15 Mutual Fund Smallcap Holdings Decline Up to 50% in Three Months
**GLOBAL MARKET BRIEF: FEBRUARY 03, 2026**
**MARKET PULSE: TRADE OPTIMISM & VOLATILITY**
Global equities surged Tuesday, driven by a breakthrough trade agreement between the **US and India**, which slashed tariffs and resolved energy trade disputes. The deal eclipsed lingering concerns over a partial US government shutdown. Meanwhile, commodities remained highly volatile, with gold staging a massive rebound and oil prices sliding on geopolitical de-escalation.
**EQUITY MARKETS**
**United States**
Wall Street rallied on earnings strength and trade clarity.
* **Dow Jones:** **49,407** (+1.1%)
* **S&P 500:** **6,976** (+0.5%)
* **Nasdaq:** **23,592** (+0.6%)
* **Sector Highlights:** Technology and Consumer Staples led the advance. **Oracle** fell **~3%** on capital raise news, while **Nvidia** dipped **~2.5%** amid reports of stalled investments in OpenAI.
**Asia & Global**
Indian markets posted historic single-day gains following the US trade deal announcement (tariffs cut to **18%**).
* **Nifty 50:** **25,727** (+4.9%)
* **Sensex:** **85,871** (+5.1%)
* **Nikkei 225 (Japan):** **54,045** (+2.6%)
**COMMODITIES & CRYPTO**
**Precious Metals**
Gold witnessed extreme volatility, rebounding sharply after Monday's sell-off.
* **Gold Spot:** **~$4,926/oz** (+5.1% intraday)
* **Silver:** **~$88/oz** (+11.3%)
**Energy**
Oil prices retreated as the US-India deal reduced demand-side friction and geopolitical risk premiums eased.
* **Brent Crude:** **~$66.70** (-0.6%)
* **WTI Crude:** **~$62.60** (-0.8%)
**Cryptocurrency**
Digital assets stabilized as buyers stepped in at lower levels.
* **Bitcoin:** **~$78,750** (Recovering from sub-$78k lows)
**KEY MARKET DRIVERS**
* **US-India Trade Pact:** The **White House** confirmed a deal reducing reciprocal tariffs on Indian goods to **18%** in exchange for India halting Russian oil purchases. This sparked a massive risk-on rally in emerging markets.
* **Macro Data:** US manufacturing activity expanded for the first time in 12 months, signaling economic resilience despite the partial government shutdown.
* **Earnings Watch:** Investors are closely monitoring ongoing tech earnings to gauge if AI-driven capex (e.g., Oracle's **$50B** raise) is sustainable.