Global assets experienced a severe sell-off on Thursday, with the Nasdaq and S&P 500 indices declining for the third consecutive session. The S&P 500 erased all its gains for the year. In the U.S. market, the Dow Jones Industrial Average fell by 592.58 points, or 1.20%, to close at 48,908.72. The Nasdaq Composite dropped 363.99 points, or 1.59%, to 22,540.59, while the S&P 500 declined 84.32 points, or 1.23%, to 6,798.40. Tesla Motors (TSLA.US) fell 2%, NVIDIA (NVDA.US) dropped over 1%, and Oracle (ORCL.US) plunged 7%. The Nasdaq Golden Dragon China Index closed 0.9% higher, with NIO (NIO.US) rising 6%.
European markets also closed lower. Germany's DAX 30 index decreased by 159.94 points, or 0.65%, to 24,492.83. Britain's FTSE 100 fell 101.89 points, or 0.98%, to 10,300.45. France's CAC 40 declined 23.99 points, or 0.29%, to 8,238.17. The Euro Stoxx 50 dropped 42.62 points, or 0.71%, to 5,927.85. Spain's IBEX 35 fell 388.34 points, or 2.15%, to 17,714.16, and Italy's FTSE MIB lost 823.93 points, or 1.77%, to 45,812.50.
Cryptocurrencies saw sharp declines. Bitcoin plummeted over 13%, hitting a low of $62,333. Ethereum plunged more than 14% to $1,836.
The U.S. dollar index, which measures the greenback against a basket of six major currencies, rose 0.21% to 97.824. By the close of New York forex trading, one euro traded at $1.1794, down from $1.1809 the previous day. One pound was worth $1.3549, down from $1.3663. The dollar bought 156.90 Japanese yen, up from 156.82, and 0.7774 Swiss francs, up from 0.7766. It also rose to 1.3682 Canadian dollars from 1.3668, and to 9.0363 Swedish krona from 8.9864.
Precious metals crashed. Spot gold fell 3.81% to $4,776.26 per ounce. Spot silver extended losses to 19%, trading at $71.40 per ounce. The CME Group announced adjustments to margin requirements for certain futures contracts, including gold, silver, and aluminum. The new margin rate for gold was raised to 9%, and for silver to 18%, effective after the close on February 6.
Oil prices declined. March WTI crude fell 2.8% to settle at $63.29 per barrel on the New York Mercantile Exchange. April Brent crude dropped 2.8% to $67.55 per barrel.
U.S. job openings in December fell to their lowest level since 2020. The number of vacancies unexpectedly dropped to 6.54 million from a downwardly revised 6.93 million in November, missing market expectations. The decline was primarily in professional and business services and retail, while layoffs increased, reflecting larger cuts in transportation and warehousing. Hiring rose but remained low overall. The data indicated that businesses remain cautious about hiring amid economic uncertainty. The ratio of job openings to unemployed persons fell to 0.9, a key indicator monitored by the Federal Reserve, down from a peak of 2:1 in 2022.
Bank of Canada Governor Tiff Macklem warned that cutting interest rates before the economy fully adjusts to structural changes could fuel future inflation. He stated that monetary policy should not attempt to compensate for lost supply and that stimulating demand excessively could hinder necessary structural adjustments.
The European Central Bank is working to expand its liquidity mechanisms to more countries to reduce costs and enhance the euro's international role, according to sources. Details are still being discussed, with an announcement expected during the Munich Security Conference next week. The mechanisms allow foreign central banks to borrow euros using euro-denominated collateral, primarily for use during crises.
Bank of England Governor Andrew Bailey suggested that market expectations of a 50/50 chance for a rate cut in March were "not unreasonable." The BOE's recent decision to hold rates steady by a narrow 5-4 vote surprised markets. Bailey stated he needs more evidence that inflation will sustainably remain near the 2% target after it is expected to approach that level in April. He noted the bank is closer to a neutral interest rate level.
NVIDIA (NVDA.US) has delayed the launch of its new gaming graphics chips due to a global memory chip shortage driven by AI demand, marking the first time in three decades the company will not release a new gaming GPU. Production of the current GeForce RTX 50 series has also been significantly cut. An NVIDIA spokesperson acknowledged strong demand but cited supply constraints, without commenting on the delay.
Ethereum treasury firm ETHZilla (ETHZ.US) is pivoting to real estate tokenization after significant declines in its Ethereum holdings and stock price. The company has acquired $4.7 million worth of loans for prefabricated and modular homes, which it plans to tokenize on an Ethereum Layer-2 network. The loans are secured by first liens and are expected to yield about 10% annually. ETHZilla's stock has fallen over 90% from its August 2025 peak, and it sold over $110 million worth of Ethereum last year for buybacks and debt repayment.
Tesla Motors (TSLA.US) CEO Elon Musk denied reports that SpaceX is developing a dedicated "Starlink" phone, calling the media report "full of lies."
Shell (SHEL.US) has suspended oil and gas investments in Kazakhstan due to ongoing lawsuits that could result in billions of dollars in liabilities. The company's CEO stated that the legal uncertainty affects its willingness to invest further, despite seeing significant future opportunities in the country.