Technology stocks continued to face selling pressure even as investors reacted positively to Kevin Warsh’s nomination as Federal Reserve chair.
U.S. stock markets fell in Friday’s trading session (January 30), with technology shares remaining under pressure despite a generally positive investor response to President Donald Trump’s nomination of Kevin Warsh to serve as chairman of the Federal Reserve (Fed).
Oil prices edged slightly lower, holding near six-month highs, as investors monitored tensions between the United States and Iran.
At the close, the S&P 500 fell 0.43% to 6,939.47 points, marking its third consecutive losing session. The Nasdaq Composite dropped 0.94% to 23,461.82 points. The Dow Jones Industrial Average lost 179 points, or 0.36%, to close at 49,461.82 points.
At the session’s low, all three major indexes were down more than 1%.
In a post on the social media platform Truth Social, President Trump announced that he had nominated Warsh to replace Fed Chair Jerome Powell when Powell’s term ends in May 2026. “I have known Kevin for a long time, and I have no doubt that he will become one of the great, even the greatest, Fed Chairs,” Trump wrote.
According to analysts, Warsh’s selection would help ease concerns over the Fed’s independence, given his prior experience as a Fed governor and his long-standing reputation for a strong anti-inflation stance. Experts do not rule out the possibility that Warsh could cut interest rates in the short term as Trump desires, but they believe he would not consistently act under presidential pressure, thereby preserving the Fed’s credibility in monetary policy.
The U.S. dollar rebounded and Treasury yields remained firm, signaling investor satisfaction with Trump’s choice for the Fed chair position.
“Kevin Warsh’s nomination as Fed Chair is exactly what the market was hoping for. He is a steady hand, well respected in the markets, and is seen as someone who will preserve the Fed’s independence—an important factor for investors. More importantly, Warsh faces fewer obstacles to Senate confirmation,” said Richard Saperstein, Chief Investment Officer at Treasury Partners, in comments to CNBC.
Nevertheless, technology stocks continued to face selling pressure as investors digested earnings reports from major Big Tech companies.
Apple shares fluctuated between gains and losses before closing up nearly 0.5%, despite the company issuing first-quarter 2026 revenue and profit guidance that exceeded expectations and reporting much stronger-than-forecast iPhone sales for the fourth quarter of 2025.
Microsoft shares fell more than 0.7% after plunging 10% on Wednesday following a disappointing earnings report. That Wednesday session marked the stock’s steepest one-day decline since 2020, wiping out more than $350 billion in market capitalization.
Shares of KAL Corp. dropped more than 15% after the semiconductor equipment manufacturer warned that revenue growth could slow in the period ahead.
Despite Friday’s decline, U.S. equities still ended the month higher. The S&P 500 and Dow Jones posted monthly gains of 1.4% and 1.7%, respectively, while the Nasdaq rose 1%.
In energy markets, Brent crude futures in London slipped $0.02 per barrel, or 0.03%, to settle at $70.69 per barrel. WTI crude futures in New York fell $0.21 per barrel, or 0.32%, to $65.21 per barrel.
Despite the modest declines, oil prices remained near their highest levels since early August 2025, reached in Thursday’s session.
“Market attention is focused on Iran. Oil prices have already priced in a significant geopolitical risk premium related to Iran, but it is very difficult to quantify the situation right now. The key question is what Tehran would do if the U.S. were to take action against Iran,” said fund manager John Kilduff of Again Capital, quoted by Reuters.
Both the U.S. and Iran have signaled a willingness to engage in dialogue to ease tensions. However, on Friday, Iran stated that its defense capabilities should not be included in any discussions with Washington.
“The rally in oil prices has stalled due to the prospect of a ceasefire agreement between Russia and Ukraine, as well as the likelihood that the U.S. will refrain from striking Iran since the Trump administration has left the door open to negotiations,” said Phil Flynn, an analyst at Price Futures Group.
In a Reuters survey, analysts forecast that oil prices will hover around $60 per barrel this year, as downward pressure from expected oversupply is offset by support from geopolitical risks that could disrupt supply.
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