Market Summary - February 5, 2026
The financial markets are currently experiencing a risk-off sentiment, driven by weak macroeconomic data and disappointing earnings reports from major technology companies. This has led to significant declines across various indices and commodities.
Market Performance
US Indices: Wall Street is facing heavy losses, with the Russell 2000 leading the declines at over 1.6%. The Nasdaq 100 futures are also down significantly, while the S&P 500 and Dow are limiting their losses to around 1.2%.
Key Earnings Reports
Alphabet and Amazon are in the spotlight, with Google’s record-high capital expenditures raising concerns among investors. Amazon's stock has tumbled by 10% as investors react to the implications of AI dominance following disappointing results from Microsoft.
Labor Market Data
Recent U.S. labor market data shows a rise in Challenger layoffs from 35,000 to 108,000. Additionally, weekly jobless claims have increased to 231,000, surpassing expectations of 213,000. Job openings reported in the JOLTS survey fell to 6.5 million, significantly below the anticipated 7.2 million.
European Market Trends
European indices closed mostly lower, with Poland’s WIG20 and Spain’s IBEX experiencing the largest declines of around 2%. The main indices in Germany and the UK managed to limit their losses to below 1%, while the CAC 40 index held up relatively well with a minor decline of 0.29%.
Central Bank Decisions
The European Central Bank (ECB) has decided to keep interest rates unchanged, although the accompanying statement indicated a level of uncertainty that is above average.
Precious Metals and Commodities
There has been a sharp sell-off in precious metals, with gold limiting its losses to 2% and silver experiencing a more significant drop of over 13%, returning to around $75 per ounce. Oil prices have also seen a slight decline, with WTI crude falling to $63 per barrel.
Foreign Exchange Market
The British pound has seen notable declines, down approximately 0.8% against major currencies, influenced by a dovish shift in sentiment from the Bank of England's Monetary Policy Committee.
Cryptocurrency Market
The cryptocurrency market is witnessing steep losses, with Bitcoin down as much as 8% to $66,000, and Ethereum dropping over 7% to below $2,000.
Conclusion
The overall market sentiment remains bearish, with various sectors under pressure from disappointing earnings and macroeconomic indicators. Investors are advised to stay cautious as the market navigates through this turbulent phase.