Technology Shares Power Nasdaq Gains as Dow Jones Pauses Record Run

Technology Shares Power Nasdaq Gains as Dow Jones Pauses Record Run

2026-02-09 economy

New York, Monday, 9 February 2026.
Renewed interest in tech stocks lifted the Nasdaq 1% Monday, contrasting a flat Dow, while Japan’s Nikkei surged nearly 4% following Prime Minister Takaichi’s historic supermajority election victory.

Market Divergence: Tech Leads as Blue Chips Pause

On Monday, February 9, 2026, the United States equity markets demonstrated a clear sectoral divergence. While the technology-heavy Nasdaq Composite advanced 1% and the S&P 500 gained 0.6%, the Dow Jones Industrial Average remained largely flat, though it managed to set an intraday all-time record for a second consecutive session [1]. The S&P 500 Information Technology Sector emerged as the day’s top performer, rising 1.4%, signaling a rotation back into growth equities [1]. This movement follows a dramatic session on Friday, February 6, where the Dow surged over 1,200 points to cross the 50,000 threshold for the first time in history [1]. While the broader market momentum appears intact, investors are currently favoring tech assets over the industrial heavyweights that drove the previous week’s rally.

Tech Sector Resurgence and Corporate Movers

The rally was underpinned by significant gains in key technology and software names. AppLovin and Oracle led the charge within the S&P 500, posting gains of 14% and 9.5%, respectively [1]. Among the Dow components, Nvidia and Microsoft provided support, rising 3% and 2.5% [1]. This renewed enthusiasm comes despite recent concerns regarding “AI fatigue,” suggesting that investors are still willing to capitalize on growth opportunities in the semiconductor and software spaces [6]. However, the sentiment was not universally positive across the software landscape; Monday.com shares fell 15% following the release of weaker-than-expected financial guidance [1]. Specifically, the company projected fiscal 2026 first-quarter revenue between $338 million and $340 million, which failed to meet market expectations [1].

Pharmaceutical and Energy Sector Volatility

Outside of the technology sector, specific corporate developments triggered sharp volatility. Shares of Hims & Hers Health plummeted 26.9% after the company announced it would discontinue its compounded semaglutide pill, a copycat of the popular weight-loss drug Wegovy [5]. This decision coincided with a lawsuit filed by Novo Nordisk on Monday, seeking to ban the sale of the unapproved drugs and claiming damages; conversely, Novo Nordisk’s stock rose 3% [1]. In the energy sector, consolidation activity made headlines as Transocean announced an all-stock deal to acquire Valaris valued at $5.8 billion [5]. While Transocean shares slipped 0.8% on the news, Valaris stock leaped 22.5%, reflecting shareholder approval of the acquisition premium [5].

Japanese Politics Ignite Asian Markets

Global markets were buoyed earlier in the day by a massive rally in Japan. The Nikkei 225 surged 3.9% to close at 56,363.94, following a historic election victory for Prime Minister Sanae Takaichi [3]. Her Liberal Democratic Party (LDP) secured 316 seats in the lower house, achieving a two-thirds supermajority that analysts believe will pave the way for aggressive fiscal spending and tax cuts [2][3]. This political clarity removed a significant layer of ambiguity for traders, prompting the Nikkei to hit an intraday record of 57,337.07 [3]. The ripple effects were felt across the region, with South Korea’s Kospi gaining 4.1% and Hong Kong’s Hang Seng rising 1.8% [2][3].

In the commodities and cryptocurrency markets, asset prices reflected the broader risk-on sentiment. Gold futures climbed approximately 2.5% to trade near $5,100 an ounce, while silver futures saw a substantial increase of 7.5%, reaching nearly $83 an ounce [1]. Bitcoin also showed resilience, trading around $69,500 after recovering from a dip to nearly $60,000 the previous Friday [1]. The cryptocurrency had reached an overnight high of $72,200 before settling lower during the US trading session [1]. These movements suggest that despite the pause in the Dow’s upward trajectory, liquidity continues to flow into diverse asset classes ranging from precious metals to digital currencies.

Sources


Stock Market Technology Sector