Wall Street Decline Triggers ASX Slide; Bitcoin Plummets
A recent decline on Wall Street has significantly impacted the Australian Securities Exchange (ASX) and cryptocurrency values. The fall comes amid concerns about economic indicators and investor sentiment regarding big tech spending.
Wall Street Decline and ASX Impact
On February 6, 2026, Wall Street experienced considerable losses, triggered by Alphabet, Google’s parent company, which dropped 3.2%. Despite reporting stronger-than-expected profits, investors were alarmed by the company’s increased spending on artificial intelligence. The S&P 500 index fell by 0.9%, while the Dow Jones decreased by 486 points, or 1%. The Nasdaq composite also recorded a decline of 0.9%.
The ASX is anticipated to follow suit, with futures indicating a 0.7% drop at the market’s opening. On the previous day, the ASX had already lost 0.4%.
Key Economic Indicators
Significant economic news adds to the market’s volatility. A recent report highlighted that applications for unemployment benefits in the U.S. rose beyond expectations, suggesting increasing layoffs. In January alone, U.S. employers announced 108,435 layoffs, the highest since October and the worst January since 2009. Additionally, job openings hit a five-year low in December, hinting at a weakening labor market.
Given these developments, there are speculations that the Federal Reserve may consider cutting interest rates. This decision is aimed at bolstering economic activity, despite the potential risk of higher inflation.
Commodity Market Reactions
The bond market also saw notable shifts, with the yield on the 10-year Treasury declining to 4.21%. In the commodities sector, silver prices plunged by 10.4%, while gold dropped by 1.6%, falling to $4,872.80 per ounce. These declines reflect the market’s response to rising uncertainties and the correction of previously inflated prices in precious metals.
Cryptocurrency Market Decline
Similarly, Bitcoin suffered a significant setback, dropping below $68,000 from a record of over $124,000 in October. This downturn in cryptocurrency values has adversely affected related companies, as Coinbase Global saw a 9.3% decrease in its stock price.
Other firms in the technology sector also felt the impact. Qualcomm’s shares fell by 7.7%, despite beating profit and revenue expectations. Estee Lauder, while exceeding Wall Street’s targets, faced a 22.5% decline due to anticipated tariff-related losses.
Global Market Sentiment
Internationally, the sentiment was similarly negative, with major markets in Europe and Asia reflecting losses. London’s FTSE 100 fell by 0.9%, France’s CAC 40 was down by 0.4%, and Germany’s DAX lost 0.6%. South Korea’s Kospi experienced one of the largest declines, falling 3.9%.
Investors are closely monitoring these trends as they unfold, with higher volatility anticipated in both equity and cryptocurrency markets in the coming days.
