Is Kevin Warsh the Next Fed Chair? Markets Weigh Big Tech Earnings as Trump Teases Fed Nominee
It was another event-packed Thursday on Wall Street, as investors digested a wave of Big Tech earnings, a surprise government spending agreement, and late-breaking comments from Trump hinting at a major shift at the Federal Reserve.
Just hours after markets closed, Trump said he would announce his nominee for Fed chair on Friday morning, raising speculation that former Fed Governor Kevin Warsh could be tapped for the role.
CNBC
Stocks Recover From Early Losses
U.S. stocks opened sharply lower Thursday but recovered through the afternoon, aided by easing political uncertainty after the Senate and White House reached a spending agreement, reducing the risk of a government shutdown.
By the close:
-
The $S&P 500(.SPX)$ slipped 0.1%
-
The Dow Jones Industrial Average gained 56 points, or 0.1%
-
The Nasdaq Composite fell 0.7%, pressured by weakness in technology stocks
Big Tech Earnings Drive Diverging Market Reactions
The tech-heavy Nasdaq lagged as investors reacted cautiously to $Microsoft(MSFT)$ earnings, which reignited concerns about whether massive AI spending will deliver sufficient long-term returns.
Microsoft faced capacity constraints that limited its ability to meet demand for cloud computing, while its ambitious plans to expand Copilot AI capabilities consumed a larger share of remaining resources.
By contrast, $Meta Platforms, Inc.(META)$ saw a more enthusiastic response, despite also committing significant capital to artificial intelligence.
Apple Caps the Day With Earnings Surprise
After the close, $Apple(AAPL)$ added another layer of drama by reporting earnings that easily beat Wall Street expectations. The company called the quarter its “best-ever” for the iPhone, though performance across other product segments was more mixed.
Apple shares were modestly higher in late trading, suggesting investors were encouraged, but not euphoric, about the results.
Market Snapshot
-
Dow Jones Industrial Average: +0.11%
-
S&P 500: -0.13%
-
Nasdaq Composite: -0.72%
-
Hot stock: $Southwest Airlines(LUV)$ (+18.7%)
-
Biggest loser: $Las Vegas Sands(LVS)$ (-14.0%)
-
Best sector: Communication Services (+2.9%)
-
Worst sector: Information Technology (-1.9%)
What to Watch Next
Friday is shaping up to be anything but quiet, with:
-
Trump’s official announcement of his Fed chair nominee
-
Another slate of earnings reports, including Exxon Mobil, Chevron, American Express, and Verizon
Between Fed leadership uncertainty, AI-driven earnings volatility, and easing fiscal risks, markets are bracing for another potentially headline-driven trading session…
[Salute]
If you found this summary helpful, be sure to like, comment and subscribe to stay informed on the economic trends shaping markets.
This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.
[Salute]
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
