Dow Futures Fall as Trump Taps Warsh; Gold, Silver Drop

Key Moments

Stock Index Futures Retreat After Fed Chair Nomination

U.S. stock futures traded lower Friday, narrowing earlier losses, after President Donald Trump named Kevin Warsh as his choice to succeed Jerome Powell as Chair of the Federal Reserve.

Futures tied to the Nasdaq 100, S&P 500, and Dow Jones Industrial Average were down 0.7%, 0.5%, and 0.5%, respectively, after the announcement that former Fed Governor Warsh would be tapped to lead the central bank.

“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,” Trump wrote on his Truth Social network.

Recent Equity Performance and Earnings Impact

Major U.S. equity benchmarks ended mostly in negative territory yesterday, weighed down by Microsoft and other software names as investors evaluated a wave of corporate earnings releases. Despite that pullback, the Dow, S&P 500, and Nasdaq started Friday with gains of 2%, 1.8%, and 0.8% for January, respectively, with the Dow positioned for a ninth consecutive month of advances.

On a weekly basis through Thursday, the S&P 500 and Nasdaq had risen 0.8%, while the Dow was about 0.1% lower.

Producer Price Data Surprises to the Upside

Traders also were processing the delayed release of December’s Producer Price Index. Headline PPI climbed 0.5% month-over-month, while core PPI – which excludes certain volatile components – increased 0.4%. Economists had anticipated 0.3% for both measures.

Sharp Pullback in Gold and Silver After Record Highs

Safe-haven precious metals retreated as investors took profits following record-setting moves the previous day. Gold futures dropped 5.5% in recent trading to about $5,050 per ounce after moving above $5,625 on Thursday. Silver futures fell roughly 14% to below $99 per ounce after climbing above $121.75 yesterday.

Rates, Dollar, Bitcoin, and Crude Oil

The yield on the 10-year Treasury – a key benchmark for consumer borrowing costs such as mortgages – was around 4.25%, up from 4.24% at Thursday’s close.

The U.S. dollar index, which measures the greenback against a basket of major currencies, gained 0.4% to 96.64, remaining near its lowest level in more than four years.

Bitcoin traded around $82,700, below its overnight peak of about $84,600.

West Texas Intermediate (WTI) crude oil futures, the U.S. benchmark, eased 0.3% to around $65.25 per barrel.

Major Stock Movers Following Earnings

Apple (AAPL) slipped 0.3% after initially rising in the wake of its earnings release yesterday afternoon.

Other notable post-earnings moves included:

Microsoft (MSFT) shares edged higher after a 10% decline yesterday. Meta Platforms (META) slipped about 1.3% in premarket trading after a 10% surge on Thursday.

How Warsh’s Nomination Could Shape Fed Policy

The nomination of Kevin Warsh introduces a potentially different approach to interest rate policy at the top of the Federal Reserve. The next Fed chief could be less inclined to pursue aggressive rate cuts than some of the other candidates previously under consideration.

On Friday, Trump stated on social media that Warsh will be his nominee for Fed Chair. If confirmed by the Senate, Warsh would take over in May, when Jerome Powell’s term as chair expires.

Warsh served on the Federal Reserve Board of Governors from 2006 to 2011 and emerged as the final choice over Trump Economic Advisor Kevin Hassett and BlackRock Executive Rick Rieder.

The appointment has implications for the Fed’s monetary strategy and the future path of the federal funds rate, which affects borrowing costs across the economy. Warsh, who has a background as a lawyer and banker, has appeared in media interviews supporting Trump’s agenda and calling for lower rates.

“We can lower interest rates a lot,” Warsh said on Fox News in October.

Trump Formally Introduces Warsh as Powell’s Successor

Reiterating the decision, Trump named Kevin Warsh as his pick to lead the U.S. central bank once Powell’s term ends in May, pending Senate approval. Warsh previously served as a Fed governor between 2006 and 2011 and was chosen over finalists including Trump economic advisor Kevin Hassett and BlackRock executive Rick Rieder.

“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,” Trump wrote in a social media post Friday morning.

The Fed Chair oversees the central bank and leads the 12-member committee that determines monetary policy. The Federal Reserve is charged with maintaining low inflation and high employment, primarily through adjustments to the federal funds rate.

IRS Workforce Cuts Raise Risk of Tax Refund Delays

Separate from market developments, changes at the Internal Revenue Service could affect taxpayers this filing season. The Taxpayer Advocate Service, an independent body within the IRS, indicated in its annual report to Congress on Wednesday that most taxpayers are expected to experience a generally smooth 2026 filing season. However, individuals needing direct assistance from the IRS or those who submit incorrect returns may face delays and complications.

“The success of the filing season will be defined by how well the IRS is able to assist the millions of taxpayers who experience problems,” wrote National Taxpayer Advocate Erin M. Collins in the report.

Workforce reductions and tax code changes may slow service for filers requiring help. In 2025, the federal government laid off 27% of IRS employees, and the agency underwent multiple leadership transitions, including seven different commissioners last year. Scott Bessent, who also holds the role of Secretary of the Treasury, is currently serving as acting IRS commissioner.

The IRS has stated it needed to add 3,500 new customer service representatives to handle taxpayer phone inquiries, but the Taxpayer Advocate Service reported that the agency fell short of that objective and is currently 1,000 employees below the targeted staffing level.

Index Futures Indicate Softer Open

Additional futures data showed contracts linked to the Dow Jones Industrial Average lower by 0.7%. S&P 500 futures were also down 0.7%, while Nasdaq 100 futures were 0.8% lower, signaling a weaker start to the session at the end of what has been a winning month for major indexes.