US stocks open mixed: Nasdaq slips 0.4%, Dow up 180 points

US equities declined on Tuesday as Wall Street struggled to regain momentum following another losing week, with technology and software stocks leading early weakness and keeping investor sentiment fragile.

The S&P 500 fell 0.2%, while the Nasdaq Composite dropped 0.7%.

In contrast, the Dow Jones Industrial Average outperformed, rising 180 points, or about 0.4%.

Markets reopened after the Presidents’ Day holiday, when the New York Stock Exchange was closed on Monday.

Technology stocks lead early declines

Losses were concentrated in major technology and semiconductor names.

Shares of Meta Platforms and Nvidia slipped around 0.4% each, while Palantir Technologies fell more than 2%.

Memory chipmakers that have been strong performers this year also came under pressure.

Micron Technology and SanDisk traded lower in early dealings.

The weakness was particularly pronounced in software-related stocks.

The iShares Expanded Tech-Software Sector ETF fell 0.7%, pushing its year-to-date decline to about 22%. Shares of Autodesk also moved lower.

Concerns that artificial intelligence tools could displace traditional, industry-specific software providers have continued to weigh on the sector.

Losing streak extends across major indexes

Tuesday’s performance followed a challenging stretch for US equities.

The S&P 500 and the Dow both recorded their fourth losing weeks in the past five, while the Nasdaq posted its fifth consecutive weekly decline, marking its longest losing streak since 2022.

Last week, the S&P 500 and the Dow each fell more than 1%, while the Nasdaq dropped over 2%.

Fears surrounding artificial intelligence disruption have contributed to weakness across several industries, including software, real estate, trucking, and financial services.

These concerns have largely overshadowed recent economic data.

The January consumer price index released on Friday came in softer than economists surveyed by Dow Jones had expected. That followed a stronger-than-anticipated jobs report earlier in the week.

Focus shifts to inflation and Fed signals

Investors are now turning their attention to upcoming economic releases for further clarity on inflation and monetary policy.

The personal consumption expenditures report, the Federal Reserve’s preferred inflation gauge, is due on Friday.

Before that, traders will review minutes from the latest Federal Reserve meeting, scheduled for release on Wednesday.

The combination of mixed economic signals and persistent sector-specific pressures has made it difficult for markets to establish a sustained upward trend.

Notable movers on Tuesday

Outside of technology, several individual stocks drew attention.

Shares of Warner Bros. Discovery and Paramount Skydance rose after Netflix granted Warner Bros. Discovery a seven-day waiver to hold deal talks with Paramount.

Warner Bros. Discovery gained about 2.4%, while Paramount jumped nearly 4%.

In the healthcare sector, Masimo surged more than 33% after reports from The Wall Street Journal and the Financial Times said the company was nearing a deal to be acquired by Danaher for $180 per share, or about $10 billion in cash.

Danaher shares fell more than 7% following the reports.

Market volatility remained high. The CBOE Volatility Index, commonly known as Wall Street’s “fear gauge,” climbed above the 20 level, reaching 22.50 on Tuesday.

The index had been trading near 17 at the start of last week.

Elevated volatility reflects ongoing uncertainty around earnings, economic data, and the impact of artificial intelligence across multiple sectors.