Crude oil drops, Bitcoin and silver plunge!

【Introduction】U.S. stocks decline, Dow drops nearly 600 points; crude oil falls, silver plunges, Bitcoin drops below $65,000

On Thursday, February 5 (Eastern Time), the Dow Jones Industrial Average fell nearly 600 points, with the Nasdaq and S&P 500 indices declining for the third consecutive trading day. Most large tech stocks declined, with Microsoft down nearly 5%. Crude oil declined, silver tumbled. Bitcoin dropped below $65,000, erasing all gains since Trump’s election victory.

Dow closes down nearly 600 points

S&P 500 erases this year’s gains

The Dow fell 592.58 points, or 1.20%, to 48,908.72; the Nasdaq dropped 363.99 points, or 1.59%, to 22,540.59; the S&P 500 declined 84.32 points, or 1.23%, to 6,798.40.

Trump claimed he believes the Federal Reserve’s decision to cut the U.S. benchmark interest rate is “undoubted.” He is confident that his nominated next Fed chair, Kevin Wale, can understand his expectation to lower rates.

Fed Governor Cook said the Fed needs to bring inflation back to its target level soon, which is crucial for maintaining its credibility. Unless there is stronger evidence that inflation is continuing to fall to the target and the labor market remains stable, this will remain his focus. Additionally, Cook stated that monetary policy should not be used to manage government debt.

Regarding overseas central banks, the European Central Bank (ECB) kept its three key interest rates unchanged on Thursday. The ECB held a monetary policy meeting at its headquarters in Frankfurt, Germany, and decided to maintain the three main interest rates in the eurozone, in line with market expectations.

A report released Thursday by Challenger, Gray & Christmas showed that in January, U.S. companies announced the highest number of layoffs since the global financial crisis, while hiring intentions fell to their lowest point in the same period.

The U.S. Department of Labor reported that initial unemployment claims last week increased significantly, reaching the highest level since early December, reversing the recent downward trend.

Most large tech stocks decline

Most large tech stocks declined, with Microsoft down nearly 5%, Amazon down over 4%, Tesla down more than 2%, Nvidia down over 1%, Google down 0.54%, Apple down 0.21%, Facebook up 0.18%.

Amazon plans to spend $2 billion this year on data centers, chips, and other equipment. This massive AI investment has raised concerns among investors that profits will be squeezed before returns are realized. The stock traded lower after hours.

Wall Street strategists also issued warnings: the era of tech giants leading the market may be coming to an end. The current market situation is evident, with a sharp decline in software stocks triggering broad tech sell-offs.

The U.S. Federal Communications Commission (FCC) announced that NASA has filed an application for SpaceX’s new non-geostationary satellite system, which could deploy up to 1 million satellites, and is seeking public comments. The FCC said SpaceX submitted the application on January 30, with comments due by March 6.

Elon Musk’s advisors contacted index providers to seek early inclusion of SpaceX in market benchmarks to boost its stock price. Sources said SpaceX is developing plans for Starlink, expanding into new markets, including launching Starlink phones, direct terminal connectivity services, and space monitoring services.

Crude oil declines

Silver plunges

Over three days, crude oil first rose, with WTI up 4.8% in the first two days before retreating, settling at $63.29 per barrel. April Brent crude fell 2.8% to $67.55 per barrel.

“We do see some excess supply at the moment, but I think it’s balanced by the high uncertainty caused by geopolitical challenges,” said Shell CEO Wael Sawan in an interview. “This uncertainty and volatility will carry a premium.”

Silver plunged, dropping as much as 18% on Thursday. Spot silver closed at $72.12 per ounce on the U.S. stock market Thursday. Before press time, it had fallen below $70 per ounce.

After reaching a record high, silver prices have fallen more than one-third from the January 29 peak. Christopher Wong, a strategist at OCBC Bank, said, “Most asset classes seem to have weakened, including regional stocks and metals.”

Bitcoin drops below $65,000

On Thursday, Bitcoin fell below $65,000, hitting its lowest level since October 2024. The rally driven by speculation around Trump’s victory has now completely reversed.

Since reaching a historic high four months ago, Bitcoin has nearly halved in value, affecting other tokens, related ETFs, and companies like Strategy that hold large amounts of Bitcoin.