**Global Market Brief | February 4, 2026** **US Markets Slide as Tech Falters** Wall Street faced significant headwinds on Tuesday, with major indices pulling back as investors rotated out of the technology sector. The **S&P 500** declined by **0.84%** to settle at **6,917.81**, while the tech-heavy **Nasdaq Composite** took a harder hit, dropping **1.43%** to **23,255.19**. The **Dow Jones Industrial Average** also retreated, shedding approximately **166 points** (**-0.34%**) to close at **49,240.99**. Market volatility is visibly rising, with the **VIX** spiking over **10%** to reach **18.00**, signaling growing investor unease amidst a flood of corporate earnings and macroeconomic uncertainty. **Tech Sector Under Pressure** The "Magnificent" tech giants dragged market sentiment lower. **Nvidia** slipped nearly **3%**, and **Microsoft** fell **1.6%**, reflecting broader concerns over valuation and capital expenditure in the AI space. Conversely, **Palantir** surged over **6%**, bucking the trend, while **Disney** faced a sharp selloff of roughly **7.4%**. **ASX 200 Defies Rate Hike** In the Asia-Pacific region, the Australian market showed resilience. The **S&P/ASX 200** gained **0.89%** to close at **8,857.1** (with intraday trading pushing above **8,930** on Wednesday). This positive performance came despite the **Reserve Bank of Australia (RBA)** delivering its first interest rate hike in two years. The central bank raised the cash rate by **25 basis points** to **3.85%**, citing reaccelerating inflation. Investors largely shrugged off the tightening, buoyed by strength in the mining and banking sectors. **Commodities: Precious Metals Rebound** After a period of extreme volatility, precious metals staged a convincing recovery. **Gold** prices climbed back above the **$5,000** mark, trading near **$5,047 per ounce**, a gain of roughly **2%**. **Silver** also saw strong buying interest, rebounding to approximately **$87.46**. Energy markets remain soft but stable. **Brent Crude** hovered around **$67.90** per barrel, while **WTI** traded near **$63.79**. Oil prices have been capped by easing geopolitical fears and demand concerns, though they have stabilized following earlier steep declines. **Key Macro Drivers** **Federal Reserve Leadership:** Markets are digesting President Trump's nomination of **Kevin Warsh** as the next Federal Reserve Chair. Viewed as a "hawk," his nomination has prompted a recalibration of rate cut expectations. **Data Delays:** A partial US government shutdown is complicating the economic picture, causing delays in critical labor data releases, including the highly anticipated non-farm payrolls report. **Geopolitics:** Tensions between the US and Iran remain a focal point, though recent diplomatic talks have slightly eased immediate fears of supply disruptions, keeping a lid on oil price spikes. **Outlook** Investors should brace for continued choppiness as the market processes the dual headwinds of a hawkish Fed pivot and mixed corporate earnings. With volatility indices rising and critical economic data delayed, near-term visibility remains low.