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Global Market Snapshot – February 3, 2026
Equities: West Rallies, East Stumbles
US markets kicked off February on positive footing, with the **Dow Jones** adding **+1.05%** to close at **49,407**, while the **S&P 500** and **Nasdaq** gained **+0.54%** and **+0.56%** respectively. European indices mirrored this optimism; the **DAX** and **FTSE 100** both climbed over **1%**.
In contrast, Asian markets faced heavy selling pressure. Japan's **Nikkei 225** shed **-1.25%**, and Hong Kong's **Hang Seng** dropped **-2.23%**, weighed down by regional economic concerns and a rotation of capital back to Western equities.
Commodities: Oil Crashes, Gold Whipsaws
**Crude Oil** suffered its steepest single-day decline in six months. **WTI** futures plummeted over **4.5%** to break below **$62** per barrel, while **Brent** dipped to **$65.89**. Prices collapsed as geopolitical risk premiums evaporated following news of renewed diplomatic talks between the US and Iran, alongside OPEC+ maintaining steady output levels.
**Gold** experienced extreme volatility, rebounding **+2%** to trade near **$4,770** per ounce after an earlier selloff drove it to 4-week lows around **$4,400**. Bargain hunters stepped in following the initial shock of President Trump’s nomination of Kevin Warsh as Federal Reserve Chair, whose hawkish reputation initially spiked yields and the dollar.
Crypto & Currency: Bitcoin Under Pressure
The crypto market remains in a correction phase. **Bitcoin** slipped **2.3%** to trade around **$77,100**, hovering near 10-month lows. Approximately **$1.6 billion** in leveraged positions were liquidated as risk appetite for digital assets waned in the face of potential monetary tightening.
In currencies, the **US Dollar Index (DXY)** strengthened **0.42%** to **97.60**, supported by the hawkish Fed outlook. The **USD/JPY** pair held steady at **155.50**, reflecting the greenback's renewed dominance against major peers.
Key Market Drivers
* **Fed Leadership:** The nomination of Kevin Warsh as Fed Chair has recalibrated interest rate expectations, signaling a potential shift toward tighter monetary policy.
* **Geopolitics:** De-escalation signals from US-Iran negotiations have removed immediate supply fears from the energy sector, triggering the selloff in oil.