US stocks end with losses amid tech selloff

By Mucahithan Avcioglu

ISTANBUL (AA) - US stocks ended with losses Tuesday as tech stocks posted major declines.

The Dow Jones Industrial Average fell 0.34%, or 166.67 points, to end at 49,240.99.

The Nasdaq sank 1.43%, or 336.92 points, to 23,255.19, and the S&P 500 lost 0.84%, or 58.63 points, to 6,917.81.

The Volatility Index (VIX), also known as the "fear index,” climbed 10.16% to 18 points.

Most of the "Magnificent Seven" companies that have released earnings so far saw declines, including Microsoft and Meta, which were down 2.9% and 2.1% respectively. Nvidia also saw a 2.8% decline.

Software stocks also continued to decline in 2026, with shares of companies like Salesforce falling 6.9% and ServiceNow down 7%.

On the other hand, Palantir's stock surged 6.9% following the defense technology company's positive guidance and impressive fourth-quarter financial results.

Walmart's stock increased by 3% on Tuesday, surpassing the $1 trillion market capitalization mark due to developments in its digital operations and customer acquisition. PepsiCo's stock also rose 5% after reporting upbeat earnings and improved organic sales.

Meanwhile, US President Donald Trump signed a bill Tuesday to reopen the government, which was partially shut down on Saturday.

Earlier, the House of Representatives passed a package that includes five long-term appropriations bills while extending funding for the Department of Homeland Security (DHS) for around two weeks to allow negotiations on immigration enforcement.

Statements from Fed officials were also monitored. Thomas Barkin, president of the Richmond Federal Reserve Bank, said Tuesday that the central bank still needs to do more to bring inflation back down to a manageable level.

Barkin told an audience in Columbia, South Carolina that he sees inflation and the labor market moving lower but still above target, but he did not give away where he believes interest rates should go. He pointed out that "we have some distance to travel" in terms of inflation because the Fed lowered its benchmark interest rate three consecutive times last year.