MPC Morning Call 3rd February 2026 – US investors shake off global nerves and buy the dip
Stock bounced back well from Asian session lows, helped by gains in defensive consumer staple stocks. Market participants shook off a continued selloff in gold and silver and shifted their focus to trade developments after President Donald Trump said he had reached a deal with…
WATCH ON YOUTUBE MPC Morning Call 3rd February 2026 – US investors shake off global nerves and buy the dip Stock bounced back well from Asian session lows, helped by gains in defensive consumer staple stocks. Market participants shook off a continued selloff in gold and silver and shifted their focus to trade developments after President Donald Trump said he had reached a deal with India. Markets showed a shift in sentiment as investors moved away from high-growth AI-related stocks and into more defensive consumer staples. Nvidia shares weakened amid concerns about stalled investment plans, while Apple gained due to its limited exposure to the AI sector. Traditional consumer names such as Pepsi, Coca-Cola, and Walmart led the market with strong performance. At the same time, Walt Disney reported better-than-expected earnings but warned of lower international park attendance, sending its shares lower despite strong overall market momentum. Geopolitically, former U.S. President Donald Trump announced that India would halt purchases of Russian oil following talks with Prime Minister Narendra Modi, pledging instead to buy more from the U.S. and possibly Venezuela. The two leaders reportedly agreed on a new trade deal that would reduce U.S. tariffs on Indian goods and boost Indian purchases of American products. Despite this potentially significant shift, oil prices continued to fall, weighed down by easing tensions between Washington and Tehran and unchanged production targets from OPEC+. Brent crude fell more than 4%, extending a slide that began with de-escalation in the Middle East. In the broader economic backdrop, a brief U.S. government shutdown delayed the January jobs report, though lawmakers are expected to pass temporary funding shortly. Market sentiment improved as February began following sharp sell-offs in gold and silver, sparked by a stronger dollar and uncertainty over the nomination of Kevin Warsh as the next Federal Reserve chair. Despite volatility from geopolitical and policy developments, Wall Street closed the month of January with gains: the S&P 500 rose 0.54% to 6,976, led by small-cap outperformance in the Russell 2000. Analysts expect strong corporate earnings growth—driven largely by technology companies—to continue supporting markets, even as investors turn cautious amid lofty valuations and shifting global trade dynamics. Government Bond Yields Commodities, Energy & FX ASX Overnight: SPI 8818 (+98%) The Day Ahead: The ASX will be all about RBA today, but should see a good recovery after falling into the “panic trap” yesterday The day ahead RBA 230pm
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