Wall Street closed lower on Friday, pulled down by tech and industrial stocks. Investors reacted sharply to President Trump’s nomination of Kevin Warsh as the next Fed chair and what that could signal for future U.S. interest-rate policy. Rising Treasury yields also weighed on sentiment, while precious metals plunged. All three benchmark indexes finished firmly in the red.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.4%, or 179.09 points, to close at 48,892.47. Eighteen components of the 30-stock index ended in negative territory, while 12 ended in the positive.
The tech-heavy Nasdaq Composite slid 223.3 points, or 0.9%, to close at 23,461.82.
The S&P 500 lost 0.4%, or 29.98 points, to close at 6,939.03. Seven of the 11 broad sectors of the benchmark index closed in the red. The Materials Select Sector SPDR (XLB), the Technology Select Sector SPDR (XLK) and the Industrials Select Sector SPDR (XLI) declined 1.9%, 1.3% and 0.3%, respectively, while the Consumer Staples Select Sector SPDR (XLP) added 1.4%.
The fear gauge CBOE Volatility Index (VIX) increased 3.3% to 17.44. A total of 23.9 billion shares were traded on Friday, higher than the last 20-session average of 19.4 billion. Decliners outnumbered advancers by a 1.59-to-1 ratio on the NYSE and by a 2.02-to-1 ratio on the Nasdaq.
Wall Street Slips on Fed Leadership Uncertainty
The three benchmark Wall Street indexes declined on Friday, as investors reacted to President Trump’s nomination of Kevin Warsh as the next Federal Reserve chair. The announcement heightened uncertainty around the future path of U.S. interest-rate policy, prompting traders to reassess expectations for inflation control and monetary tightening. Treasury yields moved higher, adding pressure on equities and reinforcing a cautious tone across markets.
Rate-sensitive sectors like tech and industrials lagged as investors trimmed risk amid concerns over how the Fed’s policy approach might evolve under new leadership. While some market participants viewed the nomination as a step toward resolving uncertainty around the central bank’s leadership, the immediate response reflected lingering unease over monetary direction.
Precious Metals Slide as Markets Reprice Policy Outlook
Precious metals fell sharply on Wall Street on Jan. 30 as investors reassessed the outlook for U.S. monetary policy following the Kevin Warsh nomination. Gold and silver came under pressure as Treasury yields rose and the U.S. dollar strengthened, reducing the appeal of non-yielding assets. While gold futures fell more than 11%, silver futures plunged more than 31%, marking their worst session since March 1980. The move reflected expectations of a potentially firmer interest-rate stance and heightened policy uncertainty.
Consequently, shares of Newmont Corporation NEM and Coeur Mining, Inc. CDE plunged 11.5% and 16.9%, respectively. While NEM carries a Zacks Rank #3 (Hold), CDE sports a #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Monthly Roundup
For January, all three major Wall Street indexes posted modest gains. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq added 1.7%, 1.4% and 1%, respectively. Markets were buoyed by strong tech earnings and record highs early in January, but later volatility from geopolitics, interest-rate uncertainty and precious metals sell-offs tempered gains.
Weekly Roundup
For the week, the S&P 500 rose about 0.3%, while the Dow Jones Industrial Average and the Nasdaq Composite dipped 0.4% and 0.2%, respectively. Investors were cautious as markets digested mixed earnings, rising Treasury yields and uncertainty over Fed policy following the Kevin Warsh nomination, which weighed on sentiment late in the week.
Economic Data
The U.S. Bureau of Labor Statistics reported that the Producer Price Index (“PPI”) had increased 0.5% in December, after advancing 0.2% in November. Core PPI had gone up 0.4% in December, after rising 0.2% in November.
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Newmont Corporation (NEM): Free Stock Analysis Report Coeur Mining, Inc. (CDE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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