US stock markets fell on Friday after President Donald Trump nominated former Federal Reserve governor Kevin Warsh as the next chairman of the central bank, a move that rattled investors already on edge over inflation and the future path of interest rates. The announcement pushed major indices into the red and triggered sharp moves across equities, currencies, and commodities.
By early afternoon in New York, the S&P 500 was down 0.8 per cent, the Dow Jones Industrial Average had fallen 1 per cent, and the Nasdaq Composite was also lower by 1 per cent. Losses deepened after the opening bell, with the Dow shedding nearly 147 points shortly after markets opened, while the S&P 500 and Nasdaq each slid more than 0.3 per cent in early trading.
Warsh, who is set to succeed Jerome Powell if confirmed, has previously criticised the Federal Reserve’s current leadership and is seen as more closely aligned with Trump’s long-running push for lower interest rates. The nomination heightened uncertainty about the central bank’s independence and policy direction at a time when fresh economic data is already fuelling inflation concerns.
Producer prices rose more than expected in December 2025, signalling that inflationary pressures could intensify in the months ahead. The data complicated the market reaction to Warsh’s nomination, as investors weighed Trump’s preference for looser monetary policy against signs that price growth may require tighter conditions.
The US dollar briefly turned volatile following the announcement, weakening against a basket of major currencies before recovering lost ground later in the session. The currency’s rebound added pressure to commodities, particularly precious metals, which saw steep sell-offs.
Among individual stocks, Apple shares fell 1.5 per cent despite the iPhone maker reporting stronger-than-expected profits for the December quarter. Microsoft slipped 0.1 per cent after a sharp selloff a day earlier linked to weaker cloud revenue. In contrast, SanDisk surged nearly 20 per cent after forecasting better-than-expected third-quarter profits driven by rising demand for AI-related data storage.
Verizon jumped 7 per cent after the wireless carrier issued an upbeat annual profit forecast. American Express dropped 2.5 per cent even as it projected earnings above Wall Street expectations, while KLA Corp slid 7.7 per cent despite beating forecasts for quarterly profit and revenue. Energy stocks were mixed, with Chevron gaining 1 per cent after reporting strong results and Exxon Mobil falling 1 per cent despite also beating estimates.
In commodity markets, gold prices tumbled sharply as profit-taking accelerated and the stronger dollar weighed on bullion. Spot gold fell as much as 8 per cent at one point, later trading down nearly 6 per cent at around $5,081 an ounce. Silver plunged almost 14 per cent, platinum dropped more than 12 per cent, and palladium slid over 8 per cent, marking one of the most dramatic single-day sell-offs in the metals market in recent months.
Oil prices were steadier, with Brent crude trading near $70 a barrel and US benchmark West Texas Intermediate holding close to $65. The energy market remained on edge as Trump renewed warnings toward Iran, adding a layer of geopolitical tension to an already volatile global backdrop.
The sharp, cross-market reaction underscored how sensitive investors remain to shifts in US economic leadership, with Trump’s pick for Fed chair amplifying fears that political pressure could reshape monetary policy just as inflation risks re-emerge.
