Global markets witnessed a sharp and synchronised sell-off on Thursday, January 29, as risk sentiment deteriorated rapidly amid escalating geopolitical tensions involving Iran and heavy profit booking after recent rallies across asset classes.
The sell-off hit equities, precious metals and cryptocurrencies simultaneously, highlighting a broad risk-off move on large volumes.
US equities turned sharply lower after a positive start. The Nasdaq 100 plunged over 2.0%, dragged down by steep losses in technology stocks. The S&P 500 fell around 1.2%, while the Dow Jones slipped about 0.6%. Microsoft led the decline, plunging over 11%, weighing heavily on both the Nasdaq and the broader market.
Gold prices extended losses, falling over 5% on the day to around $5,109 per ounce, and are now down more than 10% from recent record highs. The decline came as traders locked in profits after a sharp rally and as selling pressure intensified amid global uncertainty.
Silver witnessed the steepest fall, crashing nearly 15% from recent highs. On the MCX, silver dropped from around Rs 4.20 lakh per kg to near Rs 3.55 lakh per kg, as elevated India premiums unwound, global prices cooled, and margin pressure triggered aggressive selling.
Cryptocurrencies also came under pressure, mirroring the broader risk-off move. Bitcoin fell over 5.2%, trading near $84,485, while Ethereum dropped nearly 6.9% to around $2,799 by mid-morning trade, as investors reduced exposure to volatile assets.
Why markets crashed today
The primary trigger was rising geopolitical tensions linked to Iran. Tehran warned it would respond “like never before” to any potential attack, while the European Union confirmed its decision to label Iran’s Islamic Revolutionary Guard Corps (IRGC) a terrorist organisation. Adding to concerns, the IRGC announced naval drills in the Strait of Hormuz, a key global trade route.
At the same time, markets saw aggressive profit booking on huge volumes after recent parabolic rallies in metals, cryptocurrencies and select equities. Once prices started slipping, stop-loss triggers, margin calls and forced liquidation amplified the downside across asset classes.
The sharp correction reflects a rapid shift from risk-seeking behaviour to capital preservation, with investors cutting exposure across equities, commodities and digital assets simultaneously.
