The Dow Jones Industrial Average surged 962.86 points, or 1.97%, to 49,871.58, marking one of the strongest single-day rallies of 2026 and pushing the blue-chip index to a fresh all-time high. The S&P 500 jumped 1.52% to 6,901.64, while the tech-heavy Nasdaq Composite climbed 1.68% to 22,919.15.
The move came after several bruising sessions driven by aggressive tech selling, a sharp drawdown in bitcoin, and a spike in market volatility. Friday’s rebound was data-led and broad-based. Mega-cap technology stabilized. Cyclicals and financials rotated higher. Volatility eased. Commodities firmed. And a key consumer sentiment gauge showed inflation fears cooling. Together, those signals flipped risk appetite in a single session and pulled major benchmarks back toward positive territory for the year.
The scale of the rally mattered. The Dow’s nearly 1,000-point jump turned the index positive for the week and underscored a leadership shift away from pure growth into economically sensitive stocks. The S&P 500 edged back into the green for 2026 after flirting with its worst weekly loss since October. The Nasdaq, still down on the week, nevertheless staged a decisive bounce as investors reassessed valuations after a fast correction.
Although the S&P 500 and Nasdaq remain slightly down for the week, Friday’s record-breaking performance signaled a major turning point for investors who had been spooked by rising layoffs and big-tech spending concerns.
The catalyst was a synchronized reversal across risk assets. Technology shares, hit earlier by profit-taking and fears of AI-driven disruption in software, rebounded sharply. NVIDIA Corporation rose 6.78%, adding more than $200 billion in market value in a single session. Broadcom jumped about 7%. Advanced Micro Devices rallied 8%. The chip complex as a whole snapped back after steep weekly losses.
At the same time, rotation accelerated into industrials and financials—areas that dominate the Dow’s price-weighted construction. Caterpillar surged roughly 6%, reflecting renewed confidence in global demand and infrastructure spending. Goldman Sachs advanced about 3%, benefitting from the easing of volatility and expectations that capital markets activity could stabilize.
The rally was also helped by relief in crypto markets. Bitcoin rebounded 10%, climbing back above $70,000 after briefly sliding below $61,000 overnight. That move reduced risk-off pressure that had weighed on equities when bitcoin was down more than 50% from its October 2025 record near $126,000. While bitcoin remained lower for the week, the snapback mattered for sentiment.
Not all technology names joined the party. Software stocks tied to enterprise AI spending remained mixed as investors continued to debate margins and competitive pressure. Still, the magnitude of gains in chips and select mega-caps was enough to pull the Nasdaq decisively higher on the day.
One notable outlier was Amazon.com, Inc.. Shares fell nearly 8% after earnings per share missed expectations and management guided to $200 billion in capital expenditures this year. The drop highlighted a market still willing to punish disappointing guidance, even on a strong tape.
Commodities moved higher, reinforcing the cyclical rotation. WTI crude rose 1.52% to $64.25 a barrel. Brent crude gained 1.31% to $67.36. Natural gas edged up 0.85%. Gold jumped nearly 2% to $4,984.50, reflecting both safe-haven demand and expectations that inflation pressures may continue to cool. Silver slipped slightly, but broader metals remained supported.
The combination—lower volatility, firmer energy prices, and resilient precious metals—signaled a market recalibrating rather than capitulating.
Most important for markets, near-term inflation expectations dropped sharply. The one-year outlook fell to 3.5%, down 0.5 percentage points from January and the lowest reading since January 2025. The five-year view ticked up slightly to 3.4%, but remained contained.
Lower inflation expectations helped ease concerns about tighter financial conditions and supported equity valuations. Survey details showed sentiment improving most among households with larger stock portfolios, aligning with Friday’s equity rally.
Nvidia shares surged 7.37% to $184.55 as global chip demand signals turned overwhelmingly positive. A key supplier, Wistron, confirmed accelerating AI orders for 2026, while the Semiconductor Industry Association projected global chip sales could hit $1 trillion this year. This data-driven optimism suggests that Nvidia’s high-end GPUs remain the indispensable backbone of the AI era.
What caused Amazon (AMZN) shares to plunge nearly 8%?
