CNBC Daily Open: We'll soon find out who the new Fed chair is

• Former Fed Governor Kevin Warsh is the favorite for Fed chair according to prediction market Kalshi, with sources confirming he visited the White House on Thursday
• Microsoft stock plummeted 10% in its worst day since March 2020, erasing $340 billion in market cap due to spending plans and slowing cloud growth
• Apple reported record fiscal first-quarter revenue driven by 'staggering' iPhone demand, but investor enthusiasm was muted amid concerns the company is behind on artificial intelligence development

Market Summary: Fed Chair Announcement and Tech Sector Volatility

Key Developments:

President Trump announced he will reveal his Federal Reserve Chair nominee Friday morning. Former Fed Governor Kevin Warsh is the leading candidate according to prediction market Kalshi, with sources confirming his White House presence Thursday.

Market Performance:

U.S. equities closed mixed Thursday, with the Nasdaq declining 0.72% and S&P 500 down 0.13%, while the Dow Jones gained 0.11%. The risk-off sentiment intensified Friday, with spot gold dropping over 4% and cryptocurrencies sliding to near two-month lows. Hong Kong's Hang Seng led regional losses, retreating nearly 2%.

Corporate Highlights:

• Microsoft suffered its worst day since March 2020, plunging 10% and erasing $340 billion in market cap due to concerns over cloud growth deceleration and elevated spending plans.

• Apple reported strong fiscal Q1 results with revenue beating estimates on "staggering" iPhone demand and optimistic current-quarter guidance. However, investor response was muted amid concerns the company lags in AI development.

• Meta shares rallied on positive analyst coverage.

Geopolitical and Policy News:

• Trump warned the UK against doing business with China as Prime Minister Starmer secured deals on tariffs, visa-free travel, and investment in Beijing.

• Denmark praised "constructive" high-level talks with the U.S. regarding Greenland.

• Trump, his sons, and the Trump Organization sued the IRS and Treasury for at least $10 billion over alleged improper tax disclosures.

• China unveiled plans to boost consumer spending through enhanced services consumption, including cruise tourism and sports events.

Notable Data:

Norway's sovereign wealth fund posted a record 2.36 trillion kronor ($246.9 billion) profit in 2025, achieving 13.5% returns driven by technology, financials, and materials sectors.