Markets Slip as Tech Wobbles and Warsh Pick Calms Fed Fears

CNBC and the Wall Street Journal contributed to this report.

Stocks skidded on Friday as tech names stayed shaky, even after investors mostly shrugged with relief at President Trump’s pick of Kevin Warsh to run the Federal Reserve. The S&P 500 dipped 0.3% and the Nasdaq slid about 0.5%, while the Dow lost roughly 239 points (about 0.5%). Still – somehow – the major indexes are on track to finish January in the green.

Why the dip? A few things piled up. First, wholesale inflation came in hotter than expected: December’s core producer price index jumped 0.7% month-over-month versus the roughly 0.3% economists were expecting. That nudged Treasury yields up and pinned down risky assets. Second, tech earnings are still giving traders whiplash: a mix of strong results and cautious guidance is leaving investors picky about which AI bets to back.

Enter Kevin Warsh. Trump posted a gushing endorsement on Truth Social, calling Warsh “one of the GREAT Fed Chairmen.” Markets liked the pick because Warsh – a former Fed governor – is seen as experienced and credible. “Kevin Warsh’s nomination for Fed Chair is exactly what markets were hoping for,” said Richard Saperstein, CIO at Treasury Partners, arguing Warsh will likely preserve central bank independence while being willing to do what Trump wants on rates in the short term. That comfort showed up in commodity markets: gold futures fell more than 4% and silver plunged about 12% as traders dialed back some haven bets.

But Warsh wasn’t a magic salve. The hotter PPI reminded everyone that inflation’s pipeline still has surprises, and that keeps pressure on yields and profit margins. The result: a tepid market mood where some winners popped and others got punished.

Big tech results dominated the week and the fallout was uneven. Apple beat the numbers handily – iPhone revenue surged – yet shares still edged down ~1%, which tells you how sensitive investors are to anything beyond pure beats. Storage-maker SanDisk (or Sandisk) lit up after upbeat guidance, jumping roughly 20% on the day. On the flip side, chip-equipment name KLA disappointed on margin outlook and sank about 8%.

“Companies are ramping up AI-related infrastructure spending, and markets are rewarding those that can turn these investments into earnings,” said Angelo Kourkafas, senior global investment strategist at Edward Jones. “Firms without a clear monetization strategy are facing more scrutiny.”

Gold and silver’s tumble was another market signal: when safe-haven metals sell off sharply, traders often interpret that as confidence in central-bank stability – or at least less fear. That said, both metals are still way up over the past year despite Friday’s moves.

The PPI surprise pushed yields higher and reminded investors that inflation still has momentum in services. That, in turn, complicates the Fed’s path. Warsh’s nomination appears to comfort markets about the Fed’s independence, but it doesn’t eliminate economic data that could force the Fed to be cautious about cutting rates further.

Odd little footnotes

• Treasury moves: yields ticked up after the PPI release.
• Precious metals: big down day after a long bull run.
• Stocks-by-stock: Chevron and other cyclicals held up ok; Sandisk popped after forward guidance; Apple climbed on revenue wins but didn’t rally; some software names remain under pressure.

A day of mixed data and mixed earnings left investors slightly shaken but not panicked. Tech remains the market’s mood barometer: when AI winners show paths to real profits, the indices rip higher; when guidance disappoints or inflation re-surfaces, the same names get sold fast. For now, the S&P still looks set to eke out a January gain – which, after weeks like this, counts as a win.