February 5, 2026 — U.S. political uncertainty eased meaningfully after the President reached a funding agreement with Senate Democrats, officially ending the risk of a prolonged partial government shutdown. The resolution restored market confidence in U.S. Treasuries and the dollar, pushing the U.S. Dollar Index to a one-week high and weighing broadly on non-USD assets.
After a strong rally to record levels, spot gold saw notable profit-taking. Prices reversed from intraday highs on Wednesday, briefly breaking below key technical support and pulling back toward the USD 5,004/oz area. The move signals a short-term cooling in safe-haven demand, as markets reassess geopolitical risk premiums amid improving political clarity. Energy markets, however, remained relatively resilient. WTI crude oil advanced against the broader risk-off tone, holding near USD 64 as supply expectations and negotiation uncertainty continued to support prices.
Asset Market Performance and Market Analysis
1. U.S. Equity Markets
Index Performance
- Dow Jones Industrial Average (DJI): 49,501.30 (+0.53%). Defensive and value-oriented blue-chip stocks attracted inflows as investors sought relative stability.
- S&P 500 Index (SPX): 6,902.99 (−0.10%). The index continued to consolidate below the psychologically important 7,000 level.
- Nasdaq 100 Index (NDX): 25,060.75 (+0.25%). Tech shares showed mild resilience despite ongoing valuation sensitivity.
Stock Highlight
- Tesla (TSLA): USD 406.01 (−3.78%). Shares slid to a near two-month low amid concerns over moderating EV demand and post-earnings profit-taking pressure.
2. Foreign Exchange Markets
- U.S. Dollar Index (DXY): 97.642 (+0.27%). The dollar strengthened as markets recalibrated expectations for Federal Reserve rate cuts in 2026 and safe-haven flows returned.
- EUR/USD: 1.18006 (−0.05%). The euro remained capped below the 1.20 handle, pressured by yield-spread dynamics and lingering geopolitical headwinds to European growth.
- USD/JPY: 156.928 (+0.07%). Yen weakness persisted, with markets increasingly alert to potential intervention signals from the Bank of Japan as the pair approaches the 160 level.
3. Precious Metals and Commodities
Precious Metals
- Spot Gold (XAU/USD): USD 5,012.95/oz (+0.98%). Despite intraday volatility, gold successfully held above the historic USD 5,000 threshold.
- Spot Silver (XAG/USD): USD 89.48/oz (+1.46%). Silver extended gains after clearing USD 85 resistance, supported by a combination of safe-haven flows and strong industrial demand.
Commodities
- WTI Crude Oil (XTI/USD): USD 64.58/barrel (+0.02%). Oil prices found solid near-term support around USD 65, underpinned by Middle East tensions and uncertainty surrounding U.S.–Iran nuclear negotiations.
4. Digital Assets and Macro Dynamics
- Bitcoin (BTC/USD): USD 72,685 (−0.43%) Bitcoin entered a phase of technical consolidation after failing to sustain upside momentum, as rising U.S. Treasury yields weighed on risk appetite.
- Ethereum (ETH/USD): USD 2,136.6 (−0.34%) Ethereum continued to underperform Bitcoin and traditional safe-haven assets.
5. Today’s Focus
- Bank of England (BOE) Monetary Policy Report
- BOE Monetary Policy Statement
- BOE Interest Rate Decision and Vote Breakdown
- European Central Bank (ECB) Main Refinancing Rate Decision
- ECB Monetary Policy Statement
- ECB President’s Press Conference
- U.S. Initial Jobless Claims (week ending Jan 31)
- U.S. JOLTS Job Openings Report
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