Global markets turned abruptly risk-off on February 5–6 as weakness in US technology names and worrying guidance from a major chip supplier rippled through equities, commodities and crypto markets. The Dow fell 592.58 points (1.2%), the Nasdaq lost 1.59% and the S&P 500 dropped 1.23%, while heavyweight Microsoft slid 4.95%, erasing roughly $152.4 billion of market value in a single session.
Earnings and guidance drove much of the move. Amazon posted stronger-than-expected Q4 revenue and modest profit growth, but its revenue guidance for the coming quarter and plans for roughly $200 billion of capital expenditure through 2026 unnerved investors and sent the stock down more than 11% in after-hours trading. Qualcomm plunged nearly 9% after warning that tight global memory supplies and rising prices—fueled by surging AI data‑centre demand—are compressing customers’ inventories and curbing near-term orders, a reminder that AI-driven demand is creating winners and acute supply bottlenecks at the same time.
Against that backdrop, many Chinese ADRs bucked the direction of US tech, with the Nasdaq Golden Dragon China Index up 0.9% and names such as NIO and Li Auto advancing. The divergent performance suggests selective flows into Chinese growth stocks that still offer attractive earnings narratives or shorter-term catalysts, even as broad risk appetite wanes elsewhere.
Markets beyond equities were roiled. Precious metals suffered sudden, deep selling: spot silver plunged nearly 20% to below $71 an ounce and spot gold fell about 4% to $4,774.48 an ounce. The scale of the move implies heavy deleveraging in leveraged metal positions and funds, and it underscores how a spike in risk aversion can trigger abrupt unwindings of previously crowded trades.
Cryptocurrencies were hit hardest: bitcoin slid more than 14% to roughly $62,912, and derivatives trackers show a dramatic liquidation event. Data from CoinGlass recorded about 430,667 liquidated positions in 24 hours, totaling roughly $2.06 billion (about RMB 143 billion). Prominent investors and analysts have gone public with bleak assessments—Michael Burry has argued bitcoin has behaved as pure speculation since its October peak, and CryptoQuant’s Carmelo Alemán has declared the market in a capitulation phase.
The episode illustrates how earnings shocks, supply‑side constraints in semiconductors, and concentrated leverage across asset classes can amplify one another. Memory tightness driven by AI spending is tightening margins and inventories in the chip supply chain, weighing on semiconductor and OEM suppliers; that in turn feeds into equity valuations. Meanwhile, forced selling in metals and crypto can accelerate price moves and impose losses on retail and leveraged participants, raising short-term systemic‑risk questions for trading venues and brokers.
Near term, investors should watch Q1 corporate guidance, memory and AI supply signals, and macro data and central bank commentary that might alter interest‑rate expectations. The market event underscores that volatility is not confined to a single sector: when leverage and sentiment shift, cross‑asset contagion can be swift and deep, making active risk management essential for institutions and retail holders alike.