U.S. Markets Under Pressure as Tech Sell-Off Deepens, Commodities Retreat and Macro Risks Rise

Index Update:  U.S. equities extended their decline on Wednesday as a sharp sell-off in technology stocks weighed heavily on broader markets, with the Nasdaq dropping 1.6% and the S&P 500 slipping 0.3%. The downturn was led by steep losses across semiconductor names following AMD’s weak outlook, which triggered widespread pressure on the chip sector, while software stocks remained weak amid concerns over AI-driven competition and pricing. In contrast, defensive and value sectors outperformed, supported by a strong earnings-driven rally in Amgen that helped lift the Dow higher. Softer economic data, including a sharp slowdown in private payroll growth, reinforced signs of cooling labor demand and accelerated the rotation away from high-growth technology shares.

Market Movers:  On Wednesday, the top gainers were Boxlight Corporation (+56.59%), followed by Silicon Laboratories, Inc. (+48.89%). On the contrary, Ambitions Enterprise Management Co. L.L.C. (-76.63%), and Rail Vision Ltd. (-23.78%) declined the most the same day.

Commodities Update:  Oil prices retreated on Thursday, with both WTI and Brent crude falling over 1% after Iran confirmed upcoming talks with the United States, easing fears that escalating Middle East tensions could disrupt global energy supplies. The announcement of negotiations in Oman revived hopes of diplomatic progress on Iran’s nuclear program, though disagreements remain over the scope of discussions, including missile development and regional security issues. The pullback followed a two-day rally in oil prices that had been driven by heightened geopolitical risk in the region. Precious metals came under renewed pressure on Thursday as hawkish signals from the Federal Reserve and a stronger dollar weighed on prices. Gold eased to around $4,920 per ounce, paring gains from its recent rebound after Fed officials signaled caution on rate cuts, while markets reassessed expectations following Kevin Warsh’s nomination as the next Fed chair. Silver saw sharp losses, plunging more than 16% as heightened volatility and fading dip-buying interest triggered a broad selloff across metals. Meanwhile, copper remained weak below $5.85 per pound after a steep decline in the prior session, pressured by rising supply in China, growing inventories in major trading hubs, and slowing demand ahead of the Lunar New Year. Easing geopolitical risk following planned U.S.–Iran talks also reduced safe-haven demand across commodity markets.

Macro Updates:  U.S. Job Cuts Surge to Post-2009 January High as Employers Turn Cautious on 2026 Outlook

U.S.-based employers announced over 108,000 layoffs in January 2026, marking the highest monthly total since October and the largest January figure since 2009, reflecting growing corporate caution about the economic outlook. The sharp rise was driven largely by transportation and technology sectors, led by major cuts at UPS and Amazon, while healthcare also recorded its highest layoffs since 2020. At the same time, hiring plans fell to a record low for January, underscoring weakening confidence among employers heading into 2026.

Bonds Commentary:  The 10-year U.S. Treasury yield edged slightly lower to around 4.26% on Thursday but stayed near multi-month highs as markets continued to price in a slower pace of Federal Reserve rate cuts. Hawkish commentary from Fed officials, along with expectations tied to Kevin Warsh’s potential leadership favoring tighter balance sheet management, reinforced the higher-yield environment. While mixed economic data showed weaker private hiring but stronger services activity, Treasury issuance plans leaned toward short-term bills, aiming to contain borrowing costs amid elevated rates.

Futures Update:  U.S. equity futures traded in a narrow range around unchanged levels on Thursday as investors digested earnings updates from major technology companies and weighed the impact of a recent downturn in software stocks. Dow futures were down 39 points, or 0.1%, while S&P 500 futures edged up 6 points, or 0.1%. Nasdaq 100 futures outperformed slightly, gaining 65 points, or 0.3%.

The S&P 500 Index continues to trade within a well-defined primary uptrend, supported by a sequence of higher highs and higher lows on the daily chart. Recent price action near the 6,850–7,000 zone reflects a phase of consolidation following a strong rally rather than a trend reversal. The psychological 7,000 level remains a key resistance, while immediate support is seen around 6,800–6,750, followed by a stronger base near 6,600. Momentum has cooled but shows no signs of capitulation, indicating healthy digestion of gains. Overall, the technical bias remains neutral-to-bullish, with trend structure intact.