Market Recap: Dow Jumps 1.05% on Manufacturing Data; Chicago’s Metropolitan Capital Bank Becomes 2026’s First U.S. Bank Failure

The U.S. market closed mixed on February 2, 2026, with major indexes rising on strong manufacturing data and Trump-era policy shifts, while energy prices and precious metals slumped. The Dow Jones Industrial Average surged 1.05% to 49,407.66, the S&P 500 gained 0.54% to 6,976.44, and the Nasdaq Composite rose 0.56% to 23,592.11. Commodities faced headwinds: WTI crude oil fell 4.4%, gold dropped 1.35%, and copper declined 1.55%, while silver bucked the trend with a 0.94% gain. Sectors were split, with industrials (+1.12%) and consumer staples (+1.57%) leading gains, while utilities (-1.23%) and energy (-1.64%) lagged. The day’s trading reflected optimism over Trump’s $12 billion rare-earth mineral stockpile and strong ISM manufacturing data, but also jitters over a potential Fed leadership shift and a regional banking crisis.

Hot Stocks

Tech Giants:

• Apple (AAPL): +4.06%
• Alphabet C (GOOG): +1.88%
• Amazon.com (AMZN): +1.53%
• Micron Technology (MU): +5.52%
• Nvidia (NVDA): -2.89%
• Tesla (TSLA): -2.00%

Logistics & Industrial Plays:

• XPO Logistics (XPO): +10.09%
• Old Dominion Freight (ODFL): +7.47%
• Caterpillar (CAT): +5.10%

Semiconductors & Storage:

• Sandisk (SNDK): +15.44%
• Western Digital (WDC): +7.99%
• Lumentum Holdings (LITE): +8.06%

Consumer & Retail:

• Las Vegas Sands (LVS): +5.52%
• GameStop (GME): +6.20%

Analysts Opinions

Analyst commentary remained sparse, with BlackRock’s weekly report offering no insights and stock ratings data inaccessible. However, market participants focused on Trump’s aggressive industrial policies, including the rare-earth stockpile and trade deals, as tailwinds for manufacturing. Earnings surprises from companies like DaVita and Palantir underscored resilience in healthcare and tech, while energy sector struggles highlighted ongoing concerns over oversupply and geopolitical risks. The Fed’s potential shift under Kevin Warsh, a hawkish nominee, added uncertainty to rate-cut expectations, weighing on gold and silver.

Macro & Corporate News

1. Chicago’s Metropolitan Capital Bank Failure

Metropolitan Capital Bank became the first U.S. bank to fail in 2026 after regulators cited "unsafe and unsound conditions." The FDIC facilitated a purchase by First Independence Bank, ensuring no depositor losses. The failure, following 2025’s Pulaski Savings Bank closure, raised concerns about regional banking stability.

2. Trump’s Trade Deal with India

President Trump announced reduced tariffs on Indian goods (from 50% to 18%) in exchange for India ceasing Russian oil imports. The deal aims to bolster U.S. energy exports and align with sanctions on Russia, though implementation challenges remain due to infrastructure gaps.

3. SpaceX Merges with xAI in $1.25T Megadeal

Elon Musk finalized a merger between SpaceX and his AI startup xAI, creating a vertically integrated entity valued at $1.25 trillion. The deal, set to debut via an IPO, combines SpaceX’s Starlink and rocket tech with xAI’s Grok AI tools, while regulatory scrutiny looms over potential AI misuse.

4. DaVita and Palantir Report Earnings Beats

DaVita (DVA) and Palantir (PLTR) exceeded expectations, with revenue growth of 9.9% and 70% YoY, respectively. DaVita raised 2026 guidance, while Palantir’s 40.9% operating margin signaled strong AI-driven demand.

5. Fed Leadership Uncertainty

Trump’s nomination of Kevin Warsh as Fed Chair faces delays due to a DOJ probe into outgoing Chair Powell. Warsh’s hawkish stance, coupled with a partial government shutdown delaying the January jobs report, heightened market volatility.

6. Government Shutdown Delays Jobs Data

The partial shutdown halted data collection for the January nonfarm payrolls report, replicating 2023’s disruptions. The delay complicates economic analysis amid conflicting signals between GDP growth and weak hiring trends.