Global Markets Weekly Update
Date: February 06, 2026
U.S. Market Overview
Major U.S. equity indexes finished a volatile week mixed. Large-cap technology stocks faced their worst week since November, while small-cap and value-oriented stocks continued to gain. Concerns about the disruptive potential of artificial intelligence (AI) and overinvestment in technology weighed on high-growth stocks. The Nasdaq Composite fell by 1.84%, while the S&P 500 remained relatively unchanged. In contrast, the S&P MidCap 400, Russell 2000, and Dow Jones Industrial Average posted solid gains.
Labor Market Insights
ADP reported a disappointing increase of only 22,000 jobs in January, significantly below expectations. Job openings also declined to 6.542 million, the lowest since September 2020, while layoffs surged to over 108,000, marking a 118% year-over-year increase.
Manufacturing and Services Activity
Manufacturing activity rebounded in January, with the ISM manufacturing PMI rising to 52.6, indicating expansion. However, the services PMI remained unchanged at 53.8, marking its 19th consecutive month of expansion.
Market Performance Summary
| Index | Friday's Close | Week's Change | % Change YTD |
|---|---|---|---|
| DJIA | 50,115.67 | 1,223.20 | 4.27% |
| S&P 500 | 6,932.30 | -6.73 | 1.27% |
| Nasdaq Composite | 23,031.21 | -430.60 | -0.91% |
| S&P MidCap 400 | 3,587.00 | 149.90 | 8.53% |
| Russell 2000 | 2,670.34 | 56.60 | 7.59% |
European Market Overview
The pan-European STOXX Europe 600 Index gained 1.00%, supported by optimism about the eurozone economy. The ECB kept rates unchanged at 2.0%, while inflation slowed to 1.7% in January.
Japan Market Overview
Japan's stock markets rose, with the Nikkei 225 gaining 1.75%. However, household spending fell 2.6% year-over-year in December, raising concerns ahead of the upcoming election.
China Market Overview
Mainland Chinese stock markets ended lower, with the CSI 300 Index down 1.33%. Economic activity showed mixed signals, with private surveys indicating growth while official data suggested a slowdown.
Other Key Markets
The Czech National Bank kept rates steady, citing the need for tight monetary policy, while Poland's central bank also maintained rates, expecting inflation to align with targets.