Amazon became the day's major outlier, dropping $17.50 to $205.19 following its Q4 earnings report. While revenue hit $213.4 billion, investors were rattled by a massive $200 billion capital expenditure plan for 2026. This aggressive spending on AI infrastructure raised immediate concerns about near-term free cash flow and potential margin compression.
Why did Stellantis (STLA) suffer a record 24.5% crash?
Stellantis stock cratered to $7.21 after the automaker announced a staggering $26.5 billion restructuring charge. The company is executing a "Great EV Reset," pivoting back to internal combustion engines and hybrids due to cooling electric vehicle demand. To preserve liquidity during this strategic shift, the board also took the drastic step of suspending the 2026 dividend.
What triggered the 32.5% explosion in SunOpta (STKL) stock?
SunOpta shares skyrocketed to $6.40 following the announcement of a definitive agreement to be acquired by Refresco. The all-cash deal, valued at $6.50 per share, will turn the plant-based beverage provider into a private subsidiary by Q2 2026. This strategic acquisition validates SunOpta’s growth in the "better-for-you" food space and provided a massive payday for current shareholders.
How did Bitcoin’s recovery impact crypto stocks like MARA Holdings?
MARA Holdings jumped 20.06% to $8.08 as Bitcoin reclaimed the $70,000 level after a volatile week. This rebound eased "risk-off" fears that had previously sent the stock down nearly 19% in a single session. The stabilization in digital assets provided a necessary boost to the broader "Fear Gauge" (VIX), which dropped below 20, signaling a return of retail investor confidence.
The move came after several bruising sessions driven by aggressive tech selling, a sharp drawdown in bitcoin, and a spike in market volatility. Friday’s rebound was data-led and broad-based. Mega-cap technology stabilized. Cyclicals and financials rotated higher. Volatility eased. Commodities firmed. And a key consumer sentiment gauge showed inflation fears cooling. Together, those signals flipped risk appetite in a single session and pulled major benchmarks back toward positive territory for the year.
The scale of the rally mattered. The Dow’s nearly 1,000-point jump turned the index positive for the week and underscored a leadership shift away from pure growth into economically sensitive stocks. The S&P 500 edged back into the green for 2026 after flirting with its worst weekly loss since October. The Nasdaq, still down on the week, nevertheless staged a decisive bounce as investors reassessed valuations after a fast correction.
Why the Dow, S&P 500, and Nasdaq surged today
On Friday, February 6, 2026, the Dow Jones Industrial Average ignited a historic "tsunami" rally, skyrocketing 962.86 points (1.97%) to a new all-time high of 49,871.58. This massive surge effectively halted a brutal week of selling that had briefly wiped out the market's yearly gains. The S&P 500 followed suit, gaining 1.52% to reach 6,901.64, while the Nasdaq Composite jumped 1.68% to 22,919.15.Although the S&P 500 and Nasdaq remain slightly down for the week, Friday’s record-breaking performance signaled a major turning point for investors who had been spooked by rising layoffs and big-tech spending concerns.
The catalyst was a synchronized reversal across risk assets. Technology shares, hit earlier by profit-taking and fears of AI-driven disruption in software, rebounded sharply. NVIDIA Corporation rose 6.78%, adding more than $200 billion in market value in a single session. Broadcom jumped about 7%. Advanced Micro Devices rallied 8%. The chip complex as a whole snapped back after steep weekly losses.
At the same time, rotation accelerated into industrials and financials—areas that dominate the Dow’s price-weighted construction. Caterpillar surged roughly 6%, reflecting renewed confidence in global demand and infrastructure spending. Goldman Sachs advanced about 3%, benefitting from the easing of volatility and expectations that capital markets activity could stabilize.
The rally was also helped by relief in crypto markets. Bitcoin rebounded 10%, climbing back above $70,000 after briefly sliding below $61,000 overnight. That move reduced risk-off pressure that had weighed on equities when bitcoin was down more than 50% from its October 2025 record near $126,000. While bitcoin remained lower for the week, the snapback mattered for sentiment.
