Market Update [Feb 2nd]: Dow Leads Gains

U.S. Markets: What happened

  • U.S. markets ended the day higher across the board.
  • The Dow did better than tech, but the S&P 500 and Nasdaq also moved up and stayed close to record levels.
  • Overall mood was calm and steady. Not a big risk-on day, but clearly not risk-off either.

What supported the markets

  • U.S. manufacturing data came in strong. This reassured markets that the economy is still holding up, even with high interest rates.

  • Cyclical and industrial stocks led the move. That usually happens when investors are comfortable with growth and are not worried about an immediate slowdown.

  • Rising bond yields did not hurt equities much. This suggests markets are currently okay with the idea that rates stay higher for longer.

What did not matter as much

  • Commodities were volatile, especially gold, silver, and oil. These moves looked more like position unwinding and dollar strength than a signal of economic stress.

  • Policy and Fed-related noise stayed in the background. Investors focused more on actual data than on speculation.

How to read this session

  • Markets seem to be absorbing volatility and not panicking
  • Growth data still matters more than narratives
  • Risk appetite is selective but intact