**GLOBAL MARKET BRIEF: Wednesday, February 4, 2026** **Equities: Volatility Follows Historic Rallies** Global markets are trading with heightened volatility today as investors digest a mix of geopolitical shifts and sector rotations. Following a massive Monday rally where the Dow Jones surged **515 points**, US indices pulled back in the latest session. The tech-heavy Nasdaq dropped **1.43%** and the S&P 500 lost **0.84%** overnight, driven by a sharp rotation out of technology stocks and concerns over stalled AI investments. In Asia, markets are mixed. India’s Sensex and Nifty are pausing for breath after yesterday’s historic **2.5%** surge, triggered by the newly finalized India-US trade deal. This agreement, which slashes US tariffs on Indian goods to **18%**, remains a key sentiment driver, though profit-booking is capping immediate gains. Meanwhile, broader Asian indices are flat to negative, with Japan’s Nikkei losing **0.61%** amid a lack of fresh regional catalysts. **Commodities: Gold Breaks Records** Precious metals are the standout performers. Gold prices have surged past the psychological **$5,000 per ounce** mark, gaining over **1%** intraday and **6%** earlier in the week. Safe-haven demand is spiking due to renewed geopolitical tensions in the Middle East and uncertainty surrounding the partial US government shutdown. Silver is tracking gold’s ascent, trading firmly above **$85 per ounce**, while oil prices remain steady. Brent Crude is hovering near **$67 per barrel**, supported by supply concerns but capped by doubts over global demand growth. **Crypto: Bearish Momentum Persists** The cryptocurrency sector is under significant pressure. Bitcoin has slipped **2.4%** to trade around **$76,600**, struggling to find support as momentum shifts downward. Ethereum has seen steeper declines, dropping **4%** to approximately **$2,258**. Market sentiment is being weighed down by a lack of new liquidity inflows and broader risk-aversion in speculative assets. **Key Economic Drivers** * **US Fed Chair Nomination:** President Trump’s nomination of Kevin Warsh as the next Federal Reserve Chair has introduced uncertainty. Markets view Warsh as potentially more hawkish, tempering expectations for aggressive rate cuts later this year. * **Data Delays:** Investors are flying partially blind as the release of the crucial US January jobs report has been delayed due to the ongoing government shutdown. * **Trade Relations:** The India-US trade pact is providing a structural floor for emerging market sentiment, counteracting some of the gloom from the US tech sell-off. **Market Outlook** Traders should expect choppy conditions to persist throughout the midweek session. The focus remains on whether the "real economy" sectors can sustain the rallies seen earlier this week or if the tech weakness will drag broader indices lower. Watch for support levels in the S&P 500 and continued volatility in gold as geopolitical headlines evolve.