Global Markets Weekly Update
Date: February 06, 2026
U.S. Market Overview
Major U.S. equity indexes experienced a volatile week, with large-cap technology stocks facing their worst performance since November. Concerns over artificial intelligence (AI) and potential overinvestment in technology weighed heavily on high-growth stocks. Conversely, small-cap and value-oriented stocks saw gains, indicating a rotation in investor sentiment.
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 all 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, reaching their lowest level since September 2020, while layoffs surged to the highest January total since 2009.
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 19 consecutive months 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 reached a new intraday high, gaining 1.00%. The European Central Bank maintained its key deposit rate at 2.0%, citing a resilient economy and slowing inflation.
Japan Market Overview
Japan's stock markets rose, with the Nikkei 225 gaining 1.75%. However, household spending fell sharply, raising concerns ahead of the upcoming elections.
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 modest growth while official data suggested a slowdown.
Other Key Markets
The Czech National Bank and the Polish central bank both kept their rates unchanged, with policymakers expressing cautious optimism about their respective economies.
This material is provided for informational purposes only and is not intended to be investment advice.