Traders work on the floor of the New York Stock Exchange (NYSE) in New York, US, on Wednesday, Jan. 28, 2026.
Michael Nagle | Bloomberg | Getty Images
Stocks headed lower on Friday as technology shares continued to be in a funk, even as investors largely approved of President Donald Trump’s pick of Kevin Warsh to lead the Federal Reserve. The S&P 500 looked to squeak out a January gain, despite Friday’s losses.
The S&P 500 fell 0.7%, while the Nasdaq Composite shed 0.9%. The Dow Jones Industrial Average pulled back 520 points, or 1.1%.
“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” said Trump in a Truth Social post.
Warsh’s selection was likely to ease concern about Fed independence because of his experience as a Fed governor and strong stance at times against inflation. While he is likely to push for lower rates in short term as Trump wants, the financial markets view him as someone who wouldn’t always follow the president’s direction and maintain credibility for monetary policy.
The U.S. dollar rose and U.S. Treasury yields held steady, signaling that investors appeared satisfied with Trump’s pick.
“Kevin Warsh’s nomination for Fed Chair is exactly what markets were hoping for, as he’s a steady hand, well known in market circles and is expected to maintain the independence of the central bank, which is critical for markets,” said Richard Saperstein, chief investment officer of Treasury Partners. “Most importantly, Warsh faces few hurdles when it comes to being confirmed by the Senate.”
But there were other variables throwing cold water on stock investors in the session.
Gold futures dropped more than 4%, while contracts tied to silver plunged 12%. Retail investors have pilled into the precious metals, sending them soaring over the past year by 80% and 209%, respectively.
Apple shares ticked down despite beating fiscal first-quarter earnings and revenue expectations and reporting a significant surge in iPhone sales. That slide follows Microsoft‘s 10% postearnings drop on Thursday, marking its worst day since 2020 and wiping out more than $350 billion in market cap.
Data storage stock Sandisk popped 12% in Friday trading on the back of strong guidance. But KLA Corp lost 13% after guidance for non-GAAP gross margin in the fiscal third quarter came in light.
“This week brought the first wave of major tech earnings, with investors focused on results, guidance, and AI spending as a key market driver. … A clear theme is emerging, in our view,” said Angelo Kourkafas, senior global investment strategist at Edward Jones.
“Companies are ramping up AI related infrastructure spending, and markets are rewarding those that can turn these investments into earnings,” he added. “Firms without a clear monetization strategy are facing more scrutiny.”
Despite Friday’s weakness, the major averages were headed for a positive month. The S&P 500, Dow Jones Industrial Average and Nasdaq were all up around 1% for January. The small cap-focused Russell 2000 has jumped about 5% in the month.