**Global Market Snapshot: February 4, 2026** **US Markets Stumble on Tech Weakness** Wall Street faced a sharp pullback yesterday, driven by a sell-off in major technology stocks and renewed concerns over AI capital expenditures. The **Nasdaq Composite** led the decline, dropping **1.4%** to close at **23,255**, while the **S&P 500** fell **0.8%** to **6,918**. The **Dow Jones Industrial Average** showed more resilience but still slipped **0.3%**, settling at **49,241**. **Sector Watch & Earnings Volatility** investors are rotating out of high-growth tech names amid mixed earnings reports. **Microsoft** shares faced pressure despite beating revenue estimates, as tempered guidance for its Azure cloud unit and massive AI spending spooked traders. Conversely, **Palantir** surged on robust AI-driven revenue growth, highlighting the market's selective appetite for clear AI monetization. Disappointments weighed heavily elsewhere: **PayPal** plummeted nearly **20%** following weak guidance, and **Gartner** slid on earnings misses. **Apple** remains a bright spot, having recently reported record Q1 revenue of **$143.8 billion**, driven by unprecedented iPhone demand. **Geopolitics & Commodities** Oil prices spiked sharply, with **Brent Crude** rising **2.6%** to approximately **$68 per barrel**. Tensions in the Middle East escalated after reports that the US Navy intercepted an Iranian drone, renewing fears of supply disruptions. In bond markets, the **10-year Treasury yield** climbed to **4.28%**, adding further pressure to equity valuations as borrowing costs tick upward. **Global Sentiment: The India Rally** While US markets cooled, Indian equities are digesting a historic surge. The **Sensex** rallied over **2,000 points** yesterday, driven by optimism surrounding a new **India-US trade agreement**. Traders are now bracing for potential volatility and profit-taking in today's session following the massive run-up. **What to Watch Today** * **Alphabet (Google)** is set to report earnings today, a critical test for the digital ad market and AI search competition. * **Amazon** earnings are scheduled for tomorrow, February 5. * **Geopolitical updates** regarding the Middle East and US-Iran relations remain a key risk factor for energy markets.