4:20pm: Metals rally collapses
Stocks slipped on Friday as investors digested President Trump’s announcement that he will nominate Kevin Warsh to lead the Federal Reserve, sending the dollar higher and putting a sudden stop to 2026’s hot metals rally.
The Nasdaq closed at 23,462, down 0.9% or 223 points, while the Dow Jones fell 179 points, or 0.4%, to 48,892. The S&P 500 dropped 30 points, also 0.4%, finishing at 6,939. The Russell 2000 led the decline, sliding 1.6% to 2,614.
Both the Dow and Nasdaq posted their third straight weekly loss, though the S&P 500 managed to snap its losing streak, rising 0.3% over the past five days.
The US dollar jumped on expectations that Warsh could take a more hawkish stance at the Fed. That, in turn, weighed heavily on precious metals, bringing an abrupt end to their early-year surge. Gold fell below the $5,000 mark, while silver tumbled as much as 25%—its biggest one-day drop on record.
Investors now head into next week watching both the Fed nomination and the metals markets closely, as Wall Street tries to gauge what Warsh’s leadership could mean for the economic outlook and market momentum.
3:40pm: Proactive news headlines
- OKYO Pharma Ltd (NASDAQ:OKYO) announced that an abstract on its lead candidate urcosimod for neuropathic corneal pain will be presented at the 2026 ASCRS Annual Meeting.
- NEXE Innovations Inc (TSX-V:NEXE, OTC:NEXNF, FRA:FRA: NX5) reported Q2 fiscal 2026 revenue of $199,000, up from $71,000 a year earlier, driven by its compostable coffee pod and new big-box retail customer.
- Protalix Biotherapeutics Inc (NYSE-A:PLX, FRA:PBDA) received a positive EMA opinion recommending approval of an expanded four-week dosing regimen for its Fabry disease treatment, Elfabrio.
- Delivra Health Brands Inc. (TSX-V:DHB, OTCQB:DHBUF, FRA:3F0) appointed John Barrett, a former senior executive at Frito-Lay and PepsiCo, to its board as it pursues its next growth phase.
2:50pm: Market movers
- SoFi Technologies Inc. (SOFI) reported record quarterly revenue of $1.03 billion and membership growth, driven by strong demand across its lending and financial services businesses.
- American Express Company (NYSE:AXP, XETRA:AEC1) slightly missed fourth-quarter earnings expectations, reporting $3.53 per share amid higher expenses.
- NEXE Innovations Inc (TSX-V:NEXE, OTC:NEXNF, FRA:FRA: NX5) saw higher revenue of $199,000 in Q2 fiscal 2026, boosted by its compostable coffee pod and expansion into big-box retail channels.
- Protalix Biotherapeutics Inc (NYSE-A:PLX, FRA:PBDA) received a positive EMA opinion recommending approval of an expanded dosing regimen for its Fabry disease treatment, Elfabrio.
- Sandisk (SNDK) shares surged 24% after beating quarterly expectations and raising guidance, fueled by strong demand for NAND products supporting AI and data centers.
- Verizon Communications Inc (NYSE:VZ, XETRA:BAC) topped Q4 earnings estimates with $1.09 per share and $36.4 billion in revenue, supported by subscriber growth and higher revenue.
1:45pm: Warsh signals shift
President Donald Trump’s nomination of former Federal Reserve governor Kevin Warsh as the next Fed chair prompted cautious reactions from markets, with investors welcoming his experience but reassessing expectations for easier monetary policy. Warsh, who served on the Fed during the global financial crisis, is widely viewed as an independent thinker and a critic of the central bank’s reliance on forward guidance and balance-sheet expansion.
“While the markets are probably relieved that a well-known, former Fed official has been nominated as the next Fed chair, they are also likely to pivot to concerns that he won’t be as dovish as they were expecting,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
Strategists said Warsh’s skepticism toward quantitative easing and preference for a smaller Fed balance sheet suggest a more hawkish stance on long-term policy tools, even if near-term rate decisions remain data dependent.
12:00pm: Apple faces challenges ahead
Analysts view Apple’s near-term growth as strong, led by iPhone and Services, but longer-term margin sustainability will hinge on managing component cost pressures.
Bank of America praised Apple’s iPhone cycle, gross margin strength, and upcoming AI initiatives, reiterating a Buy rating with a $325 price target.
