S&P 500 Dow Nasdaq January performance: US stocks finished lower on Friday as pressure on technology shares continued, even as investors reacted positively to US president Donald Trump’s decision to nominate Kevin Warsh as the next Federal Reserve chair, as per a report.
S&P 500, Dow Jones, Nasdaq Slide as US Tech Stocks Remain Under Pressure
The S&P 500 slipped 0.43% to 6,939.03, extending its losing streak to three sessions, the Dow Jones Industrial Average fell 179 points, or 0.36%, to 48,892.47 and the Nasdaq Composite led the declines, dropping 0.94% to close at 23,461.82, as per a CNBC report.
Trump Praises Kevin Warsh
Trump publicly praised Warsh in a Truth Social post, saying “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,” as quoted by CNBC.
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Dollar Rises and Treasury Yields Hold Steady After Fed Chair Nomination
Markets appeared reassured by the nomination, largely because of Warsh’s background as a former Fed governor and his reputation for taking a firm stance on inflation.
Investors also viewed Warsh as someone likely to preserve the independence of the central bank, even if he supports lower interest rates in the short term, aligning with Trump’s preferences. That perception helped steady confidence, with the US dollar rising and Treasury yields holding firm during the session, as per the CNBC report.
Richard Saperstein, chief investment officer at Treasury Partners, explained that, “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,” adding, “Most importantly, Warsh faces few hurdles when it comes to being confirmed by the Senate,” as quoted by CNBC.Also read: Jeffrey Epstein files: Emails expose Elon Musk’s planned trips to private island, SpaceX’s meetings, SolarCity talks, & more – here’s what they discussed
Gold and Silver Prices Crash After Year-Long Rally
Gold and silver prices saw steep declines, with spot gold falling about 9% and silver tumbling roughly 28%. The drop followed a strong rally over the past year, during which gold and silver futures had climbed about 67% and 142%, respectively. In recent weeks, retail investors had piled into precious metals trades, particularly silver, contributing to what was widely viewed as a speculative bubble, as per the CNBC report.
Silver Sees Worst Day on Record as Retail Trading Bubble Bursts
The iShares Silver Trust (SLV), a popular fund among individual traders, plunged more than 28% in its worst day on record. According to Matt Maley, chief market strategist at Miller Tabak, the sharp move suggested forced selling, as heavy leverage had built up in silver positions and the sudden decline likely triggered margin calls, as per the CNBC report.
Apple, Microsoft and KLA Earnings Add to US Stock Market Volatility
Earnings news added to the mixed tone of the session. Apple shares swung between gains and losses after the company exceeded fiscal first-quarter expectations and reported a strong increase in iPhone sales. A day earlier, Microsoft shares had fallen 10% following earnings, marking their biggest one-day drop since 2020 and erasing more than $350 billion in market value. KLA Corp also slumped, losing more than 15% after issuing a forecast that pointed to slower growth.
January Ends Higher for Major Indexes Despite This Week’s Selloff
Even with Friday’s losses and a volatile month, the major indexes finished January in positive territory. The S&P 500 gained 1.4% for the month, the Dow rose 1.7%, and the Nasdaq added 1%, as per the CNBC report. Small-cap stocks outperformed, with the Russell 2000 climbing more than 5% in January.
FAQs
Why did US stocks fall today?
Stocks slipped mainly due to continued weakness in technology shares and broader market volatility.
What happened to the iShares Silver Trust (SLV)?
SLV plunged more than 28%, marking its worst single-day drop ever.