Equities Fall, Precious Metals Plunge Intraday as Markets React to Trump's Fed Chair Nominee

02:22 PM EST, 01/30/2026 (MT Newswires) -- US benchmark equity indexes were lower intraday, while gold and silver prices slumped after President Donald Trump nominated Kevin Warsh to be the next Federal Reserve chair.

The Nasdaq Composite was down 0.8% at 23,496.4 after midday Friday, while the Dow Jones Industrial Average fell 0.6% to 48,775.9. The S&P 500 lost 0.5% to 6,932.2. Among sectors, materials saw the steepest decline, while consumer staples led the gainers.

Trump has picked Warsh to replace Jerome Powell as Fed chair in May. Warsh served as a governor on the central bank's board from 2006 to 2011.

"Previously known as somewhat of an inflation hawk, having shifted his take on policy in line with the administration's call for a further reduction in policy, some question whether Warsh will add to concerns of (Fed) independence," Stifel said in a note.

Trump has repeatedly attacked Powell for not slashing the central bank's key lending rate more aggressively. The Fed held interest rates steady earlier in the week after delivering three back-to-back cuts last year amid concerns about the labor market.

Gold slumped 9.4% to $4,818.30 per troy ounce intraday, while silver plunged 28% to $85.63 per ounce, both retreating from record highs. The US dollar index was last up 0.8%.

"The prospect of a new Fed leadership boosted the dollar and weighed heavily on gold, which tumbled below the $5,000 level," D.A. Davidson said in a note.

West Texas Intermediate crude oil was down 1.1% at $64.68 a barrel intraday.

"Oil prices moved lower, pressured by signs that the US could reopen dialogue with Iran over its nuclear program, easing fears of supply disruptions linked to potential military escalation," D.A. Davidson said.

St. Louis Fed President Alberto Musalem said Friday it would be "unadvisable" to ease monetary policy into accommodative territory as inflation remains above policymakers' target.

"I could support a lower policy rate if further signs of labor market weakness emerge, provided there are no signs of increased persistence in above-target inflation and inflation expectations remain anchored," Musalem said. "I could also support lowering the nominal policy rate if expected inflation declines sustainably to 2% or below."

US Treasury yields were mixed intraday, with the 10-year rate up 1.6 basis points at 4.24% and the two-year rate decreasing two basis points to 3.53%.

In company news, American Express (AXP) shares were down 3.1%, the biggest drop on the Dow, after the payments company's fourth-quarter earnings fell slightly short of Wall Street's expectations.

Visa (V) was the second-worst performer on the Dow, down 2%. The payments giant's fiscal second-quarter outlook late Thursday implied a step-down in sequential revenue growth.

Verizon Communications (VZ) shares jumped 10% intraday Friday, the top gainer on the Dow and among the best on the S&P 500. The telecommunications giant provided a full-year earnings outlook above the Street's estimates and recorded better-than-expected fourth-quarter results amid strong growth in postpaid phone subscribers.

In economic news, US producer price growth unexpectedly accelerated in December as the services index logged the largest increase since July, the Bureau of Labor Statistics reported.

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