Market Wrap Summary - February 5, 2026

Market Overview

Today marked a significant downturn in global markets, characterized by a widespread selloff across various asset classes. Bitcoin led the charge, plummeting 10% to $63,000, while altcoins experienced even steeper declines, some dropping over 20%.

The technology sector is showing signs of fragility, reminiscent of the 2021 decline that left the Nasdaq stagnant for nearly 18 months. This downturn overshadowed what should have been a celebratory moment for Alphabet, which reported record profits but saw its stock hammered by investor reactions.

Commodity and Currency Performance

Metals also faced significant losses, with silver dropping 10% to $73, raising concerns about their reliability as risk assets following recent parabolic price movements. In contrast, US Treasuries and the US Dollar emerged as safe havens, gaining traction amidst the chaos.

The narrative surrounding the market is shifting towards a more pessimistic outlook, fueled by unexpectedly soft US labor data and advancements in AI technology, which are raising fears of workforce displacement. This has particularly impacted the tech and software sectors, with some leveraged ETFs experiencing declines of up to 30% in a single session.

Market Sentiment and Future Outlook

The rapid pace of the selloff suggests that volatility is likely to persist in the coming days. Investors are advised to manage risk aggressively as the market adjusts to these new realities.

Looking ahead, attention will be focused on upcoming economic data releases, including the Canadian jobs report and US consumer sentiment indicators. The market is bracing for a potentially tumultuous session tomorrow, with traders advised to keep a close watch on developments, particularly in the Middle East.

Conclusion

Today's market performance indicates a significant shift in sentiment, with traditional safe havens gaining favor as risk assets falter. The ongoing volatility and uncertainty surrounding economic indicators and technological advancements will likely keep traders on high alert in the days to come.