Stocks Fall as Wall Street Reacts to Warsh's Fed Nomination

Feb 1, 2026, 2:25 AM

Hover over text to view sources

US stocks slid on Friday following President Trump's announcement that he would nominate Kevin Warsh to lead the Federal Reserve. This news came against a backdrop of a rising dollar and a significant downturn in precious metal prices, which has raised concerns among investors.

The S&P 500 index fell by 0.4%, while the Nasdaq Composite dropped 0.9%, marking another challenging day for technology stocks. The Dow Jones Industrial Average also decreased by 0.4%. Despite this volatility, all three major indexes managed to record slight gains for January, with the S&P 500 rising 0.3% over the previous five days, while both the Dow and Nasdaq faced their third consecutive weekly losses.

Markets are closely analyzing the implications of Warsh's nomination. As a former Fed governor known for his hawkish stance on interest rates, he has recently expressed support for rate cuts, aligning with Trump's push for lower rates. This mixed message has created uncertainty regarding the future direction of monetary policy.

The US dollar saw an uptick in value due to Warsh's nomination, while gold and silver prices fell dramatically, each recording significant losses. Gold dropped below the $5,000 mark, and silver experienced its largest daily decline on record, plunging as much as 25%. Analysts suggest that this decline may be reflective of forced selling, as retail investors have heavily traded precious metals in recent weeks, leading to a speculative bubble that has now burst.

In conjunction with these market movements, Trump has threatened to impose a 50% tariff on Canadian aircraft imports, further complicating trade relations. He accused Canada of utilizing certification hurdles to ban the sale of US Gulfstream jets, while also hinting at new tariffs on countries supplying oil to Cuba.

Amid the market fluctuations, earnings reports from major corporations provided a mixed bag of results. Apple shares rose after the company exceeded quarterly profit expectations, driven by record iPhone sales. However, CEO Tim Cook cautioned that a global memory shortage could impact future profit margins. Conversely, shares of Microsoft fell sharply after disappointing earnings, erasing more than $350 billion in market value, while KLA Corporation's stock dropped over 15% due to a slowdown in growth projections.

Despite Friday's downturn, the broader market recorded positive performances in January, with the S&P 500 and Dow gaining 1.4% and 1.7%, respectively, while the Nasdaq posted a 1% increase over the month. The small-cap focused Russell 2000 index saw even more substantial growth, rising over 5% during the same period.

As Wall Street navigates the implications of the Fed nomination and ongoing trade tensions, investors remain vigilant, balancing concerns over monetary policy with corporate earnings trends and external economic pressures.

Wall Street Reacts to Trump's Fed Pick, Kevin Warsh: Senate Hurdles Ahead

President Trump has nominated Kevin Warsh as the next chair of the Federal Reserve, sparking varied reactions on Wall Street. While markets are cautiously optimistic, Warsh faces significant hurdles in the Senate, particularly from Republican opposition.

Wall Street Reacts to Trump's Fed Chair Nomination of Kevin Warsh

President Trump's nomination of Kevin Warsh as the next Federal Reserve chair has elicited mixed reactions from Wall Street. While stocks dipped amid uncertainty regarding interest rates, analysts view Warsh as potentially stabilizing for the Fed's independence.

Stock Market Dips as Trump Nominates Warsh for Fed Chair; Precious Metals Plunge

US stock indices fell following President Trump's nomination of Kevin Warsh to lead the Federal Reserve, with the Dow, S&P 500, and Nasdaq all in decline. Simultaneously, gold and silver prices experienced significant drops, marking a volatile end to the trading week.

Trump Nominates Kevin Warsh as Next Federal Reserve Chair

President Donald Trump has nominated Kevin Warsh to become the next Chairman of the Federal Reserve, succeeding Jerome Powell. Warsh, a former Fed governor, is expected to bring significant changes to the central bank, amid ongoing debates about interest rates and economic policy.

Understanding Warsh's Potential Impact on Fed Interest Rates

The nomination of Kevin Warsh as Fed chair raises questions about future interest rate policies. Analysts speculate that while Warsh may advocate for rate cuts, he faces challenges in convincing a divided Federal Reserve committee amid ongoing economic concerns.