The Daily Breakdown takes a closer look at the weakness in tech, as other sectors continue to shine the early parts of 2026.
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What’s Happening?
Wall Street was hit with a volatility spike on Thursday, weighing on several asset classes. Silver sank more than 10%, gold slipped about 3%, and Bitcoin edged lower. Equities also struggled: the Russell 2000 and Nasdaq 100 each fell roughly 2%, while the Dow and S&P 500 declined 1.3% and 1.5%, respectively.
Beneath the surface, leadership was narrow. Utilities extended their recent momentum, rising 1.5%, while staples and real estate managed modest gains. On the downside, energy, financials, and tech led the retreat, with tech down 2.6%. Semiconductors and software were weak, too.
Inflation on Tap
Friday brings the January CPI report, the market’s next key inflation update. Consensus expects headline CPI to rise 2.5% year over year, down from 2.7% last month. A hotter-than-expected print, paired with the stronger jobs report, could reinforce the case for the Fed to stay on hold. An in-line or softer reading, however, may revive expectations for a more dovish shift once a new chair is in place.
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The Setup — JPMorgan
After a strong 2025, when JPMorgan gained more than 34%, the stock has stumbled in early 2026, down about 6%. Support has been materializing in the $290 to $300 zone:
Bulls are hoping that JPM continues to find support in this range, alongside the rising 200-day moving average. Bears are hoping that support breaks, potentially ushering in more downside momentum.
Options
Investors who are bullish could consider calls or call spreads as one way to speculate on further upside, while bearish investors could consider puts or put spreads to speculate on a further move to the downside. For options traders, it may be advantageous to have adequate time until the option’s expiration.
To learn more about options, consider visiting the eToro Academy.
What Wall Street’s Watching
ANET
Arista Networks surged in after-hours trading, up more than 15% at one point following its earnings report. Revenue came in at $2.49 billion versus expectations of $2.38 billion, while EPS of $0.82 beat the $0.72 consensus. Check out the charts for ANET.
AAPL
Apple was the worst-performing Magnificent 7 name on Thursday, falling 5%. Even the group’s top-performing stocks struggled on the day, with Microsoft and Alphabet each down 0.6%. Apple’s decline came on reports that its AI-driven Siri launch will be delayed. Dig into the fundamentals for AAPL.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.