MPC Morning Call 4th February 2026 – Stocks retreat as investors rotate out of tech
Stocks ended deep in the red overnight, weighed by tech as investors rotated out of the heavyweights into more defensive sectors like consumer staples and retail.
WATCH ON YOUTUBE MPC Morning Call 4th February 2026 – Stocks retreat as investors rotate out of tech Stocks ended deep in the red overnight, weighed by tech as investors rotated out of the heavyweights into more defensive sectors like consumer staples and retail. U.S. Treasury yields surged earlier in the week as traders sold off bonds following unexpectedly strong U.S. manufacturing data, signalling belief that interest rates might stay higher for longer. Meanwhile, gold and silver rebounded sharply after steep declines, restoring some investor confidence. Analysts such as Jake Dollarhide from Longbow Asset Management noted the continuing inverse link between bond yields and precious metals, suggesting both could remain volatile until the Federal Reserve leadership transition in May. Gold steadied after heavy volatility, rising more than 6% to around $4,950 an ounce after plunging to $4,400 earlier, easing some of the anxiety in commodities markets. Investor attention also turned to a packed corporate earnings calendar, with more than 100 S&P 500 companies reporting results that could shape market sentiment for weeks. AI-focused Palantir Technologies impressed with record fourth-quarter revenue of $1.41 billion, driven by strong government and enterprise demand for its artificial intelligence tools. In contrast, PayPal’s shares fell sharply after it missed expectations and announced a new CEO. Traders are awaiting upcoming reports from major tech names like AMD, Alphabet, and Amazon, which will offer fresh clues about AI chip demand, advertising revenue, cloud-computing trends, and consumer spending. Microsoft’s mixed reaction last week—strong profits but nervousness about AI investment payoffs—underlined how sensitive the sector remains to future growth expectations. In headline corporate moves, Elon Musk’s SpaceX announced a $1.25 trillion acquisition of xAI, joining two of the most-watched private firms in space and artificial intelligence. Analysts, including Dan Ives of Wedbush, speculated that Tesla could eventually merge into this growing Musk-led AI-space ecosystem. On the macro side, markets were lifted by a new U.S.-India trade deal that cut tariffs from 50% to 18%, easing policy uncertainty and boosting optimism for corporate investment and exports. However, the U.S. economy faced temporary turbulence as a partial government shutdown delayed the release of January’s jobs report. Oil prices also climbed after news that the U.S. shot down an Iranian drone near an aircraft carrier, although reports of upcoming U.S.-Iran nuclear talks in Turkey suggested a possible easing of geopolitical tensions. Earnings AMD -7% post market - beat quarterly earnings and revenue estimates, posting adjusted EPS of 1.53 dollars on 10.27 billion dollars of revenue versus forecasts of 1.32 dollars and 9.64 billion dollars, and guided Q1 2026 revenue to 9.50–10.10 billion dollars, above expectations of 9.37 billion dollars, offering a rare positive surprise for the pressured AI trade as investors debate lofty valuations and heavy spending. Government Bond Yields Commodities, Energy & FX ASX Overnight: SPI 8794 (-0.25%)
Read on MPC Markets Mosaic
