Nasdaq heading lower but US stock futures cut losses as commodities meltdown eases

• Gold plunged from near $5,600/oz last Thursday to lows of $4,400/oz before stabilizing at $4,775/oz (down 2.3%), while silver dropped from above $120/oz to below $72/oz and WTI crude fell 4.5% to $62.22/barrel
• Kevin Warsh's nomination as Fed chair sent 'shockwaves' through markets, signaling an end to easy money policies and raising concerns about reduced central bank intervention during future market stress
• Major earnings reports scheduled include AMD, Merck, PepsiCo, and Pfizer on Tuesday; Google, Eli Lilly, and Qualcomm on Wednesday; and Amazon on Thursday, with Friday's jobs report closing the week

Market Summary: US Futures Recover as Commodity Sell-Off Eases

Market Performance:

US stock futures pared significant early losses on February 2, 2026. Dow Jones futures fell less than 0.1% (from earlier 1% declines), while S&P 500 and Nasdaq 100 futures dropped 0.4% and 0.7% respectively, recovering from earlier losses of 1.4% and 1.8%.

Commodity Meltdown:

A historic metals sell-off that began Friday showed signs of stabilizing. Gold plunged 2.3% to $4,775/oz after crashing from near $5,600/oz Thursday to lows of $4,400/oz. Silver tumbled from above $120/oz to below $72/oz before recovering to $83.54/oz (down 1.8%). WTI crude oil fell 4.5% to $62.22/barrel from four-month highs. Natural gas, copper, iron ore, and steel also declined.

Key Catalyst:

The nomination of Kevin Warsh as next Fed chair sent shockwaves through markets, signaling an end to easy monetary policy. Warsh's stated intention to shrink the Fed balance sheet and reduce intervention raises concerns about future market support, particularly if an AI-led market collapse materializes.

Market Implications:

Commodity price declines are positive for inflation expectations, offsetting concerns from Friday's 0.5% PPI reading. However, analysts warn markets could lose the "key factor" that delivered consistent 10% average S&P 500 returns. Potential for aggressive Fed balance sheet reduction poses risks, though rate cuts may follow if presidential promises are honored.

Upcoming Events:

Major earnings this week include AMD, Merck, PepsiCo, Pfizer, Google, Eli Lilly, Qualcomm, and Amazon. Friday's jobs report and central bank decisions from England, Europe, and Australia will provide additional market direction.