Nasdaq Heads Lower but US Stock Futures Cut Losses as Commodities Meltdown Eases

US markets started the first full week of February with a nervous, headline-driven tone. Early on Monday, stock futures pointed to a weaker open, led by technology shares and the Nasdaq. But as the morning progressed, the downside pressure eased, and futures trimmed losses—helped by a slowdown in a sharp selloff across commodities that had rattled investors since late last week.

This mix—soft equity sentiment, choppy tech trading, and a sudden “risk-off” move in commodities—created a complicated backdrop for investors. On one hand, falling commodity prices can lower inflation expectations and eventually ease pressure on interest rates. On the other hand, a fast commodities drop can signal stress, forced selling, or rapidly changing expectations about growth and global demand.

Below is a detailed, English-language rewrite of the story, expanded with clear context and investor-friendly explanations, while keeping the key facts and market levels from the original report.

What Happened in US Stock Futures Before the Opening Bell

As the opening bell approached, US stock losses were smaller than earlier in the session. Futures on the Dow Jones Industrial Average were down less than 0.1% after previously indicating declines close to 1%. S&P 500 futures were down around 0.4%, while Nasdaq 100 futures were down roughly 0.7%, improving from earlier drops of about 1.4% and 1.8% respectively.

This pattern—sharp early selling that cools into a more controlled decline—often happens when markets try to “price in” multiple uncertainties at once. Traders and long-term investors may be reacting to:

• Corporate earnings risk: major companies reporting can change market mood quickly.
• Macro data risk: inflation and jobs numbers can shift rate expectations.
• Commodities volatility: abrupt moves in oil, metals, and gas can affect both inflation views and growth assumptions.

Big Tech and AI-Linked Stocks Set the Tone

Individual premarket moves suggested a cautious stance toward large-cap tech. Nvidia traded down about 1.75% in premarket action, while Apple was down around 0.9% and Microsoft down about 0.6%.

Even small percentage moves in mega-cap companies can have a big impact on major indexes because of their heavy weighting. When markets feel uncertain, traders often reduce exposure to the most crowded areas of the market—especially shares connected to high expectations like AI, cloud, and premium growth themes.

That said, premarket prices can be jumpy and sometimes misleading. Liquidity is lower before regular trading hours, and a few large orders can shift quotes. Still, the direction can reflect broader sentiment: investors were bracing for a heavy week of news, and that typically means more cautious positioning.

A Packed Earnings Calendar Put Investors on Alert

A major reason markets felt tense was the sheer number of high-profile earnings reports scheduled. The week’s highlights began with results from Palantir and Disney after the close on Monday. The calendar then included companies such as AMD, Merck, PepsiCo, and Pfizer on Tuesday; Google (Alphabet), Eli Lilly, AbbVie, Novartis, Uber, and Qualcomm on Wednesday; and Amazon on Thursday.

Why does this matter so much? Because earnings weeks don’t just move single stocks—they can shift entire sectors and even the overall market narrative. For example:

• Tech earnings can change how investors value AI spending, cloud growth, and chip demand.
• Healthcare earnings can affect defensive positioning and broader risk appetite.
• Consumer brands and media can influence views on household spending and the health of the economy.

In a market that already feels “priced for perfection” in certain areas, even a small disappointment in guidance can trigger a broader pullback. On the flip side, strong results and confident forecasts can calm nerves quickly.

The “Metals Meltdown” Became the Center of Attention

The most dramatic story in the session was not stocks—it was commodities. The report described a “metals meltdown” that began on Friday and deepened during Asian and European trading on Monday, before the declines started to ease.

In the original market update, gold was down about 2.3% around $4,775 per ounce after dropping sharply from near $5,600 the prior Thursday and touching lows around $4,400 in early trading. Silver was down about 1.8% near $83.54 per ounce after falling from above $120 and dipping below $72.

Those are large moves in a very short time. When gold and silver swing that hard, investors usually ask three questions:

1. Is this about inflation? Metals often react to changing views about inflation and interest rates.
2. Is this about the dollar and yields? Gold and silver can move opposite real yields or currency strength.
3. Is this forced selling? Big, fast drops can happen when leveraged traders are forced to unwind positions.

