Global Stock Market Update: 4 February 2026

Global stock markets showed a cautious tone on 4 February 2026, as investors navigated volatility caused by tech sell-offs and mixed economic signals. U.S., European, and Asian equities experienced varying trends, reflecting concerns over technology valuations and geopolitical uncertainties.

US Stock Market Performance

Major U.S. indices declined sharply, led by technology stocks. The Nasdaq Composite fell approximately 2.5%, while the S&P 500 and Dow Jones Industrial Average dropped 1.8% and 1.5%, respectively. Investors reacted to new AI tools and their potential impact on software firms, fueling uncertainty in tech-heavy sectors.

Tech Sector Pressure

Software and IT giants faced significant declines, prompting a rotation of capital into safer assets. Analysts note that tech valuations remain high, making the sector vulnerable to rapid corrections.

Asian Markets Overview

Asian equities mirrored global sentiment, with Indian IT stocks like Infosys, TCS, and Wipro falling up to 7%. Chinese and Japanese markets showed mixed performance, with gains in consumer sectors offsetting losses in technology and export-driven industries.

Emerging Markets Trends

Emerging markets saw selective investor interest, particularly in sectors less exposed to AI disruption. Indonesia and Southeast Asian markets focused on Shariah-compliant equities and domestic growth opportunities.

European Market Highlights

European stocks closed slightly lower, influenced by global tech sell-offs and ongoing uncertainties in energy and banking sectors. The STOXX Europe 600 index ended the day down by 0.8%, reflecting cautious investor sentiment.

Factors Driving Global Equity Volatility

• Tech Sell-offs: AI tool launches and high valuations created uncertainty.


• Geopolitical risks: Ongoing tensions in the Middle East and Asia impacted investor sentiment.


• Central bank policies: Interest rate expectations and inflation concerns affected market flows.


• Safe-haven rotation: Investors moved to assets like gold and bonds amid equity market volatility.

Market Outlook

Analysts suggest that short-term volatility may persist, especially in technology sectors. Investors are advised to diversify portfolios, monitor corporate earnings, and stay aware of global economic developments to navigate the fluctuating market landscape effectively.