**Global Market Brief: February 4, 2026** **Market Pulse: Tech Retreats, India Rallies** Global markets displayed sharp divergence today. US equities stumbled as investors rotated out of the technology sector, dragging the **Nasdaq Composite** down **1.43%** to 23,255 and the **S&P 500** lower by **0.84%** to 6,917. The **Dow Jones** managed to limit losses to **0.34%**, aided by defensive rotations. In contrast, Asian markets saw a significant boost, led by India. The **Sensex** and **Nifty 50** surged over **2.5%**, reacting positively to the newly announced US-India trade agreement which slashes tariffs on Indian goods to **18%**. **Sector Spotlight: AI Jitters Hit Software** The "AI trade" is facing a reality check. Major tech names faced heavy selling pressure, with **NVIDIA** dropping **2.84%** and **PayPal** plummeting over **20%**. Investors are increasingly concerned that rapid advancements in artificial intelligence models are eroding market share for traditional software service companies. This sentiment triggered a broad sell-off in the software vertical, despite strong earnings reports from other segments of the market. **Policy & Geopolitics: Trade Deals & Fed Shifts** Key political developments are driving asset allocation: * **US-India Pact:** President Trump announced a reciprocal trade deal with India, cutting tariffs and boosting risk appetite in emerging markets. * **Fed Leadership:** The White House has nominated **Kevin Warsh** as the next Federal Reserve Chair, signaling a potential shift in monetary policy management. * **Geopolitical Tension:** Escalating friction between the US and Iran is keeping volatility elevated, with the **VIX** jumping **10%** to 18.00. * **Government Shutdown:** A partial US government shutdown remains in effect, adding a layer of uncertainty to domestic economic forecasts. **Commodities: Gold’s Historic Run** Safe-haven demand is dominating the commodities space. Gold prices have staged a massive rally, with some contracts breaking past the psychological **$5,000 per ounce** barrier following the renewed geopolitical risks. Crude oil remains volatile but elevated, with **Brent Crude** trading near **$66.50** and **WTI** holding around **$61.80** per barrel. Markets are weighing supply fears from the Middle East against demand concerns from the tech-led equity slowdown. **Crypto: Digital Assets Cool Down** The cryptocurrency market is in a consolidation phase. **Bitcoin (BTC)** has slipped roughly **2.3%**, trading near **$76,600**, struggling to reclaim the $80,000 level. **Ethereum (ETH)** followed suit, dipping **2.2%** to trade around **$2,280**. The total crypto market cap has seen a contraction of approximately **14%** week-over-week as capital rotates back into traditional safe havens like gold and bonds. The searched domain is not from YouTube, so no video URL is included.