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U.S. Stocks Fall as Tech Declines and Investors Await Alphabet Results

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21Shares Introduces JitoSOL ETP to Offer Staking Rewards via Solana

TLDR

  • U.S. stocks showed mixed performance as investors awaited Alphabet’s earnings results.
  • The Nasdaq Composite dropped over one percent while the Dow Jones gained slightly.
  • Private payrolls in the U.S. rose by only twenty-two thousand in January.
  • Tech stocks, including Alphabet, Meta, and Tesla, traded lower during the session.
  • AMD shares plunged despite reporting strong fourth-quarter results and guidance.

U.S. stocks traded mixed on Wednesday, as technology shares declined sharply, job data disappointed, and investors braced for Alphabet’s earnings. The Nasdaq Composite fell by over 1%, while the S&P 500 edged lower and the Dow gained. Markets responded to underwhelming private job figures and shifts in investor sentiment toward big tech.

Alphabet Earnings Loom as Tech Stocks Drop

Alphabet shares declined along with other large-cap tech names such as Tesla, Meta, and Nvidia during midday trading. Investors reduced exposure ahead of the company’s upcoming earnings release, which remains highly anticipated. Despite no major earnings warning, selling pressure increased across the tech-heavy Nasdaq index.

“Speculators have entered the market. The problem is that the construction of data centers includes very few people,” said Diane Swonk. Her comment underscored concerns that AI infrastructure growth isn’t contributing meaningfully to job creation. Alphabet’s performance will likely influence market direction into the end of the week.

While optimism remains around 2026–2027 profit expectations, immediate investor focus shifted to Q4 performance. Concerns about slower growth and earnings multiples pressured valuations across the Magnificent Seven. Meta, Nvidia, and Tesla were all trading lower in line with Alphabet’s downward movement.

U.S. stocks mixed after weak job gains

The S&P 500 dropped by 0.3%, the Nasdaq Composite fell 1.2%, and the Dow Jones Industrial Average rose 0.7%. U.S. stocks reacted quickly to January’s private payrolls data, which showed only 22,000 jobs were added, well below forecasts. ADP revised December’s numbers down as well, weakening optimism in labor market strength.

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Ryan Detrick from Carson Group said, “Analysts keep raising their earnings calls for 2026 and 2027,” which he noted is boosting the S&P 500. However, the weaker labor data has cast doubts on near-term momentum. The healthcare sector led hiring, while manufacturing and other sectors shed jobs.

S&P Global’s U.S. Composite PMI rose to 53.0 in January, slightly above December’s 52.7. The PMI reading exceeded expectations, suggesting some economic resilience despite job weakness. Yet investors showed more concern about employment trends than services activity growth.

AMD, Boston Scientific, and AbbVie Lead Decliners

AMD shares fell by 16%, even though the company posted earnings and guidance that surpassed Wall Street expectations. Investors appeared to focus on valuation and future growth rates rather than immediate performance. Selling intensified during the session despite the strong Q4 results.

Boston Scientific shares declined by 15.4% after it issued a 2026 outlook that did not match investor hopes. Though Q4 earnings beat estimates, future growth projections fell short. This triggered a broad reaction in the medical technology segment.

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AbbVie’s stock dropped 6.9% following its better-than-expected Q4 earnings release. The market responded negatively to guidance concerns. The pharmaceutical sector reflected broader investor caution across earnings-heavy sectors.

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WULF lower by 6% after $900 million capital raise

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WULF lower by 6% after $900 million capital raise

TeraWulf (WULF), a US data center operator focused on bitcoin mining and AI computing, saw its shares drop early Wednesday, after the company announced a $900 million capital raise.

The firm priced 47.4 million shares at $19 each. WULF is down 5.8% to $19.73 in early trading. The underwriter greenshoe option is for an additional 7 million shares.

Alongside other AI infrastructure names, WULF has been on a scorching run, rising more than 50% since late March.

