GoAI Market Wrap - 6th Feb

Stock Market

 

Overnight and into this morning, the software and cryptocurrency sectors—which have faced significant turbulence in recent days—experienced another round of declines. Weak U.S. employment data abruptly halted the "sector rotation" seen over the past few days, as the sell-off expanded across the broader market.

 

The S&P 500 closed down 1.23% at 6,798.4 points; the Nasdaq Composite fell 1.59% to 22,540.59 points, marking its worst three-day sell-off since last April; and the Dow Jones Industrial Average dropped 1.2% to 48,908.72 points. Bitcoin dipped below $64,000 during the session, having shed nearly half its value over the past six months, while spot silver plummeted nearly 20% in a single day.

 

While losses in previous sessions were largely confined to AI and software-related sectors, Thursday saw the rout spread. In the S&P 500, 318 components declined, fueled in part by softening labor market data. U.S. job openings for December unexpectedly dropped to their lowest level since 2020, and Challenger layoffs hit their highest January total since the 2009 recession.

 

Mohamed El-Erian, Chief Economic Advisor at Allianz, noted: "Remarkably, these layoffs are occurring while GDP is still growing at around 4%, accelerating the decoupling of employment from economic growth. If this trend persists, it will have profound economic, political, and social implications."

 

By Thursday's close, the S&P 500 was once again testing its 100-day moving average. Adding to market anxiety, cloud giant Amazon plunged over 10% in after-hours trading after announcing a staggering $200 billion capital expenditure plan for the year. This aggressive spending led to an operating profit guidance that fell short of analyst expectations, which had previously pegged capex at just $150 billion.

Global Markets

CME Raises Margins for Gold and Silver Futures Again

 

The CME Group issued a new margin notice, raising the initial margin for COMEX 100 Gold futures from 8% to 9% and for COMEX 5000 Silver futures from 15% to 18%. The changes take effect after the close of business on February 6.

 

Volkswagen Overtakes Tesla as Europe's EV Sales Leader

 

Data from JATO Dynamics released Thursday shows Volkswagen surpassed Tesla in European battery electric vehicle (BEV) sales in 2025. VW's BEV sales surged 56% year-over-year, driven by strong demand for the new ID.7. Conversely, Tesla’s European registrations fell 27% during the same period.

Corporate News

World's Largest Jeweler Pivots to Platinum

 

Pandora shares soared 16.83% on Thursday after addressing concerns over silver price volatility. The company announced it will launch platinum-plated jewelry to reduce its reliance on sterling silver, which has seen prices double over the past year.

 

Pandora plans to transition at least half of its silver products to platinum-plated alloys within the next year to mitigate rising raw material costs.

 

Mega Mining Merger Collapses

 

The proposed merger between Rio Tinto and Glencore to create the world's largest mining group officially fell through on Thursday. Glencore stated that Rio Tinto insisted on retaining the Chairman and CEO roles for its own leadership while offering an ownership split that undervalued Glencore’s contribution and lacked a control premium.

 

Memory Shortage Delays NVIDIA Gaming GPUs

 

Reports on Thursday indicate that NVIDIA has postponed the launch of its RTX 50-series "Super" cards, originally slated for a CES debut, to prioritize AI chip production amid limited memory supply. The refresh may not appear at all in 2026, and the next-generation RTX 60-series, originally planned for late 2027, could be pushed to 2028 or later.

Forex & Commodities

Gold and silver saw sharp declines. COMEX Gold futures fell $152.70 (3.08%) to $4,798.1/oz, while COMEX Silver futures tumbled $14.05 (16.64%) to $70.35/oz.

 

Spot Gold dropped $183.75 (3.70%) to $4,780.56/oz, and Spot Silver fell $17.22 (19.52%) to $70.98/oz.

 

International oil prices also declined on February 5. WTI Crude futures fell $2.02 (3.10%) to close at $63.12 per barrel.

Key Events

CME Group raised initial margins for COMEX 100 Gold (8% to 9%) and COMEX 5000 Silver (15% to 18%).

Cryptocurrency

Bitcoin (BTC): $64,113.36 (-12.23%).

Ethereum (ETH): $1,889.21 (-12.61%).

BNB (BNB): $620.41 (-11.30%).

XRP (XRP): $1.23 (-17.28%).

Solana (SOL): $76.63 (-16.80%).

Key Events: Bitcoin Hits 16-Month Low; Over 400,000 Liquidated

Bitcoin's 12% plunge to near $63,000 marks a 16-month low. According to Coinglass, more than 400,000 traders were liquidated in the past 24 hours, with total long liquidations reaching $1.703 billion.

 

The market is facing a "crisis of confidence." The breach of the $70,000 psychological level has triggered broader selling. Bitcoin has now retraced over 48% from its peak last October, with its total market cap shrinking from $2.48 trillion to $1.27 trillion. Sentiment has shifted decisively toward risk-off, with price action currently driven more by deleveraging than by fundamental narratives.