Pre-Market Stock Futures:
Futures are trading mixed this morning after a dreadful day across Wall Street, with all major indices closing lower except the Russell 2000. What began in late December and has gained considerable traction recently is the narrative of a broad rotation out of technology stocks. For the last three years, technology stocks, led by the Magnificent 7, have marched the S&P 500 to three consecutive years of double-digit gains. We are likely to see a continuation of the rotation trade through the rest of the first quarter. The Nasdaq took the biggest hit on Tuesday, falling 1.43% to 23,255. The Dow Jones Industrials finished the session at 49,230, down 0.43%, while the S&P 500 was last seen at 6,917, down 0.84%. The small-cap Russell 2000 was the only winner Tuesday, closing up 0.31% at 2,648.
Treasury Bonds:
Yields were mixed across the treasury curve following a rough Monday that got February off on the wrong foot. Buyers came in on Tuesday for bonds with maturities of 5 to 30 years, while sellers focused on T-bills. Despite robust economic data, the ISM Manufacturing Purchasing Managers’ Index (PMI) for January 2026 came in at 52.6, indicating expansion and exceeding expectations, suggesting the economy might not require rapid rate cuts. Bonds still traded higher into the close. The 30-year-long bond closed Tuesday at 4.90%, while the benchmark 10-year note ended the session at 4.27%.
Oil and Gas:
Prices were higher across the energy complex on Tuesday as geopolitical tensions returned after an incident involving an Iranian drone reignited concerns about a potential Strait of Hormuz closure. Traders were also very optimistic about the new trade deal with India, which could drive demand. Brent Crude finished the day at $67.89, up 2.4%, while West Texas Intermediate closed at $63.80, up 2.40%. Natural gas also had a solid day, closing 4.17% higher at $3.37.
Gold:
Gold continued its rebound from one of the worst and fastest-selling sprees we have seen in some time. A resounding chorus of “Buy the Dip” came from all corners of Wall Street, and with good reason. Investors late to the gold trade can buy at some of the lowest prices since last fall. The final print for Gold came in at $4,945, up 6.6%, while Silver also rallied, closing Tuesday at $85.65, up 7.47%.
Crypto:
The crypto markets once again experienced high volatility and a continued, intense sell-off, with Bitcoin plunging at one point to levels not seen since November 2024 before attempting a partial recovery in the afternoon. At one point, Bitcoin fell to $72,800–$73,000 during the day, dropping over 6% at its lowest point. Top trades and analysts noted that the crypto market was pressured by over $2.5 billion in leveraged position liquidations over the weekend and early Tuesday.
24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock.
Here are some of the top Wall Street analyst upgrades, downgrades, and initiations on Wednesday, February 4, 2026.
Upgrades:
- Airbnb Inc. (NASDAQ: ABNB) was upgraded to Outperform from Market Perform at Citizens with a $160 price target.
- Cloudflare Inc. (NYSE: NET | NET Price Prediction) was raised to Buy from Neutral at BTIG with a $199 target price objective.
- Devon Energy Corp. (NYSE: DVN) was upgraded to Overweight from Equal Weight at Barclays, which lifted the target price for the stock to $50 from $42.
- Lumentum Holdings Inc. (NASDAQ: LITE) was raised to Buy from Neutral at B. Riley, which raised the target price for the stock to $526 from $147.
- PayPal Holdings Inc. (NASDAQ: PYPL) was upgraded to Neutral from Sell at Compass Point, which trimmed the target price for the stock to $51 from $55.
Downgrades:
- AES Corp. (NYSE: AES) was downgraded to Equal Weight from Overweight at Barclays, with a $15 target price.
- Alpha Metallurgical Resources Inc. (NYSE: AMR) was cut to Neutral from Buy at B.Riley, with a $203 target price.
- Himax Inc. (NASDAQ: HIMX) was downgraded to Equal Weight from Overweight at Morgan Stanley with an $8 target price.
- Transdigm Group Inc. (NYSE: TDG) was cut to Neutral from Outperform at Baird, which slashed the target price for the stock to $1,400 from $1,650.
- Webster Financial Corp. (NYSE: WBS) was downgraded to Sector Perform from Outperform at RBC Capital, which bumped the target price for the shares to $75 from $72.
Initiations:
- CTO Realty Growth Inc. (NYSE: CTO) was initiated with an Overweight rating at Cantor Fitzgerald, with a $20 target price.
- Kontoor Brands Inc. (NYSE: KTB) was initiated with a Hold rating at Jefferies with a $65 target price.
- Levi Strauss & Co. (NYSE: LEVI) was initiated with a Buy rating at Jefferies with a $25 target price.
- SEI Investments Co. (NASDAQ: SEIC) was started with a Buy rating at UBS with a $115 target price.
- Verastem Inc. (NASDAQ: VSTM) was started with a Buy rating at H.C. Wainwright with a $18 target price.
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