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Wall Street Plunges Amid Commodities Crash
2 Feb
Summary
- Dow futures dropped 150 points, S&P 500 futures down 35.
- Silver prices plunged over 6% below $80 an ounce.
- Nvidia's $100 billion OpenAI investment plan reportedly stalled.
Wall Street futures experienced a sharp downturn on Sunday evening local time, reacting to a severe commodities crisis from the previous week and emerging concerns about the sustainability of the AI sector. Dow futures saw a significant drop of 150 points, while S&P 500 and Nasdaq futures also registered substantial losses.
The market's focus remained intensely on commodities. Spot silver prices continued their decline, falling another 6% to trade below $80 per ounce, a steep drop from its previous peak of over $120. Bitcoin also experienced a significant correction, trading near $77,000 after a 35% decrease from its high.
A stronger US Dollar was identified as a key catalyst for the commodity sell-off. The US Dollar index rallied significantly, surpassing the 97 mark. This surge followed President Donald Trump's selection of Kevin Warsh as the next Fed Chair.
In the tech sector, reports from the Wall Street Journal indicated that Nvidia's ambitious plan to invest up to $100 billion in OpenAI has encountered significant roadblocks, with executives reportedly expressing reservations about the deal's finalization. This week's financial calendar also includes key earnings reports from major companies like Amazon, Alphabet, and Disney, alongside the release of January's non-farm payrolls data.