Wedbush noted China’s outsized contribution and the Google Gemini partnership for Siri, maintaining an Outperform rating with a $350 target.
UBS and Jefferies flagged potential margin pressures from higher memory costs in the second half of fiscal 2026, with Jefferies noting limited upside due to rich valuation despite raising forecasts.
Apple stock was down around 1.5% to start Friday afternoon trading.
11:20am: Warsh 'safe pick'
President Trump’s announcement of Kevin Warsh as the next Federal Reserve Chair is a “safe pick” who is likely to maintain central bank independence, according to Jeffrey Roach, LPL Financial's chief economist.
Roach highlighted Warsh’s record as a five-year Fed governor under Ben Bernanke and his reputation as a critical thinker who “should have no problem getting confirmed” and “will not likely act as a yes-man.” He noted that Warsh’s recent speech to the IMF, which included a section titled ‘Setting Aside Central Bank Fast Food’, signals a willingness to challenge conventional monetary frameworks such as forward guidance and strict data-dependency.
“Investors should be thankful,” Roach said, adding that Warsh’s approach could be beneficial for FX markets and overall financial stability. Roach also cautioned that some of Warsh’s critiques of current monetary tools could make markets nervous, but emphasized that the speech provides guidance on how the policy framework may evolve under the new chair.
10:40am: Producer prices rise in December
US producer prices surged in December, signaling stronger inflationary pressures than expected. The Labor Department reported that the Producer Price Index (PPI) for final demand rose 0.5% month-over-month, above economists’ forecast of 0.2%. On a yearly basis, PPI climbed 3.0%, versus an anticipated 2.8%.
Core PPI, which strips out volatile food and energy costs, increased 0.7% month-over-month, far exceeding the 0.2% estimate, while annual core PPI rose 3.3%, compared with forecasts of 2.9%.
The data suggests that inflation pressures at the wholesale level remain persistent, potentially influencing the Federal Reserve’s outlook on interest rate policy.
10am: Negative start for Wall Street
Wall Street got off to a modestly negative start in early Friday trading.
The Dow Jones has dropped 177 points or 0.4% to 48,895, while the S&P 500 and small-cap Russell 2000 both fell 0.3%.
Tech stocks on the Nasdaq led the decline, with the composite index down 0.5%.
Microsoft was flat after its worst fall since the pandemic the day before, but Apple fell 1.9% despite its earnings overnight beating forecasts.
Meta, Alphabet and Amazon were also in the red.
Top riser on the S&P was SanDisk after the data storage maker's quarterly results crushed expectations and issued a forecast far above Wall Street estimates.
8:10am: Before the bell
It is shaping up to be a turbulent Friday for US markets as investors juggle a heavy cocktail of political drama and corporate earnings. Stock futures are flashing red across the board, with the Nasdaq leading the retreat, down 0.6%, following a rocky week for Big Tech. While Apple managed a pre-market boost thanks to record iPhone sales, Microsoft’s sluggish cloud growth is still weighing heavily on investor sentiment.
The real headline, however, is the "Warsh Effect." President Donald Trump has confirmed former Governor Kevin Warsh as his choice for the next Fed Chair. Warsh is known for his hawkish history and desire to shrink the Fed’s balance sheet, though he has recently pivoted toward supporting rate cuts. As Saxo UK’s Neil Wilson points out, Warsh "was quite a hawkish governor back in the day... though he has since said the Fed should be cutting rates - otherwise he would not be getting the job."
While his appointment might restore faith in the Fed's independence, his focus on AI-driven cooling of inflation and deregulation is pushing long-term yields higher. This shift has hit commodities hard; gold and silver are retreating as the market realizes a "conventional candidate" who isn't a "Trump stooge" dampens the speculative appeal of precious metals.
Meanwhile, the risk of a US government shutdown has effectively vanished just 48 hours before the deadline. Senate Democratic Leader Chuck Schumer confirmed that a bipartisan agreement has been reached with Republicans to secure federal funding.
"Although US futures are lower today, averting another shutdown should be good for risk sentiment, and it is a massive relief for consumer and business confidence as we move through Q1," commented Kathleen Brooks, research director at XTB. "With less political chaos on the cards, this could remove one headwind for financial markets, which have generally had a good start to the year."
Looking past the tech slump, the focus shifts to energy giants Exxon and Chevron for a pulse check on the oil industry.
--updated to reflect confirmation of President Trump's nomination of Kevin Warsh as Fed Chair--