Tech stocks rebound after heavy selling pressure
Semiconductors led the recovery. The VanEck Semiconductor ETF gained nearly 5%, even after being down earlier in the week. Taiwan Semiconductor Manufacturing added about 4%, while ASML also rose roughly 4%, signaling renewed confidence across the global chip supply chain.Not all technology names joined the party. Software stocks tied to enterprise AI spending remained mixed as investors continued to debate margins and competitive pressure. Still, the magnitude of gains in chips and select mega-caps was enough to pull the Nasdaq decisively higher on the day.
One notable outlier was Amazon.com, Inc.. Shares fell nearly 8% after earnings per share missed expectations and management guided to $200 billion in capital expenditures this year. The drop highlighted a market still willing to punish disappointing guidance, even on a strong tape.
Volatility drops, commodities rise, and risk appetite improves
Market stress indicators confirmed the shift in tone. The CBOE Volatility Index fell back below 20, sliding to about 19 after spiking earlier in the week to its highest level since November. Lower volatility eased pressure on systematic strategies and helped stabilize flows into equities.Commodities moved higher, reinforcing the cyclical rotation. WTI crude rose 1.52% to $64.25 a barrel. Brent crude gained 1.31% to $67.36. Natural gas edged up 0.85%. Gold jumped nearly 2% to $4,984.50, reflecting both safe-haven demand and expectations that inflation pressures may continue to cool. Silver slipped slightly, but broader metals remained supported.
The combination—lower volatility, firmer energy prices, and resilient precious metals—signaled a market recalibrating rather than capitulating.
Consumer sentiment data adds fuel to the rally
Macro data provided a final push. The University of Michigan Survey of Consumers showed sentiment improving at the start of February. The headline index rose to 57.3, beating the 55.0 consensus estimate and up 1.6% from January. Current conditions climbed 5.2% to 58.3.Most important for markets, near-term inflation expectations dropped sharply. The one-year outlook fell to 3.5%, down 0.5 percentage points from January and the lowest reading since January 2025. The five-year view ticked up slightly to 3.4%, but remained contained.
Lower inflation expectations helped ease concerns about tighter financial conditions and supported equity valuations. Survey details showed sentiment improving most among households with larger stock portfolios, aligning with Friday’s equity rally.
FAQs:
Why did Nvidia (NVDA) lead the market rebound today?Nvidia shares surged 7.37% to $184.55 as global chip demand signals turned overwhelmingly positive. A key supplier, Wistron, confirmed accelerating AI orders for 2026, while the Semiconductor Industry Association projected global chip sales could hit $1 trillion this year. This data-driven optimism suggests that Nvidia’s high-end GPUs remain the indispensable backbone of the AI era.
What caused Amazon (AMZN) shares to plunge nearly 8%?
Amazon became the day's major outlier, dropping $17.50 to $205.19 following its Q4 earnings report. While revenue hit $213.4 billion, investors were rattled by a massive $200 billion capital expenditure plan for 2026. This aggressive spending on AI infrastructure raised immediate concerns about near-term free cash flow and potential margin compression.
Why did Stellantis (STLA) suffer a record 24.5% crash?
Stellantis stock cratered to $7.21 after the automaker announced a staggering $26.5 billion restructuring charge. The company is executing a "Great EV Reset," pivoting back to internal combustion engines and hybrids due to cooling electric vehicle demand. To preserve liquidity during this strategic shift, the board also took the drastic step of suspending the 2026 dividend.
What triggered the 32.5% explosion in SunOpta (STKL) stock?
SunOpta shares skyrocketed to $6.40 following the announcement of a definitive agreement to be acquired by Refresco. The all-cash deal, valued at $6.50 per share, will turn the plant-based beverage provider into a private subsidiary by Q2 2026. This strategic acquisition validates SunOpta’s growth in the "better-for-you" food space and provided a massive payday for current shareholders.
How did Bitcoin’s recovery impact crypto stocks like MARA Holdings?
MARA Holdings jumped 20.06% to $8.08 as Bitcoin reclaimed the $70,000 level after a volatile week. This rebound eased "risk-off" fears that had previously sent the stock down nearly 19% in a single session. The stabilization in digital assets provided a necessary boost to the broader "Fear Gauge" (VIX), which dropped below 20, signaling a return of retail investor confidence.