Global markets experienced mixed trading on February 4, 2026, with heightened volatility in the U.S. technology sector and broad downside pressure across Asia. Investors balanced macroeconomic uncertainty, currency fluctuations, and regional geopolitical developments, while Tel Aviv stocks showed selective strength despite uneven performance across local sectors. As February 5 trading opens, markets are positioned cautiously, with early signals pointing to recovery in some futures and continued sensitivity to global risk factors.

Americas: Tech Sell-Off Drives U.S. Indices Lower

U.S. equities ended February 4 under pressure, with the Nasdaq dropping 1.51% to 22,904.58, reflecting deepening concerns over technology valuations and interest rate sensitivity. The S&P 500 declined 0.51% to 6,882.72, while the Russell 2000 slid 0.90% to 2,624.55, highlighting small-cap vulnerability to global uncertainty. Conversely, Dow 30 futures gained 0.53% to 49,501.30, and S&P/TSX Composite advanced 0.56% to 32,571.55, suggesting selective resilience among industrials and financials. The VIX spiked 3.56% to 18.64, indicating elevated market anxiety.

Currency dynamics further influenced investor positioning. The US Dollar Index rose 0.16% to 97.78, supporting dollar-denominated assets but weighing on multinational revenue forecasts. February 5 is likely to see futures testing whether yesterday’s tech-led sell-off stabilizes or if macro data continues to pressure equities, with HNWI closely watching risk-on signals versus defensive allocations.

Europe: Rebound Amid Mixed Signals

European indices recovered moderately after prior declines, with the CAC 40 up 1.01% to 8,262.16 and FTSE 100 climbing 0.85% to 10,402.34. Germany’s DAX fell 0.72% to 24,603.04, while EURO STOXX 50 edged down 0.41% to 5,970.47, reflecting uneven investor sentiment across the continent. MSCI Europe declined 0.18% to 2,765.78, indicating a cautious approach toward cyclical sectors.

The Euro Index dropped 0.11% to 118.05, and the British Pound Index fell 0.33% to 136.52, reflecting mild currency volatility and uncertainty in capital flows. Investors are weighing corporate earnings, central bank commentary, and broader geopolitical factors before committing to regional equities. February 5 could see selective sector leadership, particularly in defensive and dividend-yielding names.

Asia: Regional Equities Face Broad Pressure

Asian markets closed February 4 with widespread losses. South Korea’s KOSPI Composite led declines, falling 3.56% to 5,179.73, pressured by technology and export-linked sectors. Hang Seng dropped 1.27% to 26,506.33, while Japan’s Nikkei 225 fell 1.02% to 53,737.01. Mainland China’s SSE Composite ended at 4,059.91, down 1.03%, and India’s S&P BSE Sensex fell 0.33% to 83,543.82.

Currency movements influenced regional trading. The Japanese Yen Index decreased 0.70% to 63.74, and the Australian Dollar Index dropped 0.29% to 69.94, reflecting macro sensitivity and investor caution. Markets were also affected by the observance of Kashmir Day in Pakistan, keeping Karachi Stock Exchange closed. For February 5, Asian markets are expected to react to currency stability, export data, and ongoing tech sector pressures.

Tel Aviv: Mixed Trading with Sectoral Divergence

Tel Aviv indices showed selective strength, with TA-35 edging up 0.02% to 4,120.51 despite broader declines in TA-90, which fell 0.69% to 4,064.05. TA-125 and related bank indices posted modest gains, supported by financial sector resilience. Total equity market turnover reached 5.16 billion NIS, while bond market activity was 3.98 billion NIS, indicating active liquidity in both asset classes. Sector-specific performance highlighted defensive positioning, with short-term investors favoring stable dividend-yielding and value-oriented stocks.

For February 5, local investors will likely monitor U.S. futures, European sector trends, and regional currency moves, while assessing Tel Aviv equities’ alignment with global risk sentiment and potential inflows from cross-border funds.

Outlook: Navigating February 5, 2026

Markets entering February 5 are positioned cautiously, balancing yesterday’s volatility with early signals of selective recovery. Key drivers include U.S. macro data, tech sector performance, European earnings, Asian export metrics, and local Tel Aviv liquidity conditions. Currency volatility, risk-on/off sentiment, and geopolitical developments remain critical. Investors should watch for stabilization in futures, regional divergences, and sector rotation dynamics, which could set the tone for mid-February trading and inform cross-border asset allocation decisions.

This comprehensive overview underscores the interconnectedness of global markets and the importance of monitoring macro, sectoral, and currency factors simultaneously to anticipate near-term market direction.