US stock markets experienced a volatile session on Monday, February 2, 2026, opening lower before staging a resilient rally to close higher. The initial weakness was driven by renewed pressure on technology shares and sharp swings in both cryptocurrency and precious metals markets, reinforcing a broader risk-off mood among investors.
The S&P 500 initially slipped 0.3%, moving in tandem with the Nasdaq Composite, while the Dow Jones Industrial Average fell 143 points (0.3%) at the open. Market sentiment was unsettled by a renewed decline in Bitcoin, which dropped below $80,000 for the first time since April, marking another leg lower for cryptocurrencies struggling to regain momentum after macro-driven sell-offs. Bitcoin later recovered modestly, trading above $78,000 by the session's end, which helped ease pressure on equity futures.
The slide in digital assets followed dramatic losses in precious metals late last week. Silver, which had more than doubled over the past 12 months, plunged around 30% on Friday, marking its worst single-day decline since 1980. Gold also suffered a sharp drop of roughly 9%. While both metals rebounded slightly on Monday, spot gold and spot silver were still down more than 3% each, contributing to the cautious investor tone.
Despite the morning pullback, all three major indices closed firmly in positive territory. The Dow Jones Industrial Average led the charge with a robust gain of 1.05%, the Nasdaq Composite rose 0.56%, and the S&P 500 advanced 0.54%. This synchronized upward move suggested a tempered but genuine risk-on sentiment returning to the market.
Investors are bracing for a pivotal week packed with corporate earnings and key economic data. More than 100 S&P 500 companies are scheduled to report results, including heavyweight names such as Amazon and Alphabet. Disney reported earnings that beat analyst forecasts, providing an early bright spot. Beyond earnings, market participants are looking ahead to the January US jobs report due Friday, with economists surveyed by Dow Jones expecting payrolls to have increased by 55,000 last month—a figure that could influence monetary policy expectations.
Political and monetary policy uncertainty added to the complex backdrop. Stocks were coming off a losing session on Friday when major benchmarks fell after President Donald Trump named Kevin Warsh as his nominee for Federal Reserve chair, potentially replacing Jerome Powell later this year. Meanwhile, the federal government entered a partial shutdown over the weekend after Congress failed to pass a funding bill before the deadline. House Speaker Mike Johnson said Sunday he believes the shutdown could be resolved by Tuesday.
