Market Analysis Summary - February 2026

Overview

The opening week of February 2026 has been marked by significant volatility across various markets. Key events include a sharp sell-off in bullion, a capitulation in Bitcoin, a retreat in US technology stocks, and a resurgence of the US dollar as investors seek liquidity. With most blue-chip corporations having reported their quarterly results, attention is now shifting towards critical macroeconomic data from the US, including non-farm payrolls (NFP) and inflation readings.

Key Markets to Watch

1. EUR/USD

The US dollar has regained strength as capital flows into cash. Upcoming macroeconomic releases will be crucial in determining the dollar's trajectory. Key reports include December retail sales data, the January employment report (NFP), and the January CPI inflation print. Strong labor data combined with persistent inflation could reinforce the "higher-for-longer" interest rate narrative.

2. Silver

Silver has experienced a dramatic decline, losing nearly 50% of its value from its all-time highs to recent lows. Concerns over a physical supply crunch have eased, particularly in China, where price premiums have narrowed. Despite a slight rebound, silver remains vulnerable, especially if there are further liquidations in Bitcoin or Wall Street.

3. US500 (S&P 500)

US equities have faced significant selling pressure, exacerbated by the collapse in cryptocurrency and precious metals markets. Investors are increasingly wary of the capital expenditures of technology firms, which have not yet translated into substantial growth. However, the broader economy shows resilience, and upcoming retail sales and employment data will be critical in shaping market sentiment. Corporate earnings reports from major companies like Coca-Cola, Ford, McDonald's, and Cisco are also anticipated.

Conclusion

As the market navigates through this period of heightened volatility, the focus will remain on key economic indicators and corporate earnings that could influence investor sentiment and market direction in the coming weeks.