits commodities

As the dollar strengthened, commodities broadly moved lower. Gold and silver retreated, extending a volatile stretch for precious metals as higher real yields and a firmer greenback undercut hedging demand. Copper also slipped on growth sensitivity, while oil pulled back after recent gains as traders reassessed near-term demand and positioning. The commodity downdraft reinforced today’s risk-off tilt and weighed on Materials and Energy equities.

Sectors

Technology was the clear laggard following Apple’s reaction and broader de-risking. Financials were mixed as higher yields offered support to margins but tighter conditions capped upside. Materials and Energy softened with commodities lower, while defensives held up relatively better as investors sought shelter. The tape reflected consolidation rather than capitulation, with selling concentrated in areas that had led earlier in the month.

Earnings

Monday, Feb 2, 2026

Before Market Open

• Walt Disney Company (DIS)
• Tyson Foods (TSN)
• Aptiv (APTV)
• Cigna (CI)
• Quest Diagnostics (DGX)

After Market Close

• Palantir Technologies (PLTR)
• ON Semiconductor (ON)
• NXP Semiconductors (NXPI)
• Teradyne (TER)
• Rambus (RMBS)
• Simon Property Group (SPG)
• DaVita (DVA)

Economic Data (ET)

• 9:45 a.m. — S&P Global Manufacturing PMI (Jan, final)
• 10:00 a.m. — Institute for Supply Management Manufacturing PMI (Jan)

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