Market Brief: February 4, 2026 📉 Global Indices & Equity Performance Global markets face a wave of volatility as investors digest mixed economic signals and rotate out of high-flying tech stocks. * **United States:** Wall Street closed lower Tuesday (Feb 3). The **Nasdaq Composite** led the decline, dropping **1.43%** to **23,255**, pressured by heavy selling in the technology sector. The **S&P 500** fell **0.84%** to **6,917**, while the **Dow Jones Industrial Average** shed **0.34%** to **49,240**. Volatility spiked, with the **VIX** jumping over **10%** to **18.00**. * **Europe:** Indices struggled for direction. The **FTSE 100** (UK) dipped **0.26%** to **10,314**, and the **DAX** (Germany) slipped marginally to **24,780**. * **Asia:** Markets opened mixed on Wednesday. Japan’s **Nikkei 225** opened down **0.86%** at **54,250**, tracking US tech weakness. Australia’s **ASX 200** bucked the trend, rising **0.47%**. 🛠 Sector Spotlight: AI & Semiconductors The "AI trade" is shifting rather than stalling. While major chipmakers like **Nvidia** saw profit-taking (down **~2.8%**), infrastructure and custom-chip players are surging. * **Teradyne** crushed Q4 earnings expectations with a **44%** revenue jump, proving that demand for AI testing equipment is accelerating. * **Broadcom** and **TSMC** continue to outperform, driven by hyperscalers (Amazon, Meta, Google) building custom silicon, diversifying the market beyond standard GPUs. 🛢 Commodities & Currencies * **Oil:** Prices retreated sharply on signs of potential geopolitical de-escalation in the Middle East. **WTI Crude** fell **~2.5%** to **$61.78**, and **Brent** dropped to **$66.50**. * **Metals:** Precious metals experienced wild swings. **Gold** plunged briefly before settling near **$4,650**, down **~2%**. **Copper** was a bright spot, rebounding **4%** on news of China expanding strategic reserves. * **Crypto:** Digital assets remain under pressure. **Bitcoin** tested lows around **$73,100**, correcting significantly from its January levels, as regulatory uncertainty and macro headwinds weigh on sentiment. 🏦 Macroeconomic Backdrop * **Fed Policy:** The Federal Reserve held the benchmark rate steady at **3.50%–3.75%** in its recent meeting. Inflation remains sticky, complicating the path for future cuts despite political pressure. * **Economic Data:** US manufacturing is showing resilience, with the latest PMI inching up to **50.9**, signaling modest expansion. However, rising industrial input prices are a renewed concern for inflation watchers. 📅 What to Watch * **Earnings:** Continued focus on tech supply chain earnings to gauge AI capital expenditure durability. * **Geopolitics:** Ongoing US-Iran talks and their immediate impact on energy markets. * **Data:** Upcoming labor market reports to confirm if the "no-landing" economic scenario holds.