- US MarketsÂ
The SPX index slid 0.5% yesterday amid selling pressure that rattled tech and AI companies. It is trading 0.48% lower at around $6,872 in today’s session.
The software-sector jitters that affected markets yesterday are turning into a broader AI slump. Nasdaq fell 1.7%, marking two consecutive days of decline. Google reported an 18% jump in fourth-quarter revenue and revealed plans to roughly double its spending on data centres and other capital projects. The tech giant’s annual revenue surpassed $400 billion for the first time; however, it traded slightly lower in after-hours trading. But the broadening and participation tracks with a US economy on the rise that ultimately fed through into strong breadth, with 23 advancers in the Dow and more than 360 in the S&P 500. An equal-weight S&P 500 notching a record high close on Wednesday with elevated volumes also reinforces that. Looking at the Bloomberg Factors To Watch function, value beat momentum by a significant margin yesterday. It looks like a painful reset for the tech and AI sector. Amazon is set to announce its earnings today, which will impact the equity indices. On the economic data front, investors would look for a positive reading from the JOLTs Job Openings and Quits report today, after yesterday’s disappointing ADP report that suggested weak private-sector hiring.
Technically, SPX appears to be holding the 50-day SMA at $6,880 as support. The $6,850–$6,880 range is a crucial support zone. The 20-day SMA at $6,932 is likely to act as key resistance, followed by the 9-day SMA at $6,945. Momentum signals are mixed, and SPX lacks a strong, directional trend, with any significant upside mostly facing headwinds from tech-sector nervousness.
- U.S. Dollar IndexÂ
The U.S. Dollar Index is back on the front foot, trading at 97.79 (+0.15%), after recent volatility, as risk sentiment deteriorates across global markets. A pullback in AI-linked equities and broader risk-off rotation, highlighted by sharp losses in the Nasdaq and Asian equities, has lifted demand for the dollar.
From a macro standpoint, recent U.S. data continues to argue against further Fed easing. While ADP payrolls disappointed, services activity remains firmly in expansion, with ISM Services PMI at 53.8. The stabilisation has been helped by official rhetoric reaffirming support for a strong dollar, and by easing fears about policy credibility following Kevin Warsh’s nomination.
The euro is trading at 1.178 ahead of the European Central Bank decision, where it is expected to keep rates on hold. USD/JPY is rising in early trading today, moving above its 50-day simple moving average, as uncertainty around Japan’s elections puts pressure on the yen. With fewer major risks and solid fundamentals, the Dollar Index has a slightly positive outlook for the day, though gains may be limited.
On the daily charts, DXY is trading above 97.50, the previous resistance that is now acting as support. On the upside, DXY may face resistance around the 20-day SMA of 98.01. The EURUSD pair is trading 0.15% down, with possible support at 1.173, and resistance at 1.187.
- Crude OilÂ
Oil prices fell in the Asian session as markets priced in a reduction of geopolitical risk ahead of Friday’s U.S.–Iran nuclear talks, which will be held in Oman. WTI was 0.80% lower at $63.51, and Brent decreased by 1.10% to $67.72/bbl as investor sentiment shifted toward less escalation.
Markets are concerned about U.S. actions targeting Iran and India’s recent reduction in Russian crude imports; these factors could again provide support to the black gold. Also, OPEC+ has paused its planned output hikes for the first quarter, while supply has edged lower, which somewhat offsets soft seasonal demand.
OPEC+’s general agreement on the Q1 pause shows the group’s belief that markets remain well supplied, consistent with EIA predictions of an impending oversupply and inventory builds into 2026, which continues to be a pillar of the underlying bearish structure in crude. However, options markets are still pricing in upside geopolitical spikes in the form of Brent call spread hedging, while downside risk dominates farther out on the curve.
Friday’s oil price action represents a decline in risk premium, but the market remains extremely headline-driven, with developments on the Oman talks, the evolving picture on Venezuelan export policy, and OPEC+ signalling ahead of the March 1 meeting likely to drive the next move.
On the 4-H chart, Brent has been forming higher highs and higher lows since mid-January, and the latest pullback held above the prior swing low around $66.5, keeping the short-term bullish trend structure intact. Recent candles show rejection of the $68.61 resistance level and a push back into $67.50, which remains a pivotal level to hold. Meanwhile, support is seen at $66.55.
WTI has moved into a tight consolidation between $ 62.9 and $64.70 after its late January rally, forming a sideways range that resembles a continuation pattern within the broader uptrend. Buyers continue to defend dips near the low $61.50.
- Gold and SilverÂ
Both Gold and Silver are down today amid a broader market sell off after rising modestly on Wednesday.
The yellow metal is down 1%, after failing to hold the $5,000 level and falling 2.5% intraday in the Asian session. Silver also fell again, with another decline of more than 10% after briefly touching the $90 level. Traders will be watching if silver stays above $71, but arguably more significant is the $70 mark. The precious metal hasn’t been in the $60s range since December and a return to that range will deepen the risk aversion mood across assets.
Volatility in precious metals is expected to remain elevated as investors navigate the current market uncertainties.
From a technical perspective, gold is trying to recapture the 9 SMA on the daily chart and is above the 21 SMA. RSI is around 47, indicating moderate momentum. On the 4-hour chart, immediate resistance is at key level of $5,000 an then at the $5,134 level, which coincides with the 0.618 Fibonacci level. A break above this level can push prices to followed by $5,250, which is the 28th January 2026 breakout level. Immediate support is today’s low of $4,788, followed by $4,668.
Silver is still trading below the 9 and 21 SMA on the daily chart and has an RSI of 31, indicating that buying momentum has slowed down and investors are still cautious. On the 4-hour chart, resistance is at $93 (100 SMA) followed by the key $100 level. A break above this level can solidify bullish momentum on silver. Immediate support is at 2nd Feb 2026 low of $71.2, followed by $64 and then $57.