Even if you don’t trade commodities, these moves can matter. Commodities affect inflation expectations, which influence bond yields, which influence stock valuations—especially for technology and other long-duration assets.

Oil Pulled Back as Geopolitical Fears Didn’t Escalate

Oil also retreated after rising to four-month highs last week. West Texas Intermediate (WTI) crude dropped to about $62.22 per barrel, down around 4.5% on the day, according to the report.

In the commentary, analyst Joshua Mahony of Scope Markets pointed to a reduction in immediate geopolitical fear: concerns about a potential weekend attack on Iran did not materialize, and oil joined the broader decline across commodities.

Oil is a special case because it sits at the intersection of:

• Inflation: energy prices flow into transport, manufacturing, and consumer costs.
• Growth: cheaper energy can support demand, while expensive energy can act like a “tax” on the economy.
• Geopolitics: supply risks can reprice oil quickly, sometimes overnight.

When oil drops at the same time metals drop, markets may interpret it as “inflation cooling,” but they may also worry it signals “growth cooling.” The key is whether prices are falling because supply pressures eased, demand looks weaker, or speculative positioning is being unwound.

Other Commodities Also Fell—Gas, Copper, Iron Ore, and Steel

The report noted that natural gas, copper, iron ore, and steel prices were also down.

This broad-based softness can ripple into different parts of the stock market:

• Miners and materials producers may face pressure if selling prices fall.
• Industrials can benefit from lower input costs if demand remains steady.
• Energy companies may see margins compress if oil and gas decline quickly.

For everyday investors, the big takeaway is that commodities are not just “their own world.” They can change the market’s expectations for inflation, interest rates, and corporate profitability—especially in sectors with heavy exposure to raw materials.

Why Falling Commodities Can Calm Inflation Worries

The analyst quoted in the report argued that the combined price declines were “good for inflation expectations,” pushing back against inflation concerns that followed a 0.5% Producer Price Index (PPI) figure reported on Friday.

Here’s the simple logic:

If key commodities fall, companies may pay less for inputs. If companies pay less for inputs, they may be less likely to raise prices aggressively. And if consumer price pressures ease, central banks may feel less need to keep interest rates high.

However, it’s not automatic. A sudden commodities drop can also come from growth fears—meaning demand is expected to weaken. In that case, inflation might fall, but earnings expectations could also fall. That’s why markets can feel torn: the “rates story” might improve while the “growth story” might get worse.

A “Historic” Few Days: Markets React to the Fed Chair Nomination News

One of the most striking parts of the report was the description of recent price action as “nothing short of historic,” tied to the nomination of Kevin Warsh as the next Federal Reserve chair. The report said this nomination “sent shockwaves” through markets.

Why would that matter so much? The Federal Reserve chair is one of the most influential economic policymakers in the world. Markets try to anticipate how the Fed will behave on:

• Interest rates (how high, how long, how quickly to cut)
• Balance sheet policy (how much liquidity the Fed provides or removes)
• Communication (how clearly the Fed signals its future moves)

The report framed the nomination as a potential shift away from “easy money,” emphasizing a desire to shrink the Fed balance sheet and avoid constant intervention.

Whether that outcome happens or not, the key market point is this: when investors believe monetary support may be less available in future downturns, risk assets can reprice. That can mean higher volatility, lower valuations for some growth stocks, and more sensitivity to economic data.

Why Tech Can React Strongly to Rate Expectations

It’s worth explaining why the Nasdaq and big tech can be especially sensitive during “Fed shift” stories. A simple way to view it is:

Many technology companies are valued based on profits expected years from now. When interest rates rise, the present value of those future profits can fall. That’s why markets often say tech is “long duration” and can get hit harder when rates move up.

So when markets worry about a more hawkish Fed approach—meaning tighter policy and less support—tech-heavy indexes can lead declines. That’s consistent with the session’s early action: Nasdaq futures were weaker than the Dow’s.

Could “Hawkish Now” Still Mean “Cuts Later”?

The commentary in the report also suggested a twist: a hawkish stance could still come with “a flurry of cuts” if certain promises are followed through on.

