Markets Turn Defensive as Anthropic Spurs Tech Fears and Moody's Hits Indonesia
Risk appetite cooled across global markets as a fresh tech-led selloff in the U.S. spilled into Asia, with Indonesia's benchmark sliding 2% after Moody's revised its outlook to negative. Volatility spiked as the VIX climbed to 21.77.
Today's Snapshot
- S&P 500: 6,798.40 (−84.32 pts, −1.23% — last close)
- Nasdaq Composite: 22,540.59 (−363.99 pts, −1.59% — last close)
- Jakarta Composite Index: 7,180.20 (−146.80 pts, −2.00%)
- Gold: ~$4,868.13/oz (+0.01%)
- Silver: ~$74.51/oz (−3.73%)
Global Markets
Precious Metals
Gold traded around $4,868.13/oz. Investors remained cautious, utilizing the safe-haven asset to preserve capital following tech stock declines rather than pursuing gains.
Silver fell nearly 4% to $74.51/oz due to widespread industrial applications in electronics, solar panels, and industrial equipment. Tech stock weakness triggered investor concerns regarding demand slowdown in electronic device and industrial component production.
FX
Dollar Index (DXY): 97.92 (steady)
Heavy U.S. tech losses prompted reduced currency risk-taking, leaving dollar positions largely unchanged near 98.
GBP/USD: 1.2635 (pound weaker)
The pound declined approximately 0.6% as investors anticipated UK interest rate cuts from the current 3.75% level. Lower prospective rates reduce pound-holding returns, prompting currency sales.
Stock Market — What Happened Today
U.S. Equities
- S&P 500: 6,798.40 (−84.32 pts, −1.23%)
- Nasdaq Composite: 22,540.59 (−363.99 pts, −1.59%)
U.S. stocks declined sharply, technology-led, after Anthropic unveiled new Claude chatbot legal tools, intensifying concerns that AI expenditure growth outpaces near-term profit generation.
Indonesia
- Jakarta Composite Index: 7,180.20 (−146.80 pts, −2.00%)
The index dropped 2% following Moody's credit outlook reduction to negative (maintaining Baa2 rating). The downgrade reflects policy uncertainty under President Prabowo's administration, anticipated larger budget deficits, and central bank pressure concerns. Foreign investors sold approximately $1 billion in Indonesian shares during 2025, compounding weakness.
Volatility & Positioning
The VIX rose to 21.77, highest since 21 November, signaling escalating market fear and anticipated price volatility following tech sector deterioration.
What Traders Are Watching
- Whether U.S. tech stocks stabilize after recent heavy losses, as they continue driving overall market trajectory.
- Whether gold and silver maintain stability following sharp weekly swings.
- Whether the U.S. dollar holds current levels amid persistent investor caution.
“Risk comes from not knowing what you're doing.”
Yesterday's Market News – 5 February 2026
U.S. markets fell sharply led by technology stocks amid AI cost concerns and weaker growth outlooks. KOSPI sank nearly 4%, Nasdaq slid 1.51%, and VIX reached 15.8.
Read full recap →Sources
- Reuters — Wall Street ends sharply down as AI worries weigh
- Reuters — Tech-led selloff drags Asian stocks; Indonesia tumbles on Moody's outlook cut
- Reuters — Gold, silver set for weekly losses on tech selloff, stronger dollar
- Reuters — Stocks dive, silver looks for cover after rout
Disclaimer
This report is for informational purposes only and does not constitute investment advice, financial guidance, or a solicitation to buy or sell any financial instruments. Market data and figures are subject to change without notice. Trading leveraged or complex products involves significant risk and may not be suitable for all investors. Please ensure you fully understand the risks involved before trading.
Terms and conditions apply, for full terms and conditions, please visit centrinocapital.com.