The proceeds are earmarked for funding the construction of a major data center campus in Hawesville, Kentucky, alongside repaying outstanding bridge financing and supporting future expansion.

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Preliminary Q1 results

Alongside the offering, TeraWulf released preliminary first-quarter 2026 results. The company expects revenue between $30 million and $35 million. The balance sheet showed $3.1 billion in cash and $5.8 billion in total debt.

Management highlighted a growing shift toward contracted HPC hosting revenues, which now account for over half of total revenue, positioning the business for more stable, long-term cash flows.

Compass Point analyst Michael Donovan, who has a Buy rating and a $28 price target on WULF, pointed to the shift in mix toward HPC as a positive inflection point for the business, with contracted hosting revenue overtaking bitcoin mining for the first time. He also views the capital raise as a necessary step to unlock the next phase of growth. While acknowledging the dilution, he said the added funding improves visibility into the buildout of the Kentucky site, which he expects to be developed in phases based on customer demand. He added that demand for TeraWulf’s power and hosting capacity remains strong.

Looking ahead, Donovan expects the company’s revenue profile to change meaningfully as HPC scales. He forecasts that contracted hosting will become the dominant driver of revenue over the next two years, reducing reliance on bitcoin price swings and supporting a more predictable earnings stream.

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The shift reflects a broader trend across the industry, as bitcoin miners increasingly pivot toward AI and high-performance computing infrastructure to diversify revenue streams and improve margins.

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EU Adviser Says MiCA 2 Likely as Crypto Market Matures

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Europe, European Union, MiCA, Paris Blockchain Week

A European Commission adviser said the European Union’s landmark MiCA crypto regime is likely to evolve as digital asset markets develop beyond the conditions the law was originally designed to address.

Speaking at the Paris Blockchain Week (PBW) 2026, Peter Kerstens, an adviser on technological innovation, digital transformation and cybersecurity at the European Commission’s financial services department, said the Commission will review the Markets in Crypto-Assets Regulation (MiCA) and launch a public consultation to assess whether the rules are working for market participants and supporting business development.

The remarks suggest EU policymakers are already thinking about how MiCA may need to evolve as the crypto market matures. Kerstens said he could not predict the future, but added that EU financial legislation typically evolves in stages, suggesting it would be “rather unusual” if there were not a “MiCA 2” over time.

MiCA already contains a built-in review clause. The regulation requires the Commission to report on its application by June 30, 2027, and allows it to accompany that review with legislative proposals if needed, according to the Official Journal of the European Union.

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Europe, European Union, MiCA, Paris Blockchain Week
OKX global managing partner Haider Rafique (left) with Peter Kerstens (right) at the PBW 2026. Source: Cointelegraph

MiCA review signals next phase of EU crypto rules

Kerstens said the review is not a response to a broken framework, but part of an effort to ensure rules keep pace with a changing market structure. He said MiCA was designed at a time when crypto markets were dominated by a few large assets and many smaller tokens. 

He said that the ecosystem has since matured, requiring policymakers to reassess whether the framework fits in current conditions. 

Related: EU central bank backs plan for crypto supervision under EU markets watchdog

He also emphasized the role of industry feedback, saying that the Commission would begin with a public consultation with “no taboos.” Kerstens invited market participants to identify where rules should be expanded, adjusted or left unchanged. 

He warned that if regulation does not evolve alongside innovation, markets may develop around existing rules, creating legal uncertainty.  

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Kerstens’ comments come as aspects of MiCA and related frameworks are being tested in practice. On March 24, stablecoin issuer Circle urged the European Commission to adjust parts of its proposed Market Integration Package, including lowering thresholds that limit the use of euro-denominated stablecoins in settlement and expanding access for crypto-asset service providers. 

At the same time, policymakers are debating how MiCA should be implemented. On April 3, officials weighed whether to shift supervision of major crypto firms to the European Securities and Markets Authority (ESMA) amid concerns over inconsistent enforcement

Magazine: Singapore isn’t a ‘crypto hub’ — it’s something better: StraitsX CEO

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