NEW YORK, February 2, 2026, 09:33 EST — Regular session
- Microsoft shares slipped roughly 0.8% in early trading, extending the drop sparked by last week’s earnings report
- Gold and silver took a steep dive, while fresh doubts about the Fed chair are rattling investors
- Traders will focus on ISM PMI figures Monday and Wednesday, followed by Friday’s U.S. jobs report
Microsoft shares slipped in early Monday trading, adding to a volatile run for the megacap amid a commodities-driven risk-off mood. The stock dropped roughly 0.8% to $430.29.
This matters since Microsoft ranks among the largest components in U.S. equity benchmarks, meaning even a minor shift can pull index performance early in the week.
It’s also at the heart of the market’s debate on whether heavy AI spending will soon translate into lasting profits or just fatter data-center costs.
U.S. stock futures dipped before the open, pressured by steep drops in gold and silver and the CME Group’s hike in margin requirements, which tightened the grip on leveraged traders. “There’s a ripple effect in stocks,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors, noting investors are searching for the next leadership driver. Markets were also digesting President Donald Trump’s nomination of Kevin Warsh to head the Federal Reserve, alongside a brief government shutdown that started over the weekend. (Reuters)
Metals took the spotlight with sharp moves. Spot gold plunged as much as 10% before settling about 2.3% lower, while silver dipped roughly 3.8% after tumbling up to 15%. The selloff came as higher margin requirements pushed some traders to add cash just to hold their positions. (Reuters)
Microsoft is still dealing with the aftermath of last week’s quarterly report, as investors zeroed in on AI investment costs and cloud growth rates. The company revealed capital spending hit $37.5 billion for the quarter, a jump of nearly 66% year-over-year, with Azure revenue climbing 39%. “Revenues are up 17% and the cost of revenues are up 19%,” noted Eric Clark, portfolio manager at the LOGO ETF. Executives also warned that increasing memory-chip prices may squeeze cloud profit margins down the line. (Reuters)
However, a downside risk remains. Should AI demand hold up but monetization fail to catch pace with spending, investors might continue valuing Microsoft as a cash-flow play, applying a steeper hurdle rate.
Rates factor heavily into this mix. Joe Abate, U.S. rates strategist at SMBC Capital Markets, weighed in on the Fed transition, noting that while Warsh “may want a smaller balance sheet,” actually shrinking it “is a nonstarter.” His comments highlight just how tricky balance-sheet policy remains for markets already on edge. (Reuters)
Upcoming data points are just around the corner. The Institute for Supply Management’s manufacturing PMI drops Monday at 10:00 a.m. EST, followed by the services PMI on Wednesday, February 4, same time. (Institute for Supply Management)
Next up is the U.S. January jobs report, due Friday, February 6 at 8:30 a.m. EST. A robust reading might reinforce steady rate bets and weigh on long-duration tech stocks. If the data disappoints, it could dial down some of that pressure. (Bureau of Labor Statistics)
