Trade Deal Lifts Markets

Date: February 04, 2026

Trade Deal Lifts Markets

Summary

Market Snapshot

Prior Close
Asset Level Days Change
S&P 500 6,925.70 -0.85%
Nasdaq 23,255.19 -1.43%
Spot VIX 17.87 -0.72%
2 Year Bond Yield 3.59 +1 bps
10 Year Bond Yield 4.29 +2 bps
EUR/USD 1.1809 -0.11%
USD/JPY 156.80 +0.69%
GBP/USD 1.371 +0.07%
WTI Oil 62.14 -4.71%
Gold 5,023.49 +1.56%
Bitcoin 75,766.25 +0.14%

Prior Economic Events

Data Prior Cons Actual
Speech by Fed's Barkin---
API Weekly Crude Oil Stocks-247,000700,000-11.1m

Upcoming Economic Events

Data Prior Cons Time
MBA 30-Year Mortgage Rate6.24-07:00
ADP Employment Change41,00048,00008:15
Ny Fed Bill Purchases 1 To 4 Months--09:20
Services Sector PMI54.4053.5010:00
EIA Weekly Crude Oil Inventory-2.3m-2m10:30
EIA Weekly Gasoline Inventory224,000-10:30
Fed Cook Speech--18:30
Weekly Jobless Claims209,000212,00008:30
Speech by Fed's Bostic--10:50
Federal Reserve Balance Sheet--16:30

Yesterday's Recap

Fed Governor Barkin spoke on inflation progress, noting fog lifting but rates at neutral high end. Equities rallied modestly with Nasdaq down 1.43% to 23255, S&P down 0.84% to 6917, amid tech rotation; VIX fell to 17.87. Bond yields held steady at 3.59% for 2-year and 4.29% for 10-year, while USD/JPY edged up to 156.80. EUR/USD dipped to 1.1809, GBP/USD at 1.371, as dollar firmed. Commodities mixed: WTI oil rose 1.55% to 62.14 on API draw and Iran drone incident; gold recovered 6% to 5023 after selloff. Bitcoin slid 3.16% to 75766, extending losses.

The Day Ahead

ADP employment change at 8:15am expected at 48000, offering labor insights post-shutdown delays. Services PMI at 10am projected at 53.5, followed by EIA crude/gas stocks at 10:30am. Fed Cook speech at 6:30pm and Bostic at 10:50am may signal rate cut pace amid hawkish Fed chair nominee. Weekly jobless claims at 8:30am forecast at 212000. (cont...)

Other Economic Notes

US-India trade pact signals supply chain gains, easing tariff risks for manufacturers. Global AI investment imperative urges private funding to avoid deficits, per BlackRock's Fink. Italy's GDP growth modest at 0.5% for 2025, cautioning Eurozone outlook.

Fed Watch

In rate-cutting cycle, Barkin's neutral stance favors gradual pace, but Warsh nomination tilts hawkish, pricing fewer cuts. Markets expect only two 2025 reductions, post-data confirmation. Underlying inflation progress supports easing, yet geopolitical risks warrant caution.


Source: https://robomacro.com/Research_Notes/US_Macro_Daily_20260204.html