5 Things to Know Before the Stock Market Opens

• Trump announced Kevin Warsh as his pick for Fed Chair, replacing Jerome Powell in May, calling him potentially 'one of the GREAT Fed Chairmen' after months of interviewing candidates
• Gold futures dropped 4.6% to $5,075 per ounce and silver plunged 13% to $99.80 after hitting record highs above $5,500 and $114 respectively, as investors took profits
• Sandisk shares soared over 20% in premarket trading after beating earnings estimates and projecting strong profit growth, while Apple and Visa also topped expectations

Market Summary: January 31, 2025

Key Market Movements

Stock futures pointed lower Friday, closing out a volatile week. Dow and S&P 500 futures declined 0.4%, while Nasdaq futures dropped 0.5%. Major indexes remain on track for monthly gains despite recent volatility.

Commodities and Currencies:

• Bitcoin fell to $82,600, its lowest level since April
• Gold futures plunged 4.6% to $5,075/ounce after reaching record highs above $5,500
• Silver crashed 13% to $99.80/ounce from yesterday's peak above $114
• Crude oil slipped to $65.15/barrel after hitting four-month highs
• 10-year Treasury yield rose to 4.25%

Federal Reserve Leadership Change

President Trump nominated Kevin Warsh, former Fed governor (2006-2011), to replace Jerome Powell as Federal Reserve Chair when Powell's term expires in May. The announcement initially helped moderate early morning losses in futures markets.

Corporate Earnings

Mixed results from major companies:

• Sandisk surged 20%+ premarket after beating estimates and projecting strong profit growth
• Apple and Visa topped earnings expectations
• American Express gained ground
• Exxon slipped 1%; Chevron unchanged
• Verizon and Colgate-Palmolive advanced

Government Funding

A deal reportedly reached between Senate Democrats and the White House to avoid government shutdown. Five of six spending bills would pass through September, with a two-week extension for Department of Homeland Security funding to continue immigration policy negotiations.

Market Implications

Precious metals profit-taking signals reduced safe-haven demand, though geopolitical uncertainties around Venezuela, Greenland, and Iran persist. Leadership transition at the Fed introduces monetary policy uncertainty as markets digest earnings and fiscal developments.