Nasdaq to lead losses as investors juggle earnings, Fed Chair appointment

• Kevin Warsh, known for his hawkish stance and desire to shrink the Fed's balance sheet, is expected to be nominated as Fed Chair, though he has recently supported rate cuts
• The Warsh appointment is viewed as restoring Fed independence with a 'conventional candidate,' causing gold and silver to retreat as speculative appeal for precious metals diminishes
• Congress reached a bipartisan agreement to avert a government shutdown just 48 hours before the deadline, which analysts say should benefit risk sentiment and remove a headwind for markets

Market Summary: Tech Weakness and Fed Chair Nomination Weigh on Futures

Market Overview:

US stock futures opened lower Friday, January 30, 2026, with the Nasdaq leading losses down 0.5%. Markets are navigating mixed corporate earnings and significant political developments affecting Fed policy expectations.

Key Developments:

Fed Chair Appointment: President Trump's expected nomination of Kevin Warsh as next Federal Reserve Chair is driving market volatility, dubbed the "Warsh Effect." The former governor is known for hawkish policies and balance sheet reduction advocacy, though he recently supported rate cuts. His appointment is pushing long-term yields higher and pressuring commodities—gold and silver are retreating as investors view Warsh as a "conventional candidate" rather than a "Trump stooge."

Corporate Earnings: Mixed Big Tech results continue weighing on sentiment. Apple gained in pre-market trading on record iPhone sales, while Microsoft's weak cloud growth dampened investor confidence. Energy giants Exxon and Chevron report Friday, providing insight into the oil sector.

Government Funding: A bipartisan agreement reached by Senate Democratic Leader Chuck Schumer and Republicans has effectively eliminated shutdown risk ahead of the 48-hour deadline. XTB's Kathleen Brooks noted this "should be good for risk sentiment" and represents "a massive relief for consumer and business confidence."

Market Implications:

The dollar strengthened on Warsh news while precious metals declined. Analysts suggest reduced political chaos could remove headwinds for financial markets, which have shown strength in early 2026. However, Warsh's focus on AI-driven inflation cooling and deregulation may create longer-term volatility in rate expectations.

The combination of tech earnings uncertainty and Fed leadership transition creates near-term turbulence despite positive resolution of government funding concerns.