Nasdaq Drops Over 1% as Safe-Haven Flows Surge into Gold and Silver

Market Overview

Yesterday delivered a clear shock to the software sector, triggering a classic “black swan” reaction across markets. A newly released tool from Anthropic reignited concerns that traditional software outsourcing and SaaS business models could face structural disruption. As a result, U.S. software stocks suffered their worst single-day performance since April last year. Capital rotated aggressively out of high-valuation technology names and into small-cap stocks, value plays, and physical assets.

The Nasdaq Composite closed down more than 1%, while the Russell 2000 defied the broader selloff, finishing up 0.3%. The so-called “Magnificent Seven” declined collectively by around 1.5%, with NVIDIA plunging as much as 5% intraday. On the single-stock front, PayPal collapsed 20% following earnings, while AMD fell more than 7% in after-hours trading on disappointing guidance.

From a macro and rates perspective, U.S. Treasury yields edged lower, with the 10-year yield slipping to 4.266%. The U.S. Dollar Index eased by 0.15%, continuing to trade near recent lows.

Cryptocurrencies and commodities experienced extreme volatility.

Crypto market rout: Digital assets saw a sharp intraday liquidation. Bitcoin briefly fell below its April 2025 low, while Ethereum approached the USD 2,100 level. Although prices rebounded into the close, both assets still posted sizable daily losses.

Violent rebound in precious metals: Driven by heightened risk aversion, spot gold surged 6.2%, once again approaching the USD 5,000 threshold. Silver spiked as much as 12% intraday and held gains of over 7% at the close.

Energy supported by geopolitics: Crude oil rose more than 2% after reports that U.S. forces shot down an Iranian drone over the Arabian Sea, reviving tensions between Washington and Tehran.

Hot Topics to Watch

● Bitcoin plunges nearly 8% intraday

Bitcoin fell to its lowest level since Donald Trump returned to the White House, erasing all gains accumulated since his election. Despite a crypto-friendly policy stance and rising institutional adoption under the Trump administration, Bitcoin has now declined more than 40% from its all-time high set in October 2025.

● U.S. House approves government funding bill

The U.S. House of Representatives passed a funding agreement negotiated between President Trump and Senate Democrats, raising hopes that a partial government shutdown may soon come to an end. The bill has been sent to the president for signature, passing by a narrow margin of 217–214.

Key Events to Monitor (GMT+8)

21:15 (US) January ADP Employment Change

21:30 (US) U.S. Treasury Quarterly Refunding Statement

22:45 (US) January S&P Global Services PMI (Final)

23:00 (US) January ISM Non-Manufacturing PMI

23:30 (US) EIA Weekly Crude Oil Inventories (as of Jan 30)

Overnight

01:00 (US) Speech by Thomas Barkin, 2027 FOMC voter and President of the Richmond Fed