Macro View - February 05, 2026 (EOD)

 ## Macro Summary Today's trading session was heavily influenced by macroeconomic concerns, particularly surrounding the U.S. job market and ongoing volatility in the tech sector. The S&P 500 and Nasdaq Composite witnessed significant declines as investors reacted to disappointing job numbers and increasing layoffs, which have raised fears of a slowdown. Job openings fell to their lowest levels since 2020, contributing to a risk-off sentiment among market participants. The tech sector, in particular, faced a rout as concerns regarding elevated AI spending plans from major companies like **$GOOGL** and **$AMZN** added to the uncertainty. The fallout from these developments has led to a cautious environment, with investors reevaluating growth expectations amid rising interest rates. Internationally, markets in Asia-Pacific are set for another weak session as the tech sell-off deepens. Investors are bracing for more volatility as they digest the implications of the U.S. job market data and its potential impact on Federal Reserve policy. Concerns over ongoing geopolitical tensions, particularly U.S.-Iran relations, also weighed on sentiment, causing oil prices to fluctuate and contributing to the broader market uncertainty. ## Economic Data Reaction - **U.S. Job Openings:** 5.7 million vs. 6.0 million expected - The market reacted negatively, leading to increased selling pressure in equities. ## Fed & Central Banks The Federal Reserve's stance remains a focal point as market participants await further guidance on interest rates. Fed officials have indicated a commitment to controlling inflation, which has led to speculation about potential rate cuts later in the year. The mixed economic signals, particularly from the labor market, will likely complicate the Fed's decision-making process. Market analysts are closely monitoring upcoming comments from Fed officials to gauge the central bank's next moves. ## Rates & Bonds - 10-Year yield: 3.67% (+0.10%) - 2-Year yield: 4.23% (+0.05%) - The yield curve remains inverted, indicating ongoing concerns about economic growth and potential recession risks. ## Currency & Dollar The U.S. dollar exhibited strength today, gaining against major currencies as uncertainty in the equity markets drove investors towards safe-haven assets. The euro and sterling both slipped as the market digested the implications of the ECB's recent rate decisions and ongoing geopolitical tensions. This shift in currency dynamics has affected international equity markets, with many investors seeking refuge in dollar-denominated assets. ## Commodities Wrap - Oil: $76.50, down 2.3% - Gold: $5,025, up 1.0% - Silver: Prices dropped sharply, falling 12% during trading. - Market focus remains on supply concerns amid U.S.-Iran negotiations which have contributed to oil price fluctuations. The silver sell-off is notable as it reflects broader market fears and volatility across commodities. ## Global Markets Close - Europe: Major indices closed lower, with DAX down 0.63% and FTSE down 0.29% as investor sentiment shifted towards risk aversion. - Asia setup for tonight: Anticipated further declines as tech stocks are under pressure and geopolitical tensions persist. ## Tomorrow's Macro Focus Investors will be looking ahead to key economic indicators, including manufacturing data and any comments from Fed officials that could provide more clarity on interest rate policy. Additionally, developments in U.S.-Iran talks may influence commodity prices and overall market sentiment.