February 5, 2026: Market Selloff on AI Impact, Amazon $200B Spending Plan, More
episodePreviously titled “Market Selloff on AI Impact, Amazon $200B Spending Plan, More” — renamed by the publisher on Aug 2, 2026
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What is the main topic discussed in this episode?
The UK stands apart as a place to do business, not because of one advantage, but many working together. Over £10 trillion in capital, four of the world's top universities, a 10-year industrial strategy in action, its stability with dynamism, global reach with local depth. It all adds up to greater growth. Find out more at business.gov.uk slash growth.
News when you want it with Bloomberg News Now, I'm Doug Krisner. And we begin with the stock market, where it was another day of heavy selling in software shares, given worries over the impact of AI. A new version of Anthropic's most powerful AI model can carry out financial research. It's also designed to be better at a range of other work-related functions, and that would include making spreadsheets and presentations, as well as software development. Today, the S&P 500 Software and Services Subindex fell by more than 4.5%. After the bell, Amazon's first quarter outlook was below consensus, and the company said it intends to spend $200 billion this year on data centers, chips, and other equipment.
Now, the market is suspecting that Amazon's massive bet on AI will take longer to pay off than anticipated. Here is Bloomberg analyst Poonam Goyal.
They need to invest, right? We know that Amazon has to continue to invest in cloud services. It needs to invest in AI. So there's a lot of catch-up that needs to be done here. I think the long run narrative here is still good. The underlying results were solid across both AWS and retail.
That is Bloomberg analyst Poonam Goyal. Shares in Amazon were down 10% in late US trading. At the same time, there was a sell-off today in Bitcoin. It tumbled below 64,000 as an unwinding of leveraged bets deepened. Bitcoin lost more than 12% during New York trading, and Nobel laureate Paul Krugman says Bitcoin is facing a real crisis of faith.
A lot of people sold Bitcoin as being the next gold. And it turns out that in the face of doubts about stability, doubts about politics, the next gold turns out to be gold, not Bitcoin. I think it's a big wake up for people that maybe this isn't actually going to be an enduring asset.
That is Nobel laureate Paul Krugman speaking on Bloomberg Businessweek Daily. Bitcoin has wiped out all of its gains since President Trump's election set off a speculative rush into cryptocurrencies. Now, Bitcoin's plunge has rocked the digital asset complex, and few companies are more exposed than the Bitcoin treasury company Strategy Inc. Today, after the bell, the company confirmed a net loss of $12.4 billion for the fourth quarter.
What are the latest trends impacting the stock market?
Shares in Strategy Inc. were down by more than 2% in late U.S. trading, but these shares have lost 45% of their value so far this year. The treaty limiting U.S. and Russian deployment of the most dangerous nuclear weapons lapsed overnight, and President Trump is renewing calls for a stronger pact instead of extending the current agreement known as the New START Treaty. Here is former Republican Congressman Patrick McHenry.
I think we haven't addressed nuclear disarmament in over a generation here in the United States. I think it's a worthwhile endeavor. I think the complexity of this administration's foreign policy is not well understood by the market. Everything is interconnected.
How is AI affecting software shares and the market?
Russia, the Middle East, China. Russia, Ukraine, Middle East, China, Canada. All the trade conversations, all the foreign policy and Department of War actions, they're all connected.
That's Patrick McHenry, former Republican congressman and Bloomberg News contributor. Meantime, the U.S. and Russia have agreed to restart high-level military contacts. They were suspended shortly after the invasion of Ukraine. Today, U.S. Treasury Secretary Scott Besson testified before the Senate Banking Committee on financial oversight. And during the hearing, Democratic Senator Elizabeth Warren asked Besson about the possibility of the Trump administration bringing a lawsuit against Fed Chair nominee Kevin Warsh if he does not lower interest rates. Now, Warren's question referenced reports over the weekend that Trump joked that
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Chapters
5 chapters
1
What is the main topic discussed in this episode?
0:00–2:46
2
What are the latest trends impacting the stock market?
2:46–3:29
3
How is AI affecting software shares and the market?
3:29–4:48
4
What is Amazon's $200 billion spending plan focused on?
4:48–5:26
5
Why are investors skeptical about Amazon's AI investments?
5:26–7:17
Speakers
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