GoAI Market Wrap - 5th Feb

Stock Market  

Last night and this morning, the U.S. stock market continued its style rotation, with the Nasdaq falling more than 1% for the second straight day under pressure from ongoing pullbacks in several tech heavyweights. The S&P 500 also closed lower, but over 70% of its components finished in the green.

 

At close: S&P 500 -0.51% to 6,882.72, Nasdaq Composite -1.51% to 22,904.58, Dow Jones Industrial Average +0.53% to 49,501.3.  

 

After two consecutive days of declines, the Nasdaq also broke below its 100-day moving average.

 

At today's close, 363 S&P 500 components finished higher, so the equal-weighted S&P 500 rose 0.9% on Wednesday. The top three gainers were all recent earnings beaters: Super Micro Computer +13.78%, Fortive +10.63%, Eli Lilly +10.33%.

 

Excluding one flat stock, among the 139 decliners were many former high-flyers. AI compute chip leader AMD plunged 17.31% after earnings; AI application names AppLovin and Palantir both fell more than 10%. The “big four” storage stocks also dropped collectively: SanDisk -15.95%, Micron -9.55%.

 

On this wave of tech selling — especially the sharp software sector plunge — Nvidia CEO Jensen Huang publicly expressed bafflement. At an event this week, he said software products are tools, and AI will use them rather than reinvent them.

 

He gave an analogy: “Some think these tools are declining and being replaced by AI. Would you use a screwdriver, or go invent a new screwdriver?”

 

Wednesday’s key market move was the broad rally in solar stocks after news that the “SpaceX team is inspecting China’s photovoltaic supply chain.” Enphase Energy (microinverter maker) surged 38.60%, SolarEdge +13.14%, JinkoSolar (solar module leader) +8.66%.

Global Markets  

US-Iran Talks Briefly on Brink of Collapse, Then Back on Track  

 

The US-Iran talks scheduled for this Friday briefly teetered on the edge of collapse but have temporarily returned to normal. After multiple rounds of back-and-forth, Iran’s Foreign Minister Araghchi posted on social media that nuclear talks with the US are now set for around 10 a.m. Friday in Muscat (capital of Oman).

 

U.S. Bureau of Labor Statistics Delays January Jobs Report to February 11  

 

The U.S. Bureau of Labor Statistics (BLS) announced Wednesday that the January employment report, originally due this Friday, will be delayed to February 11. The January CPI report is postponed to February 13, and the December JOLTS job openings report is shifted to February 5.

 

Musk’s Net Worth Breaks $800 Billion  

 

After SpaceX and xAI completed their merger, the world’s richest man Elon Musk’s wealth increased further, making him the first person to surpass $800 billion. According to Forbes, the merged company’s valuation reached $1.25 trillion, adding $84 billion to Musk’s fortune. As of Wednesday’s close, his latest net worth stood at $841.1 billion.

 

European Chemicals Post Largest Single-Day Gain in 4 Years  

 

The European chemicals sector posted its biggest single-day gain in nearly four years on Wednesday. The “sector rotation” wave affecting global markets, combined with rumors of the EU easing carbon emission policies, fueled the rally. The STOXX Europe 600 Chemicals index jumped 4.79%. Individual stocks: BASF +4.98%, Air Liquide +5.71%, IMCD +9.92%, Azelis +9.53%.

 

Nasdaq Proposes Faster Inclusion Rule  

 

Nasdaq proposed Wednesday a “fast entry” rule change that would allow newly listed large companies to join the Nasdaq-100 index after just 15 trading days — far shorter than the current minimum three-month wait.

Company News  

Eli Lilly’s Full-Year Guidance Solidifies Obesity Drug Leadership  

 

U.S. pharma giant Eli Lilly rose 10.33% Wednesday after releasing strong earnings and upbeat full-year sales guidance. Fueled by robust demand for obesity drugs, the company further consolidated its leading position in obesity treatment — in stark contrast to rival Novo Nordisk. Novo warned investors Tuesday that intensified price competition in the obesity market could cause sales to fall as much as 13% this year. In comparison, Lilly guided for sales growth up to 27%.

 

AMD Posts Largest Single-Day Drop Since 2017  

 

AMD fell 17.31% Wednesday — its biggest single-day drop since May 2017 — after its guidance lacked highlights. Some analysts called the outlook weak. Amid the plunge, AMD CEO Lisa Su publicly stated: “I’m telling you from an insider’s perspective: AI is accelerating at a speed I can’t even imagine.”  

 

She added that AMD’s data center business clearly accelerated from Q4 to Q1, with CPU demand “exploding” as enterprises rapidly ramp up compute for enterprise-grade AI applications.

Forex & Commodities  

International oil prices rose on February 4.

 

At close, NYMEX WTI March crude futures +1.26 to $64.47/bbl (+1.99%).

 

COMEX gold March futures +51.40 to $4,986.4/oz (+1.04%). COMEX silver March futures +4.46 to $87.765/oz (+5.36%).

 

Spot gold +17.27 to $4,964.31/oz (+0.35%). Spot silver +3.12 to $88.2/oz (+3.67%).

Key Events  

Dalio: Gold Remains the Safest Investment Choice  

 

Bridgewater founder Ray Dalio said Wednesday at the World Governments Summit in Dubai that he is not unsettled by recent sharp gold declines and still views gold as the safest place to park money.

 

Dalio noted that central banks worldwide still hold large gold reserves. Last year, gold overtook the euro to become the second-largest reserve asset.

 

Dalio said: “I think if those responsible for policy could speak clearly, they would say that in this environment, gold is the safest investment choice.”

 

He added that gold’s safety “doesn’t change day to day.” He referred to gold’s long-standing role as an inflation hedge and alternative to fiat currency.

Cryptocurrency  

Bitcoin (BTC) 24h -2.28% to $76,250.40.  

 

Ethereum (ETH) 24h -0.89% to $2,259.38. 

 

BNB (BNB) 24h -1.45% to $756.31.  

 

XRP (XRP) 24h -0.21% to $1.59.  

 

Solana (SOL) 24h -5.64% to $96.96.

Key Events  

Bitcoin Drops Below $72K — How Much Faith Left in Crypto?  

 

Bitcoin fell below $72,000, bringing the crypto market’s “faith” question to the forefront. Amid a sharp global risk-off mood, investors are reassessing Bitcoin’s role in market turmoil, putting its safe-haven narrative under scrutiny.

 

Per Bloomberg, Bitcoin briefly hit $71,739 in late New York trading Wednesday — the first time below $72,000 in about 15 months. Compared to last October’s peak, Bitcoin has retraced over 42%, with a year-to-date drop of ~17%, now at its lowest since November 6, 2024.

 

This leg lower is no longer just internal crypto deleveraging — it’s part of broader cross-asset pressure. Global markets saw synchronized selling Wednesday, with the Nasdaq 100 down over 2%, and rate-sensitive sectors like software and chips under heavy pressure — dragging Bitcoin lower.

 

On the sentiment side, a “crisis of faith” is forming. Monarq Asset Management managing partner Shiliang Tang said the market is experiencing a “crisis of faith.”

 

Efficient Frontier business development head Andrew Tu said crypto sentiment is in “extreme fear.” If $72,000 breaks, Bitcoin could test $68,000 or even retreat to pre-2024 rebound lows.