US Equity Indexes Muted, Treasury Yields Rise After Trump Appears to Rule Out Hassett as Next Fed Chair

03:55 PM EST, 01/16/2026 (MT Newswires) -- US equity indexes were muted to mixed, while government bond yields jumped ahead of Friday's close after it emerged that National Economic Council Director Kevin Hassett may not be the frontrunner to become the next chair of the Federal Reserve.

The Nasdaq Composite was almost unchanged at 23,542.6, and the S&P 500 was little changed at 6,950.3, while the Dow Jones Industrial Average was steady at 49,444.2.

Materials, communication services, and utilities were among the steepest decliners. Industrials and real estate led the gainers.

On Friday, former Federal Reserve Governor Kevin Warsh emerged as the top choice for central bank chair following President Trump's remarks about another contender, National Economic Council Director Kevin Hassett, multiple news outlets reported. "I actually want to keep you where you are, if you want to know the truth. Kevin Hassett is so good," Trump was cited as saying in a Dow Jones report published by Morningstar.

Trump's reluctance to nominate Hassett as Fed chair contributed to declines in US stocks and bonds Friday morning, Tom di Galoma, a managing director at Mischler Financial Group, said in the Dow report. Hassett was the candidate regarded as most likely to advocate for lower rates. Bond prices and yields are inversely correlated.

Most US Treasury yields jumped, with the 10-year yield up 5.1 basis points to 4.21% and the two-year rate higher by three basis points to 3.59%.

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