Wall Street Catches Its Breath as Trump Taps Kevin Warsh for Fed Chair — Tech Earnings and Metals Hit by Market Whiplash

U.S. stock futures wobbled Friday, recovering slightly after a jittery start, as investors digested the news that President Donald Trump nominated former Fed governor Kevin Warsh to succeed Jerome Powell at the Federal Reserve.

Futures tied to the S&P 500 fell 0.4%, Nasdaq 100 contracts dipped about 0.5%, and Dow Jones futures dropped roughly 170 points (0.4%). Early in the session, contracts were down nearly 0.8% each, reflecting lingering caution from two consecutive losing sessions.

Trump’s Truth Social announcement hailed Warsh as “one of the GREAT Fed Chairmen, maybe the best,” a statement that helped ease investor concerns about potential interference in U.S. monetary policy. Analysts noted that Warsh’s experience as a Fed governor and occasional hawkish stance on inflation gives him credibility, even as Trump pushes for short-term interest rate cuts.

The nomination immediately rippled through commodity markets. Gold futures plunged more than 4%, while silver tumbled 12%. Despite the sharp pullback, both metals remain up over the past year — gold by 80% and silver by 209%, fueled by earlier safe-haven demand and a weakening dollar.

The dollar index (DX-Y.NYB) strengthened on the Warsh nomination, making metals more expensive for international buyers. Meanwhile, 30-year Treasury yields gained five basis points, signaling Wall Street’s cautious approval of a credible Fed leader.

The tech sector saw a mix of winners and laggards amid the broader market shakeup. Apple shares inched lower in premarket trading despite beating fiscal Q1 earnings and revenue expectations, boosted by record iPhone sales. CEO Tim Cook warned, however, that the global memory shortage may pressure margins in coming quarters.

Data storage company Sandisk surged 19–20% after issuing strong forward guidance, reflecting optimism for firms that can monetize AI and infrastructure investments. In contrast, KLA Corp fell more than 8% after reporting lighter-than-expected non-GAAP gross margins.

“This week brought the first wave of major tech earnings, with investors focusing on results, guidance, and AI spending,” said Angelo Kourkafas, senior global investment strategist at Edward Jones. “Companies ramping up AI infrastructure and turning it into earnings are being rewarded, while those without a clear monetization strategy face more scrutiny.”

Kourkafas added that tech profit growth remains robust but slower than other sectors, signaling a broadening of market leadership in 2026.

Markets are also weighing President Trump’s tariff threats against Canada and Mexico. Trump announced a potential 50% tariff on Canadian aircraft imports, citing certification hurdles for U.S. Gulfstream jets, and hinted at new levies on countries supplying oil to Cuba.

Investors appear focused on the macro-policy mix: Fed leadership, trade friction, and geopolitical tension, all of which could shape risk appetite for equities, commodities, and the dollar.

Friday’s earnings calendar highlights energy and finance giants: ExxonMobil (XOM) and Chevron (CVX) reports are due before the open, followed by American Express (AXP) and Verizon (VZ). Analysts expect volatility to persist, with Wall Street scanning both guidance and macro commentary for signs of momentum.

Despite recent gyrations, major indexes remain mostly higher for the week, with the S&P 500 and Nasdaq Composite pacing for January gains, while the Dow lags slightly.

Bottom Line: Markets are caught in a delicate balancing act. Trump’s Fed pick temporarily calmed concerns about policy credibility, but rising tariffs, a strengthening dollar, and uneven tech earnings remind investors that volatility is far from over. Gold and silver may pause, but equity markets and tech stocks remain the key barometer of investor sentiment as January draws to a close.