Stocks mostly rise as traders ignore AI-fuelled sell-off on Wall Street

Stocks mostly rose Wednesday (February 4, 2026) as investors brushed off another tech-fuelled sell-off on Wall Street, while precious metals continued their recovery on dip-buying following a two-day collapse.

Oil prices also extended gains on a fresh pick-up in U.S.-Iran tensions after an American jet shot down an Iranian drone in West Asia, just as the two sides prepared to hold key nuclear talks.

Assets across the board have endured a volatile start to February owing to a surge in the dollar, geopolitical tensions and the possibility of another U.S. government shutdown.

Concerns over artificial intelligence have also kept traders on their toes amid questions over the vast sums invested in the sector and warnings of a bubble that could pop at any time.

The latest flare-up came in New York, where markets were spooked by news that AI startup Anthropic — which created the Claude chatbot — had revealed a tool that could be used by firms to carry out legal work.

The announcement hit firms in the software, financial services and asset management industries. Downbeat sales projections from Advanced Micro Devices compounded the darker mood.

Shares in Hong Kong, Shanghai, Sydney, Seoul, Singapore, Mumbai, Wellington, Taipei, and Bangkok rose but Tokyo and Manila slipped.

London, Frankfurt, and Paris advanced at the open.

The mixed day pointed to a return of stability after two days of sharp swings sparked by AI concerns and Donald Trump’s hawkish pick to lead the Federal Reserve, which dampened interest rate cut bets.

Precious metals rose for a second day, after tanking on Friday and Monday as the U.S. President’s tapping of Kevin Warsh — a former Fed Governor — sent the dollar surging.

The greenback had been taking a battering for most of last week on worries Mr. Trump was happy to have a weaker currency.

Gold was sitting just above $5,070 an ounce and silver around $89 — both well off last week’s record highs of $5,595 and $121 but up from the lows of $4,597 and $71 seen in the past two days.

“Investors and traders are dipping their toes in the waters after the clear-out of a lot of the froth and leveraged speculative positions,” said Saxo Markets’ Neil Wilson.

This “A) might give them confidence that perhaps the worst of the volatility is over; and B) prices had plunged so much so fast they think it’s worth a go at these levels.

“A lot of people sitting on the sidelines for months feeling every day they’d missed their chance to get in will be part of this renewed wave of buying.”

Oil prices rose after it emerged a U.S. fighter jet had taken out an Iranian drone that approached an aircraft carrier on Tuesday.

That was the second clash that day between the two in West Asian waters, after Iranian forces attempted to detain a U.S.-flagged tanker in the Strait of Hormuz.

The incidents come after Washington and Tehran agreed to talks despite Mr. Trump’s repeated threat of military action against Iran — and Iran’s warning that it would respond with strikes on U.S. vessels and bases.

White House spokeswoman Karoline Leavitt told Fox News that U.S. envoy Steve Witkoff is still expected “to have conversations with the Iranians late this week”.

Traders were cheered by news that Mr. Trump had signed into law a congressional spending bill to fund government agencies while buying more time for lawmakers to negotiate over the administration’s controversial immigration crackdown.

Negotiations had broken down following the killing of two U.S. citizens by federal agents in Minneapolis, the Minnesota city which has become the flashpoint for the Republican President’s policies.

However, lawmakers now have just two weeks to negotiate a full-year Department for Homeland Security bill.

In corporate news gaming giant Nintendo tanked 11% — its biggest loss in 18 months — after releasing disappointing quarterly earnings and amid concerns about its profitability due to a shortage of memory chips.