**Global Market Brief | February 4, 2026** **Executive Summary** Markets are navigating a period of high volatility characterized by a violent rotation out of technology stocks and historic turbulence in precious metals. Geopolitical developments—specifically a new US-India trade pact and rising tensions in the Middle East—are driving sentiment alongside major US policy shifts. **US Equity Markets: Tech Rotation Intensifies** US indices remain divergent as investors flee high-growth tech for value and cyclical sectors. * **Indices:** The **Dow Jones** surged **515 points (+1.1%)** earlier this week, nearly hitting a record close. In contrast, the **Nasdaq 100** slid **1.6%**, and the **S&P 500** dipped **0.8%** amid a tech selloff. * **Tech Under Pressure:** Software stocks faced aggressive selling (down **~4%** broadly). **Nvidia** fell **3%** on news of stalled OpenAI investments. **Oracle** dropped **2.8%** after announcing a massive **$45–$50 billion** capital raise. **Adobe** and **ServiceNow** saw declines of roughly **7–8%**. * **Bright Spots:** **Walmart** defied the trend, surpassing a **$1 trillion** market cap. **Global & Emerging Markets** * **India Rally:** Indian markets (Sensex and Nifty) rallied sharply on Feb 4, fueled by a new trade deal with the US. Key terms include the US lowering tariffs on Indian goods to **18%** (from 25%) in exchange for India halting Russian oil purchases. * **Asia:** Markets were mixed, with South Korea’s Kospi tracking higher while indices in Japan and China faced headwinds from the global tech slump. **Commodities: Historic Volatility** Precious metals are experiencing a "flash crash" scenario following heightened margin requirements and shifting Fed expectations. * **Silver:** Witnessed its worst single-day drop since 1980, crashing nearly **30%** before a slight recovery. Current prices hover around **₹2.6 lakh/kg** in India. * **Gold:** Also faced heavy selling, dropping roughly **9%** in international markets to **~$4,781/oz**. Domestic prices in India corrected to **~₹1.49 lakh** per 10 grams. * **Oil:** Crude prices ticked higher, supported by news of the US Navy intercepting an Iranian drone, reigniting supply disruption fears. **Macroeconomic Drivers** * **Fed Leadership:** Volatility spiked after President Trump nominated **Kevin Warsh** to succeed Jerome Powell as Federal Reserve Chair, signaling a potential hawkish pivot. * **Interest Rates:** The Fed held rates steady at **3.50%–3.75%** in late January. * **Data Delays:** The January US jobs report has been delayed due to a partial government shutdown, leaving investors flying blind on labor market health. * **Crypto:** Bitcoin slumped to **~$78,000**, its lowest level since November 2024, caught in the broader risk-off sentiment.