Katherine Sullivan

U.S.

stocks fell today as new artificial intelligence tools sparked a sell-off in technology shares.

The Nasdaq led the declines with a 1.4% drop, while the S&P 500 was down 0.8% and the Dow was down 0.3%.

Investors worried that a new product from Anthropic could threaten the software industry.

Data service providers and legal publishers saw their share prices slump during the session.

Private fund managers with heavy software bets also experienced significant losses.

Among individual companies, PayPal shares plummeted 20 percent today.

The payments firm warned that its earnings will likely decline this year.

Gartner stock tumbled 21% after the research company reported lower quarterly earnings.

Its financial guidance for the year also fell short of analysts' expectations.

DaVita shares surged 21% following a strong quarterly performance.

And Palantir shares jumped nearly 7%.

The move followed the release of strong financial results late Monday, even as the company comes under scrutiny for its role in President Trump's immigration agenda.

Heads up, an artificial intelligence tool helped us make this episode by creating summaries that were based on WSJ reporting and then reviewed and adapted by an editor.

We'll have a lot more coverage of the day's news on the WSJ's What's News podcast.

You can add it to your playlist on your smart speaker or listen and subscribe wherever you get your podcasts.

Here's your Closing Bell Brief for Monday, February 2nd.

I'm Katherine Sullivan for The Wall Street Journal.

U.S.

stocks rose today to kick off the new month of trading.