US Stocks Fall as Commodity Rout Shakes Markets – February 2026 Update

U.S. Stock futures and commodity markets experienced a turbulent start to February, rattled by a sharp selloff in precious metals and shifting expectations regarding Federal Reserve policy. The volatility extended into subsequent days, impacting energy markets and software stocks as investors recalibrated risk assessments amid geopolitical developments and concerns about artificial intelligence disruption.

Commodity Rout Triggers Market Concerns

On February 2nd, U.S. Stock index futures declined as a “violent selloff” in precious metals unsettled investors, according to Reuters. Gold prices dropped as much as 6%, while silver tumbled 10%, prompting CME Group to increase margin requirements for these metals following a historic plunge on Friday. This margin increase forced leveraged investors to unwind positions, exacerbating the downward pressure. U.S.-listed gold and silver mining companies saw their shares decline in premarket trading, with Newmont falling 0.5%, Harmony Gold and Sibanye Stillwater dropping 1.2% and 0.7% respectively, and Hecla Mining and Endeavour Silver slipping 0.4% and 1.2%.

The selloff in precious metals coincided with President Trump’s nomination of Kevin Warsh as the next Federal Reserve chair, a move widely interpreted as hawkish. Daniela Hathorn, senior market analyst at Capital.com, noted that “markets are trading cautiously as investors navigate a dense macro calendar and recalibrate expectations around the pace of global monetary easing.” She added that this adjustment occurred against a backdrop of “thin liquidity and heightened sensitivity to macro headlines, amplifying intraday volatility.”

Energy Markets React to Geopolitical Signals

The downturn extended to energy markets, with oil prices falling 5% after President Trump indicated that Iran was “seriously talking” with Washington, signaling a potential de-escalation of tensions and easing concerns about supply disruptions. Exxon Mobil and Chevron both experienced declines, falling between 1.1% and 1.8%.

By February 2nd at 7:00 a.m. ET, Dow E-minis were down 55 points (0.11%), S&P 500 E-minis were down 34.5 points (0.5%), and Nasdaq 100 E-minis were down 217.5 points (0.85%). The volatility index (VIX) climbed to 18.59, nearing a two-week high.

Oil Prices Stabilize Amid Ongoing Negotiations

Despite the initial decline, oil prices stabilized on Tuesday, after falling more than 4% in the previous session. Brent crude futures rose 17 cents to $66.47 per barrel by 12:17 GMT, while West Texas Intermediate (WTI) crude traded at $62.38, up 24 cents. Earlier in the session, both Brent and WTI had fallen to their lowest levels in a week, at $65.19 and $61.12 respectively.

Reuters reported that Iran and the United States were expected to resume nuclear talks on Friday in Turkey. President Trump cautioned that “things bad” could happen if an agreement wasn’t reached, while also noting the presence of U.S. Warships heading towards Iran.

Software Stocks Hit by AI Disruption Concerns

A broader wave of selling impacted global software stocks beginning on Wednesday, reflecting growing concerns about the potential for artificial intelligence to disrupt the industry’s business models. European stocks in data analytics, professional services, and software experienced further declines, following similar drops in global rivals. The launch of Anthropic’s legal AI model served as a renewed reminder of the threat facing companies perceived as vulnerable to AI disruption.

Specifically, RELX and Wolters Kluwer, both providers of analytical services to the legal industry, hit new lows, with declines approaching 3%. Shares of the London Stock Exchange Group fell another 6%, extending a nearly 13% drop from the previous day. Indian IT service exporters also experienced significant declines, while Japanese companies NEC, Nomura Research, and Fujitsu fell between 7% and 11%, dragging down the Nikkei index.

The selloff occurred against a backdrop of increasing concerns about a potential tech bubble, raising risks to financial stability. The catalyst for the Tuesday decline was the release of Anthropic’s AI-powered legal add-on for its Claude chatbot. Advertising companies, considered particularly exposed to AI, also came under pressure, with Publicis falling almost 5% and WPP losing 3.3%. SAP, Europe’s largest software company, saw its shares decline by over 3% following a disappointing cloud revenue forecast that erased around $40 billion from its market value.

While chipmakers like Nvidia and AI “hyperscalers” like Microsoft have seen their stock prices reach record highs, regulators and policymakers, including the International Monetary Fund and the Bank of England, have warned about the risk of a dangerous bubble forming.

Broad Commodity Selloff and Bitcoin Volatility

On Thursday, commodity prices fell sharply, led by silver, as investors reversed a previous flight to safe-haven assets following easing geopolitical tensions. Silver plunged as much as 15%, and oil prices fell by over a dollar per barrel after the U.S. And Iran agreed to continue talks and following a positive phone call between U.S. And Chinese leaders. A stronger dollar, reaching a two-week high, added further pressure to commodity prices.

Gold prices also retreated from a recent high, and silver experienced a significant drop. The previous week had seen gold reach a record $5,594.82 per ounce and silver hit a historic high of $121.64.

Bitcoin Recovers Slightly Amid Weekly Losses

Bitcoin rebounded to above $65,000 on Friday, as the broader selloff in technology stocks began to show tentative signs of slowing. However, the cryptocurrency was still on track for its worst weekly performance since late 2022, following months of difficulty since a sharp correction in October 2025 cooled investor enthusiasm for digital assets. Bitcoin was up 4.4% at $65,894.20, recovering some losses after falling to a low of $60,008.52 earlier in the day. Despite the rebound, it was still down nearly 14% for the week, the largest weekly decline since November 2022.

Ether also saw a modest recovery, rising 4% to $1,921, after falling to a nearly 10-month low of $1,751.94. It was poised for a weekly decline of around 16% and a year-to-date loss of 35%.