NEW YORK, Feb. 3 (Xinhua) -- U.S. stocks ended lower on Tuesday as a sharp retreat in technology shares and disappointing results from the payments sector overshadowed progress in Washington, D.C. to end the partial government shutdown.
The Dow Jones Industrial Average fell by 166.67 points, or 0.34 percent, to 49,240.99. The S&P 500 sank 58.63 points, or 0.84 percent, to 6,917.81. The Nasdaq Composite Index shed 336.92 points, or 1.43 percent, to 23,255.19.
Six of the 11 primary S&P 500 sectors ended in red, with technology and communication services leading the laggards by dropping 2.17 percent and 1.28 percent, respectively. Energy and materials led the gainers by rising 3.29 percent and 2 percent, respectively.
Despite a strong quarterly report from Palantir, which initially signaled continued momentum for the sector, market sentiment soured as the session progressed. Most "Magnificent Seven" stocks declined, with Nvidia falling 2.84 percent amid reports of cooling relations with OpenAI, although OpenAI CEO Sam Altman backed its partnership with Nvidia.
Software stocks faced a broad sell-off, exacerbated by the release of a new legal productivity tool from Anthropic, which raised concerns about disruption to established software business models. Amazon and Microsoft both recorded notable losses, while market participants turned their attention to after-hours results from AMD and upcoming reports from Alphabet to gauge potential overspending in the sector.
In the financial and entertainment industries, PayPal plummeted over 20 percent after missing fourth-quarter estimates and announcing that former HP boss Enrique Lores will take over as CEO on March 1. The Walt Disney Company also announced a leadership transition, naming Josh D'Amaro as its next CEO to succeed Bob Iger on March 18, 2026. Despite the clarity on succession, Disney shares fell 0.22 percent as part of the broader market volatility.
The healthcare sector saw a significant decline in Novo Nordisk, whose U.S.-listed shares dived 14.64 percent on projections of declining 2026 sales due to U.S. pricing pressures. Walmart provided a rare bright spot for the market, with shares rising nearly 3 percent to join the exclusive group of companies with a market capitalization exceeding 1 trillion U.S. dollars.
On the political front, the U.S. House of Representatives narrowly passed a 1.2-trillion-dollar funding package in a 217-214 vote, effectively ending the three-day partial government shutdown.
In the commodities and bond markets, gold and silver futures rebounded on Tuesday as traders adjusted positions following a recent run-up.
