U.S. stocks pulled back on Friday as weakness in technology shares weighed on the market, even as investors reacted positively to President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chair. Despite the day’s losses and a volatile month, the S&P 500 still managed to close January with a gain.
The benchmark index slipped 0.43% to 6,939.03, marking its third consecutive decline. The Dow Jones Industrial Average fell 179 points, or 0.36%, to 48,892.47, while the Nasdaq Composite lagged, dropping 0.94% to 23,461.82. All three indexes were down more than 1% at their intraday lows.
Trump praised Warsh’s appointment in a Truth Social post, calling him a potential “great” Fed chair. Markets viewed the nomination as supportive of Federal Reserve independence, given Warsh’s prior experience as a Fed governor and his track record on inflation. While he is expected to favor lower rates in the near term, investors believe Warsh would maintain policy credibility rather than simply follow political pressure.
The U.S. dollar strengthened and Treasury yields were steady, signaling market confidence in the nomination. Analysts said Warsh’s familiarity with markets and his expected ease of Senate confirmation helped calm investor concerns.
Still, other factors pressured equities. Precious metals sold off sharply, with spot gold down roughly 9% and silver plunging about 28%. The selloff followed a surge in speculative retail trading that had driven gold and silver futures up approximately 67% and 142% over the past year. The iShares Silver Trust (SLV), a popular retail vehicle, tumbled more than 28% in its worst session on record, a move analysts said suggested forced selling.
Earnings results also influenced trading. Apple fluctuated between gains and losses after beating fiscal first-quarter estimates and reporting strong iPhone sales. Microsoft’s 10% post-earnings plunge a day earlier — its worst since 2020 — continued to weigh on sentiment, while KLA Corp slid more than 15% after issuing a weaker growth outlook.
Outside of technology, Verizon stood out, surging nearly 12% for its best day since 2008 after topping earnings expectations and issuing a strong full-year forecast.
Despite Friday’s decline, major indexes ended January higher. The S&P 500 rose 1.4% for the month, the Dow gained 1.7%, the Nasdaq advanced 1%, and the Russell 2000 jumped more than 5%.
Frequently Asked Questions
Why did U.S. stocks fall despite a positive reaction to Kevin Warsh’s Fed nomination?
Markets were pressured by continued weakness in tech stocks and a sharp unwind in speculative silver trades, which outweighed optimism around the Fed leadership pick.
What caused the sharp drop in silver and gold prices?
Precious metals sold off as speculative retail positioning unwound rapidly, triggering forced selling—especially in silver-linked ETFs like SLV.
Why did technology stocks underperform the broader market?
Heavy losses in major names such as Microsoft and KLA Corp, along with mixed reactions to Apple’s earnings, dragged down the tech-heavy Nasdaq.
How did markets react to Kevin Warsh being nominated as Fed chair?
Investors largely welcomed the pick, viewing Warsh as a credible and independent policymaker, which helped support the U.S. dollar and stabilize Treasury yields.
Did the stock market still end January on a positive note?
Yes. Despite late-month volatility, the S&P 500, Dow Jones, Nasdaq, and Russell 2000 all posted gains for January.
