Investor appetite for risk stayed weak as Washington’s budget fight and new Middle East tensions pushed stocks lower, lifted oil and gold, and kept crypto under pressure.
Crypto
Crypto total market capitalization slid to $2.58T (-2.12%), with the Fear & Greed Index at 14 (Extreme Fear), the Altcoin Season Index at 33/100, and the average crypto RSI at 44.28.
Bitcoin traded at $76,077 (-2.96%), while Ethereum eased to $2,254 (-1.76%) and Solana sank to $97.05 (-5.87%).
On spot ETFs, flows flipped from about $562 million of net inflows on Feb. 2, when IBIT took in around $142 million, to roughly $272 million of net outflows on Feb. 3, even as IBIT still saw about $60 million of new flows.
Commodities
Brent held around $67.78, while WTI hovered at $63.48, modestly higher on the week’s rebound, supported by fears that U.S.–Iran tensions could disrupt flows near the Strait of Hormuz and by signs of a sharp draw in U.S. crude stockpiles from industry data.
Gold snapped back near $5,050–$5,100, rebounding hard from Monday’s sell-off as safe-haven demand returned alongside lingering uncertainty around Fed leadership and the Middle East chaos.
Stock Market Indices
In the U.S., the S&P 500 fell to 6,917.82 (-0.84%), the Dow slid to 49,240.99 (-0.34%), and the Nasdaq sank to 23,255.19 (-1.43%), with money still moving out of software stocks as investors question whether AI will take their profits faster than those companies can adjust.
In Asia and Europe, Nikkei 225 futures inched up to 54,580 (+0.11%), while the FTSE rose to 10,414.8 (+1.11%), showing a steadier tone, even as worries about global tech stocks are still hanging over the market.
Geopolitics & Market Sentiment
On the diplomatic front, the U.S. and Iran are expected to hold nuclear talks in Oman on Friday, but markets are braced after the U.S. shot down an Iranian drone near the Abraham Lincoln carrier and Iranian forces reportedly approached a U.S.-flagged tanker.
Meanwhile, Trump signed a spending deal ending a four-day partial U.S. government shutdown. However, Homeland Security funding now runs only until Feb 13, keeping markets expecting another budget fight.
On the economic and central bank front, the shutdown has delayed key U.S. jobs data, adding uncertainty to the Fed path even as traders lean toward fewer cuts this year. Meanwhile, the dollar softened against the euro, with policy clarity still slippery under the incoming leadership debate.
Across the Atlantic, eurozone inflation is expected to stay below the ECB’s 2% target, giving the central bank room to keep rates on hold while it watches whether the strong euro pushes prices even lower.
