US Equity Indexes Sink Following Warsh's Nomination as Fed Chair, Hot Producer Price Inflation Print

01:29 PM EST, 01/30/2026 (MT Newswires) -- US equity indexes slumped in midday trading on Friday as Kevin Warsh's nomination as Federal Reserve chair boosted the dollar while sending precious metals into a tailspin, and as producer price inflation turned hot in December.

The Nasdaq Composite dropped 1% to 23,448.5, with the S&P 500 down 0.8% to 6,913.3 and the Dow Jones Industrial Average lower by 1% to 48,574.8. Materials and technology led the decliners, while health care and consumer staples were the only gainers.

On Friday, President Donald Trump nominated Kevin Warsh, a former Fed governor, to succeed Jerome Powell as the chair of the Federal Reserve. Warsh is said to be a proponent of a smaller Fed balance sheet, an inflation hawk, and a critic of quantitative easing, according to media reports.

Trump has criticized Chair Powell on multiple occasions for being "too late" in cutting interest rates, which means investors will watch Warsh's policy moves closely after he takes over the reins.

"While arguing for higher rates when on the board, he [Warsh] has since called for a new regime at the Fed and lower interest rate policy," Stifel Chief Economist Lindsey Piegza said in a note. "Thus, seemingly checking all the boxes for the White House."

Nevertheless, the ICE US Dollar Index, which reflects the greenback's performance against a basket of the world's major currencies, rose 0.7% to 96.92 by Friday afternoon. Gold futures sank 8.7% to $4,853.4 per troy ounce, and silver futures plunged 25% to $92.78 per troy ounce following the Fed chair nomination announcement.

In economic news, the US Bureau of Labor Statistics reported Friday the Producer Price Index rose by 0.5% in December following a 0.2% increase in November, above the 0.2% gain expected in a Bloomberg-compiled survey.

After excluding food and energy prices, core PPI jumped by 0.7%, above the 0.2% gain expected and following a flat reading in the previous month.

US Treasury yields were mixed, with the 10-year Treasury yield up 1.8 basis points to 4.25%. The two-year yield fell 1.4 basis points to 3.54%.

In company news, Apple (AAPL) reported fiscal Q1 above Wall Street's estimates amid strong iPhone demand. "We don't believe Apple (AAPL) is going to get a pass on memory concerns yet, as management didn't ring-fence June quarter memory risk, setting up for a make-or-break March quarter report and June quarter guide in late April," Morgan Stanley said. Apple's (AAPL) shares declined 1.2%.

Tesla (TSLA) was the only Magnificent-7 company to be trading in the positive territory after midday, with Meta Platforms' (META) 2.8% drop leading this pack of mega-caps.

Verizon Communications (VZ) reported Q4 adjusted earnings and net revenue above market expectations, and also authorized a program to buy back up to $25 billion of its common stock. Shares jumped 10%, the Dow's top gainer.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.