The US and European stock indices are under a sell-off

The US stock indices closed mixed on Thursday. By the end of the day, the Dow Jones (US30) rose by 0.11%. The S&P 500 (US500) decreased by 0.13%. The tech-heavy Nasdaq (US100) closed lower by 0.72%. The primary pressure on the market came from a large-scale sell-off in tech stocks as investors began to reassess the valuation of AI-related companies amid a busy corporate earnings season. The hardest hit was the high-tech sector after Microsoft’s shares plummeted by 10%. The company reported a slowdown in cloud business growth alongside a sharp increase in capital expenditures for AI infrastructure, triggering a chain reaction of selling in the sector and putting heavy pressure on the Nasdaq. At the same time, individual corporate reports supported the market: Meta shares soared 10% due to a revenue prognoses that exceeded expectations, IBM added 5%, and Caterpillar rose by 3.5% following strong results.

Bitcoin (BTC/USD) weakened by 2.8%, dropping to $82,100 and hitting its lowest level since November 21, 2025. Market pressure was driven by several factors, the key one being a sustained capital outflow from spot Bitcoin ETFs. From January 20 to 26, ETFs recorded a net outflow of approximately $1.14 billion, marking the largest weekly decline in inflows since the beginning of January. The bulk of the redemptions came from major funds, Fidelity’s FBTC, Grayscale’s GBTC, BlackRock’s IBIT, and Ark 21Shares’ ARKB, which collectively accounted for about 92% of all outflows. Notably, BlackRock’s iShares Bitcoin Trust, the largest Bitcoin ETF on the market, fell behind the same management company’s Gold ETF in terms of asset volume, highlighting a shift in investor interest toward more traditional safe-haven instruments.

Equity markets in Europe traded with no single trend on Thursday. The German DAX (DE40) fell by 2.07%, the French CAC 40 (FR40) closed up 0.06%, the Spanish IBEX 35 (ES35) dropped 0.10%, and the British FTSE 100 (UK100) closed higher 0.17%. European stock markets ended Thursday’s session lower overall amid weak reports from several of the region’s largest companies.

In Sweden, the Riksbank’s key interest rate was left unchanged at 1.75% for the third consecutive time following the first monetary policy meeting of 2026, which was fully in line with market expectations. The central bank noted that the rate is likely to remain at its current level for some time while the regulator assesses the impact of measures already taken, which are expected to support a recovery in economic activity and stabilize inflation.

On Friday, WTI crude oil prices declined to around $64 per barrel; however, for the month as a whole, they continue to show their best performance since July 2023, supported by a rising geopolitical premium. Investors remain cautious amid renewed tensions between the US and Iran after President Donald Trump called on Tehran to return to negotiations regarding the nuclear program. The market is particularly focused on risks to shipping through the Strait of Hormuz – a strategically vital narrow route between Iran and the Arabian Peninsula, through which a significant portion of global oil and LNG supplies passes daily. Any escalation in the region could lead to serious disruptions in global energy flows.

On Thursday, silver (XAG) dropped more than 6%, falling to around $110 per ounce, retreating from a record high of $120 amid active profit-taking by investors following a sharp price rally. Additional pressure on the market was exerted by ongoing geopolitical tensions: Iran stated it would “defend and respond as never before” to new threats from the US.

Asian markets mostly rose yesterday. The Japanese Nikkei 225 (JP225) grew by 0.03%, the Chinese FTSE China A50 (CHA50) rose by 1.34%, Hong Kong’s Hang Seng (HK50) increased by 0.51%, while the Australian ASX 200 (AU200) showed a negative result of 0.07%.

On Friday, the New Zealand dollar (NZD) declined to around 0.604 USD, but for the month, it maintained steady growth supported by increasing expectations of monetary policy tightening. The momentum for the “kiwi” was set by a series of strong macroeconomic data, specifically an unexpected acceleration of inflation last week, which boosted market confidence that the Reserve Bank of New Zealand (RBNZ) may move to raise rates toward the end of the year. Against this backdrop, the currency rose to a seven-month high on Thursday. Additional support came from fresh data showing consumer confidence in January reached its highest level since August 2021, as well as a trade surplus increase that exceeded expectations.