NEW YORK, Feb 2, 2026, 10:07 EST — Regular session
- The Dow climbed roughly 0.3% following an early decline, as markets settled after a fresh surge in commodity volatility
- A steep drop in metals and an impending margin hike weighed on traders, despite stronger-than-expected U.S. factory data
- Investors are setting their sights on Friday’s U.S. jobs report alongside a packed earnings calendar for the next move
The Dow Jones Industrial Average (.DJI) climbed roughly 160 points, or 0.3%, reaching 49,052 in early trading Monday, building on gains seen shortly after the open. The S&P 500 and Nasdaq Composite edged up as well.
This shift is crucial as the market wrestles with a cocktail of shocks: wild swings in precious metals, new data on U.S. growth, and a packed earnings calendar that might reshape rate expectations. Traders are snapping up opportunities after sharp sell-offs, reacting swiftly to thinning liquidity by pulling back risk, then jumping back in.
Gold and silver tumbled further after CME Group announced it would hike margin requirements on precious metals futures following Monday’s close—the cash traders need to hold to maintain their positions. The selloff kicked off when Donald Trump picked Kevin Warsh to replace Jerome Powell in May, stirring fresh doubts about the future of interest rates. By 9:10 a.m. ET, spot gold had dropped 3% to $4,718.35 an ounce, while spot silver slid 3.3% to $81.75. John Meyer of SP Angel described the metals as being “on a rollercoaster ride,” and Deutsche Bank’s Michael Hsueh added, “The conditions do not appear primed for a sustained reversal in gold prices.” Reuters
Wall Street’s key indexes kicked off lower, the Dow slipping 0.14% at the open. A sharp selloff in commodities shook investor confidence just as a heavy slate of earnings and crucial economic reports hit the calendar.
The macro backdrop shifted with an early data point. The Institute for Supply Management’s manufacturing PMI climbed to 52.6 in January — the first time it’s been above 50 in a year. New orders jumped to 57.1, comfortably in expansion territory. The report highlighted ongoing tariff-driven cost pressures. Powell commented last week that the recent inflation spike was linked to tariffs, noting “there’s an expectation that sometime in the middle quarters of the year we’ll see tariff inflation topping out.” Reuters
Within the Dow, Caterpillar and Visa drove much of the upward move, contributing nearly 174 points combined during Monday’s morning session. Since the Dow is price-weighted, a $1 change in any stock typically nudges the index by around six points.
Cross-asset moves remained sharp. The dollar index climbed roughly 0.4%, U.S. crude futures dropped over 4%, and silver futures surged close to 5% following last week’s decline.
The risk remains that metals continue to weigh on the broader market. Rising margins might prompt position cuts, and a steep drop in commodities could pull stocks down as funds rush to raise cash. Tariff-related cost pressures add another layer, muddying the usual “good news is good news” reaction to economic data.
Earnings season ramps up as about a quarter of the S&P 500 prepares to report this week. Attention centers on Alphabet, Amazon, and Advanced Micro Devices, especially after last week’s disappointing showing from Microsoft.
The next major event for the Dow arrives Friday. The Federal Reserve Bank of New York’s calendar lists the U.S. Employment Situation report set for 8:30 a.m. ET on Feb. 6. This data could once again shift rate expectations.
