What’s Up w/Stocks, Cryptos, Gold & Silver? Brian Mudd’s Weekly Market Update February 2nd, 2026
Congress, The Fed and Earnings are in focus entering this week...
Bottom Line: My first rule of money... Never let your money and emotions cross paths. This story is a weekly wake-up call to show you the near-worst-case scenario for stocks and crypto. Why? So, you can plan your financial future with a cool head, not a racing pulse. The odds of a near-worst case outcome almost certainly won’t happen, however if your plan accounts for it – it can help you manage even the most trying markets like what we’ve experienced this year.
The US stock market is history’s ultimate wealth-building beast. Crypto? It’s minted millionaires from early believers. Fact: Over 90% of the time, investors who try to “time” the market end up poorer than if they just stuck to their original investments. This is about dodging that trap.
Here’s how the big three indexes have fared in 2026:
- DOW: +1% (slightly lower last week)
- S&P 500: +1% (slightly lower last week)
- Nasdaq: +1% (slightly lower last week)
January proved to be a weird month in the financial markets for a lot of reasons, but in the end, despite three straight losing weeks for stocks to close out the month, all three major indexes closed out the month with gains. Here’s a not-so-insignificant factoid. When stocks are higher in January, 86% of the time they’re higher for the year. So, it’s a good start and historical indicator for how the year could go.
The same was not true of crypto currencies as they’ve had a brutal start to the year with major losses through the first month added on to last year’s negative performance. One of the major underpinning narratives for cryptos has significantly eroded over the past year plus but especially recently. The notion that Bitcoin is “digital gold” and Ether is “digital silver”, or in other words they’ve effectively replaced them as a safe haven to turn to during times of uncertainty.
- Bitcoin: -12% 2026 (-7% last week)
- Ether: -20% in 2026 (-13% last week)
- BitwiseETF (Top 10 cryptos): -9% in 2026 (-7% last week)
Instead, despite a massive selloff on Friday – equaling the largest one-day selloff of silver since 1980, gold and silver have continued to be what they’ve historically been as a store of value. Both were massive winners to start the year:
- Gold: +17% 2026 (flat last week)
- Silver: +40% in 2026 (-9% last week)
Focus this week centers around Congress to start it as a partial government shutdown was triggered over the weekend as the Senate broke out DHS funding from five other spending packages that the House had previously passed along with it. The House is expected to return today and could vote as early as today.
Kevin Warsh, a former Fed governor and President Trump’s pick to replace Federal Reserve Chairman Jerome Powell, eased market concerns a bit on Friday. Otherwise, earnings continue to come stronger than expected. As of Friday, for the 33% of companies that have reported, they’ve paced 9.1% growth year-over-year.
Now for valuation calculations – starting with cryptos...Here’s a look at where they stand. I can’t value cryptos because they have no inherent value. Stocks, though? They’ve got bones. Let’s break down the S&P 500:
- Current P/E: 31.36
- Historic Avg. P/E: 16.20
Translation: On earnings alone, the maximum downside risk is a 48% drop from here—similar to a week ago as stock prices and fundamentals were close to unchanged. The market is historically expensive as it’s priced near the highest multiple of the current bull market cycle.
So, What’s Your Move?
If a 48% dip wouldn’t derail your life, you’re probably golden. If it would? Time to call a pro and build a plan that doesn’t leave you sweating bullets—or making mistakes.