Live: AUD Hits 70 Cents as Wall Street Tumbles on AI Stocks

Rowan Ashford

Published: February 4, 2026 5:10 PM ET

Recent market updates reveal significant movements in both Australian and global financial markets. The Australian dollar has dropped below 70 US cents, landing at 69.95 US cents, reflecting a 0.4% decline.

AUD Hits 70 Cents as Wall Street Tumbles on AI Stocks

Market Overview

As of February 4, 2026, the ASX 200 futures show a modest gain of 0.2%. However, Wall Street’s performance indicates a more tumultuous atmosphere. The Dow Jones ended with a 0.7% increase, while the S&P 500 and Nasdaq saw reductions of 0.2% and 1.2%, respectively. The overall tech sector is grappling with concerns over a potential bubble in AI investments.

Global Economic Indicators

Spot gold rose by 0.3%, hitting $4,949 per ounce.
Spot silver saw a more significant increase of 3.1%, reaching $85.84 per ounce.
Brent crude oil prices increased by 1.8%, now at $64.36 per barrel.
Bitcoin experienced a downturn of 3.3%, priced at $73,499.

Tech Sector Turbulence

Wall Street’s decline is largely attributed to fears surrounding speculative investments in AI. Major tech stocks have taken a hit, including a steep 16% drop for Advanced Micro Devices (AMD) due to disappointing revenue forecasts. Google’s parent company, Alphabet, fell by 2.3% ahead of its quarterly report, raising concerns about the returns on its AI investments.

Nvidia, a key player in the AI hardware market, also saw a loss of 3.7%, contributing to the overall 5.4% decline in the PHLX semiconductor index. Investors are anxiously awaiting fresh earnings reports to gauge the sustainability of AI-driven growth.

Domestic Economic Developments

In Australia, smaller banks have begun announcing increases in savings rates, following the Reserve Bank of Australia’s (RBA) recent 0.25% rate hike. Notably, the Bank of Sydney plans to raise its variable savings rates by February 10, aiming to benefit depositors.

Furthermore, major players in the weight loss drug market are experiencing contrasting forecasts. Eli Lilly anticipates a 25% increase in revenues for 2026, while its competitor, Novo, projects a decline of 5% to 13% in sales. This showcases a significant dynamic in the pharmaceutical sector.

As the landscape continues to evolve, investors and consumers alike are urged to pay close attention to both local and global market trends. The interplay of interest rates, currency valuation, and technology investments will shape economic trajectories moving forward.