US equities advance after upbeat manufacturing data
On February 2, 2026, US stock indexes finished the session higher: the S&P 500 gained 0.54%, the Dow Jones Industrial Average rose 1.05%, and the Nasdaq 100 added 0.73%. The move was supported by the release of the January ISM Manufacturing report and broad strength in semiconductor and AI-infrastructure names.
The January ISM Manufacturing Index climbed 4.7 points to 52.6, beating expectations of 48.5. A reading above 50 signals expansion in manufacturing activity.
Fed messaging and rate expectations
Atlanta Fed President Raphael Bostic said the US economy has enough momentum that policy should remain “mildly restrictive,” and he does not foresee any rate cuts in 2026. In rate markets, pricing implied roughly a 12% probability of a 25-basis-point cut at the March 17–18 policy meeting.
Oil and crypto retreat
Energy stocks lagged after WTI crude fell more than 4% amid easing geopolitical risk tied to Iran-related diplomacy. Crypto-linked shares also weakened as Bitcoin slid more than 7% to roughly a 9.75-month low. Coinglass data showed nearly $590 million of long Bitcoin positions were liquidated over the weekend, adding pressure to the broader crypto complex.
China weakness and US funding backdrop
Global sentiment was weighed down by signs of slowing activity in China. The Shanghai Composite dropped 2.48% after January PMI readings for both manufacturing and non-manufacturing unexpectedly fell below 50, indicating contraction. In the US, investor caution also reflected the ongoing partial federal government shutdown, which entered its third day on Monday.
Treasury yields and the week ahead
The 10-year US Treasury yield rose to 4.269% as strong ISM data and a risk-on tone reduced demand for safe-haven bonds. Markets this week are focused on tariff headlines, key economic releases, and corporate earnings. Scheduled reports include ADP employment, the ISM Services Index, weekly jobless claims, and a revision to the University of Michigan consumer sentiment index. Earnings season remains active, with a large slate of S&P 500 companies set to report fourth-quarter results.
On February 2, 2026, US stock indexes finished the session higher: the S&P 500 gained 0.54%, the Dow Jones Industrial Average rose 1.05%, and the Nasdaq 100 added 0.73%. The move was supported by the release of the January ISM Manufacturing report and broad strength in semiconductor and AI-infrastructure names.
The January ISM Manufacturing Index climbed 4.7 points to 52.6, beating expectations of 48.5. A reading above 50 signals expansion in manufacturing activity.
Fed messaging and rate expectations
Atlanta Fed President Raphael Bostic said the US economy has enough momentum that policy should remain “mildly restrictive,” and he does not foresee any rate cuts in 2026. In rate markets, pricing implied roughly a 12% probability of a 25-basis-point cut at the March 17–18 policy meeting.
Oil and crypto retreat
Energy stocks lagged after WTI crude fell more than 4% amid easing geopolitical risk tied to Iran-related diplomacy. Crypto-linked shares also weakened as Bitcoin slid more than 7% to roughly a 9.75-month low. Coinglass data showed nearly $590 million of long Bitcoin positions were liquidated over the weekend, adding pressure to the broader crypto complex.
China weakness and US funding backdrop
Global sentiment was weighed down by signs of slowing activity in China. The Shanghai Composite dropped 2.48% after January PMI readings for both manufacturing and non-manufacturing unexpectedly fell below 50, indicating contraction. In the US, investor caution also reflected the ongoing partial federal government shutdown, which entered its third day on Monday.
Treasury yields and the week ahead
The 10-year US Treasury yield rose to 4.269% as strong ISM data and a risk-on tone reduced demand for safe-haven bonds. Markets this week are focused on tariff headlines, key economic releases, and corporate earnings. Scheduled reports include ADP employment, the ISM Services Index, weekly jobless claims, and a revision to the University of Michigan consumer sentiment index. Earnings season remains active, with a large slate of S&P 500 companies set to report fourth-quarter results.
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Twitter: @BigStakeTrades
Twitter: @BigStakeTrades