US stocks slid sharply on Friday after President Trump announced his nomination of Kevin Warsh to lead the Federal Reserve.The Dow Jones Industrial Average fell by 179 points, or 0.36%, finishing the day at 48,892.47, while the S&P 500 dropped 0.43%, closing at 6,939.03.The tech-heavy Nasdaq Composite experienced the most significant decline, down 0.94% to end at 23,461.82, marking a continued downturn for technology stocks.
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uk.finance.yahoo.comcnn.comDespite the volatility on Friday, all major indices recorded slight gains in January, with the Dow and Nasdaq facing their third consecutive losing weeks.The S&P 500, however, managed to break its losing streak, rising 0.3% over the past five days.
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finance.yahoo.comcnbc.comMarket analysts are assessing the implications of Warsh's nomination.Known for a hawkish stance on interest rates, he has expressed recent support for cuts, aligning with Trump's push for lower rates.Warsh's selection seems to have lifted concerns regarding the Fed's independence, which in turn bolstered the US dollar, leading to a significant drop in gold and silver prices.Gold fell by approximately 9%, settling near $4,850 per troy ounce, while silver plummeted around 28%, marking its largest one-day decline on record.
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finance.yahoo.comcnn.comInvestor sentiment shifted as the dollar rallied by 0.85%, reflecting confidence in Warsh's potential leadership.Richard Saperstein, chief investment officer at Treasury Partners, stated that Warsh's nomination was well-received by markets, signaling hopes for a stable and independent Fed under his guidance.He noted that Warsh faces minimal hurdles for Senate confirmation, which could further stabilize investor confidence.
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cnbc.comcnn.comThe sharp decline in precious metals prices appeared to be driven by profit-taking after a substantial price surge over the past year, with gold and silver futures having increased by 67% and 142%, respectively.Analysts suggested that the drop in prices was indicative of a speculative bubble that had formed in recent weeks, particularly in silver trading where forced selling was observed as traders locked in gains.
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uk.finance.yahoo.comcnbc.comOn the earnings front, tech giant Apple reported mixed results, swinging between gains and losses despite exceeding quarterly profit expectations driven by record iPhone sales.CEO Tim Cook warned, however, that a global memory shortage could impact future margins.Meanwhile, shares of Sandisk rose 5% after it provided a positive outlook, contrasting with the broader tech sector's struggles following disappointing earnings from other major companies like Microsoft, which recorded its worst day since 2020, losing over $350 billion in market capitalization.
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finance.yahoo.comuk.finance.yahoo.comIn addition, the market is bracing for potential trade tensions, as Trump hinted at imposing a 50% tariff on Canadian aircraft imports and new levies on oil shipments to Cuba.Such trade negotiations could add further volatility to an already turbulent market landscape.
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finance.yahoo.comuk.finance.yahoo.comDespite Friday's downturn, the major averages posted monthly gains for January, with the Dow and S&P 500 increasing by 1.4% and 1.7%, respectively.However, the Nasdaq ended January slightly lower by 0.1%, reflecting a mixed performance across the indices as investors navigate through earnings reports and geopolitical uncertainties.
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cnbc.comcnn.comAs the week concludes, the focus will remain on the Senate confirmation process for Warsh and the potential implications for monetary policy, as traders and investors adjust their strategies in response to these developments in the financial landscape.
