Morning Juice – US Session Prep (2nd February)

Sentiment
Stocks fell globally, with S&P 500 futures pointing to a fourth day of losses, as investors liquidated all kinds of risky assets amid a precious metals collapse. Bitcoin was trading near $77,500 following weekend losses.

The S&P 500 was expected to open 0.6% down, while Nasdaq 100 contracts were down 0.9%. The losses were more severe in Asia, with South Korea’s Kospi, a benchmark for the AI trade, falling 5.3%. European stocks increased marginally.

Markets were focused on extreme volatility in commodities. Gold pared losses after dropping by up to 10%. Silver fell 16% before recovering the majority of its losses. Brent fell almost 5% after Trump announced that Washington is in talks with Iran.

Monday’s actions are helping to unwind gains in some of the year’s top performers, such as Asian tech stocks, emerging-market assets, and commodities. Those trades had risen as investors sought alternatives amid uncertainties over US policies and concerns about the Fed’s independence.

Bitcoin reversed losses after falling about 13% since the beginning of the year, a drop that momentarily drove it back to levels seen before Trump retook the White House. The largest cryptocurrency has now fallen for four months in a row, with the selloff driven by a lack of buyers and dwindling confidence in its function as an alternative asset.

Docket
9:45 ET
US S&P Manufacturing PMI Final
Forecast: 52 | Prior: 51.9 | Range: 52.2 / 51.9

10:00 ET
US ISM Manufacturing PMI
Forecast: 48.5 | Prior: 47.9 | Range: 49.5 / 47.9

15:00 ET
US Treasury QRA Estimates

Speakers
12:30 ET
Fed’s Bostic speaks in moderated discussion with Dennis Lockhart, former president of the Federal Reserve Bank of Atlanta
No text, Q&A is expected with an audience

Good luck!