Stocks Slide as Trump Nominates Warsh for Fed; Precious Metals Plunge

Jan 31, 2026, 2:23 AM

Hover over text to view sources

US stocks slid on Friday as President Donald Trump announced his nomination of Kevin Warsh to lead the Federal Reserve. This news came against a backdrop of a rising dollar and a sharp decline in precious metals, halting their recent rallies.

The Dow Jones Industrial Average fell by 179 points, or 0.36%, settling at 48,892.47. The broader S&P 500 index dropped 0.43%, while the tech-heavy Nasdaq Composite suffered the most, declining 0.94% to end the day at 23,461.82.

Despite Friday's downturn, all major indexes recorded slight gains for January. The S&P 500 managed a 0.34% increase over the week, while both the Dow and Nasdaq posted losses for three consecutive weeks.

Warsh's selection is seen as a stabilizing influence on the Fed, easing concerns regarding the independence of the central bank. While he has a history of hawkishness regarding interest rates, he has recently indicated support for rate cuts, aligning with Trump's agenda.

The US dollar rallied by 0.85%, reflecting investor confidence in Warsh's potential leadership. However, the announcement prompted a significant plunge in precious metals. Gold prices fell nearly 9%, marking one of the worst days for the metal since 2013, while silver dropped an alarming 28%, its largest decline since 1980. Analysts suggest that the recent surge in these commodities was driven more by speculation than fundamentals, indicating that a correction was due.

In addition to the market's reaction to Warsh's nomination, investors are also watching for Trump's next trade moves. The President has threatened to impose a 50% tariff on Canadian aircraft imports and decertify jets from companies like Bombardier, suggesting a more aggressive trade stance. Mexico may also face new tariffs related to oil supplies to Cuba under Trump’s administration.

On the earnings front, technology stocks remained volatile. Apple shares fluctuated despite the company beating quarterly profit estimates, primarily driven by record iPhone sales. However, CEO Tim Cook cautioned about potential margin impacts due to global memory shortages. In contrast, shares of telecommunications giant Verizon surged nearly 12%, buoyed by strong earnings and a positive outlook.

Despite the turbulence seen on Friday, January concluded positively for most major averages. The S&P 500 and Dow experienced gains of 1.4% and 1.7%, respectively, while the Nasdaq posted a 1% increase.

As markets adjust to the implications of Warsh's nomination and the broader economic landscape, volatility is expected to continue. Investors will be keenly observing how Warsh's policies, should he be confirmed, will influence monetary policy and market dynamics moving forward.

Economic Experts Weigh In on Trump's Nomination of Kevin Warsh for Fed Chair

Kevin Warsh's nomination by President Trump to lead the Federal Reserve has sparked mixed reactions among economic experts. While some praise his experience and potential for market reassurance, others express concern over his past policy shifts and political ties.

Dunleavy's Fiscal Plan Faces Tepid Reception from Lawmakers

Alaska Governor Mike Dunleavy's recent fiscal proposal has been met with a lukewarm response from state lawmakers and industry leaders. Dunleavy described the plan as a necessary 'sacrifice' of political goodwill, highlighting the challenges in garnering support amidst differing priorities.

Economic Experts Weigh In on Trump's Fed Chair Nominee Kevin Warsh

Kevin Warsh's nomination as Federal Reserve Chair by President Trump has sparked diverse opinions among economic experts. While some view him as a cautious choice with a deep understanding of financial markets, others express concerns about his political alignment and past hawkish stance on interest rates.

Trump to Announce Next Fed Chair Nominee Next Week

President Trump confirmed he will announce his nominee for the next chair of the Federal Reserve next week. The decision comes amid ongoing debates over interest rates and potential candidates, including former Fed Governor Kevin Warsh.

Bitcoin Stays Flat as Fed Holds Rates Steady and Powell Avoids Politics

Bitcoin's price remained unchanged following the Federal Reserve's decision to keep interest rates steady. Fed Chair Jerome Powell refrained from discussing political matters during his press conference, focusing instead on inflation and economic assessments.