**GLOBAL MARKET BRIEF: FEBRUARY 3, 2026** **🇺🇸 US MARKETS: RECORD HIGHS & SECTOR ROTATION** Wall Street kicked off February with strong momentum. The **Dow Jones Industrial Average** surged **1.05%** to close at **49,407**, driven by defensive plays and specific tech strength. The **S&P 500** climbed **0.54%** to **6,976**, putting it within striking distance of the psychological 7,000 mark. The tech-heavy **Nasdaq Composite** added **0.56%**, ending at **23,592**. * **Sector Divergence:** While tech and auto stocks rallied on earnings, the healthcare sector faced severe headwinds. Major insurers like **UnitedHealth** and **CVS Health** plummeted (some losing nearly **16%**) after the administration proposed a lower-than-expected **1%** increase in Medicare Advantage payments for 2027. * **Earnings Focus:** Investors are digesting a mixed bag of corporate results, with doubts surfacing around the sustainability of massive AI capital expenditures by mega-cap tech firms. **🇮🇳 INDIAN MARKETS: PRE-BUDGET NERVES & TRADE DEALS** Indian equities remain volatile as the Union Budget approaches. The **Nifty 50** slipped below **25,300** (trading around **25,274**), and the **Sensex** shed over **500 points** to hover near **82,056**. * **Trade Deal Catalyst:** Sentiment is being partially cushioned by the announcement of a landmark **US-India trade deal**, with tariffs on Indian goods reportedly reduced to **18%**. This follows the "mother of all deals" free trade agreement concluded with the EU earlier this week. * **FII Flows:** Foreign Portfolio Investors (FPIs) remain net sellers, offloading nearly **₹4,100 crore** in recent sessions, though domestic institutions continue to buy the dip. **🛢 COMMODITIES: OIL SLUMPS ON GEOPOLITICS** Crude prices took a sharp hit as geopolitical risk premiums evaporated. **WTI Crude** tumbled over **5%** to trade near **$61.72** per barrel, while **Brent** hovered around **$65.90**. * **Geopolitics:** The sell-off was triggered by reports of renewed diplomatic talks between the **US and Iran**, de-escalating fears of immediate supply disruptions in the Middle East. * **Precious Metals:** Gold and silver remained volatile, with gold facing rejection at higher supply zones. Market chatter indicates a "risk-on" shift as traders look past safe havens. **₿ CRYPTO: BITCOIN UNDER PRESSURE** The crypto market is facing a rough patch, with **Bitcoin** reportedly trading near a **10-month low**. ETF outflows and a general rotation into traditional equities are weighing on digital assets, with the **iShares Bitcoin Trust** seeing notable declines. **📅 KEY EVENTS WATCH** * **Central Bank Policy:** All eyes are on the upcoming Federal Reserve interest rate decision. * **Macro Data:** Manufacturing data and monthly jobs reports (NFP) due later this week will be critical for sustaining the equity rally. * **India Budget:** The Union Budget presentation on Feb 1 remains the primary driver for INR assets this week.