**GLOBAL MARKET BRIEF: FEBRUARY 03, 2026** **🚨 Macro Sentiment: Fed Shift & Shutdown Jitters** Global markets are navigating a complex landscape dominated by political shifts and monetary policy uncertainty. The nomination of **Kevin Warsh** as the next Federal Reserve Chair has triggered a Dollar rally, as investors price in a potentially more hawkish stance compared to the Powell era. Simultaneously, a partial **US government shutdown** is disrupting the release of key economic indicators, including critical jobs data, leaving the market temporarily flying blind. **📉 Equities: AI Doubts Weigh on Tech** US indices are facing headwinds as scrutiny over Artificial Intelligence capital expenditure intensifies. * **S&P 500 & Nasdaq:** Futures are sliding, driven by renewed skepticism regarding the immediate ROI of massive AI infrastructure spending. * **Global Performance:** European stocks (DAX, FTSE) are attempting to stabilize, while Asian markets show mixed results. Japan's Nikkei remains volatile amid shifting currency dynamics. **₿ Crypto: Bearish Breakout** Digital assets are under significant pressure, erasing recent gains as capital inflows stall. * **Bitcoin (BTC):** Has broken major support, trading below the psychological **$80,000** level (currently ~$78,726). * **Ethereum (ETH):** Struggling near **$2,166**, weighing heavily on the broader altcoin market. * **Solana (SOL):** Dropped below $100 for the first time in nearly 300 days. * **Trend:** Institutional selling and a "risk-off" environment are driving the current correction, with analysts eyeing the $70k–$74k zone for potential support. **🛢 Commodities: Volatility Spikes** The commodities sector is reacting violently to geopolitical updates and the stronger Dollar. * **Gold:** After a steep sell-off, prices have rebounded sharply, climbing **3%** to trade around **$4,921/oz**. Volatility is higher than Bitcoin in recent sessions. * **Silver:** Up over 10% on the day to **$87.54**, recovering from a near-month low. * **Oil:** Crude prices have plunged **5%** (Brent ~$65.62, WTI ~$61.56). The drop follows reports of de-escalating tensions between the US and Iran, alongside a new trade deal announcement between the US and India involving Russian oil restrictions. **📅 Key Watchlist** * **Central Banks:** Reserve Bank of Australia (RBA) interest rate decision is the immediate focus for APAC traders. * **US Fiscal:** Updates on the government funding impasse will drive short-term sentiment. * **Earnings:** Continued focus on Mega-cap Tech earnings to gauge the durability of the AI trade. **Summary:** Investors should brace for elevated volatility across all asset classes as the market digests the "Warsh Fed" regime change and ongoing fiscal dysfunction in Washington. Cash preservation and hedging strategies are currently favored over aggressive risk-taking.