That may sound confusing, but it reflects how markets deal with uncertainty. Policy can be tight in one direction (for example, shrinking the balance sheet) while rates can move in the other direction (for example, cutting rates if growth slows). Investors must weigh which tool matters more for liquidity and risk appetite at different times.

The practical investor lesson: don’t focus on only one headline word like “hawkish.” Instead, follow the actual policy path markets are pricing in—rates, balance sheet, and economic data together.

What Investors Were Watching Next: Jobs Report and Global Central Banks

Looking ahead, the report noted that the week ended with Friday’s closely watched US jobs report. It also pointed to rate decisions from central banks in England, Europe, and Australia.

Why are these events so market-moving?

• The jobs report shapes views on wage growth, consumer strength, and whether inflation pressures might persist.
• Central bank decisions affect currency moves, global liquidity, and investor risk preferences.
• International rate paths can spill into US markets through bonds, the dollar, and global equity flows.

In other words, it’s not just about what the Federal Reserve does. Markets are globally connected. If major central banks shift their tone, it can influence everything from commodity pricing to multinational earnings forecasts.

Practical Takeaways for Everyday Investors

When markets are noisy, it helps to focus on a few actionable ideas rather than trying to predict every move:

1) Expect volatility during heavy earnings weeks

With major companies reporting across tech, healthcare, consumer, and industrial sectors, large daily swings can happen quickly. A single earnings call can change sentiment for an entire theme (like AI spending or consumer demand).

2) Watch commodities as a “macro signal,” not just a trade

The sharp declines in metals and oil matter because they can change inflation expectations and influence bond yields. Even if you don’t own commodities, your stock portfolio can still be affected.

3) Separate “inflation good news” from “growth bad news”

Falling commodity prices may reduce inflation fears, but they can also reflect weaker demand expectations. The market reaction depends on which story becomes dominant in the days ahead.

4) Don’t overreact to premarket moves

Premarket trading can be thin and fast. It’s useful for reading sentiment, but the real test comes as volume increases during regular market hours.

5) Use reliable primary sources for macro releases

When the jobs report arrives, you can verify the numbers directly from the US Bureau of Labor Statistics at https://www.bls.gov/.

Frequently Asked Questions (FAQs)

FAQ 1: Why did Nasdaq futures fall more than the Dow?

The Nasdaq is more heavily weighted toward technology and growth stocks, which can be more sensitive to changing interest-rate expectations and shifts in risk appetite. In the session described, Nasdaq 100 futures were down more than Dow futures.

FAQ 2: What does it mean when “futures cut losses”?

It means futures were showing a smaller decline than earlier. For example, the Dow futures moved from pointing to nearly a 1% drop to being down less than 0.1% later on, indicating sentiment improved somewhat.

FAQ 3: Why do commodity price drops affect stocks?

Commodities influence inflation expectations and company input costs. Lower commodities can ease inflation fears, which can support stocks, but big drops can also raise concerns about weaker growth or forced selling.

FAQ 4: What happened to gold and silver in this market update?

The report said gold fell about 2.3% to around $4,775/oz after sliding sharply from near $5,600 and touching lows near $4,400. Silver fell about 1.8% to around $83.54/oz after dropping from above $120 and going below $72.

FAQ 5: Why did oil prices fall in the report?

Oil pulled back from recent highs, and the commentary pointed to geopolitical concerns (about a potential weekend attack on Iran) not materializing, which reduced immediate risk premiums. WTI was reported around $62.22 per barrel, down about 4.5%.

FAQ 6: What should investors watch after a week like this starts?

According to the report, key focus points included major corporate earnings, the upcoming US jobs report on Friday, and interest-rate decisions from major central banks in England, Europe, and Australia.

Conclusion: A Cautious Start, but the Week’s Real Tests Were Still Ahead

The early-week market tone was cautious: Nasdaq futures were weaker, tech names were lower in premarket trading, and investors were preparing for a dense calendar of earnings and economic events. At the same time, a sharp commodities selloff—especially in precious metals—began to stabilize, helping futures trim earlier losses.

For investors, the big message is balance. Commodities falling can be helpful for inflation expectations, but sudden drops can also reflect stress or changing growth assumptions. With major earnings and macro data still ahead, markets were positioned to react quickly—both up and down—depending on what the next headlines revealed.

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