Market Reacts to Fed Nomination and Tech Earnings Outlook
President Trump's nomination of Kevin Warsh as the next Federal Reserve chair sent ripples through financial markets, with the dollar gaining 0.8% on the news. Warsh, a former Fed governor known for his hawkish stance on inflation, faces a divided central bank if confirmed by the Senate.
The upcoming January jobs report, expected to show 65,000 new positions, will test the Fed's assessment of labor market weakness. Meanwhile, tech giants Alphabet and Amazon prepare to report earnings amid an industry-wide surge in AI investment.
Precious metals suffered a sharp correction, with gold dropping 9% and silver plunging 28% in a single day. This volatility contrasts with the steady march of tech spending, as Meta and Microsoft's increased investment targets likely foreshadow similar moves from their competitors.
