Tech Under Pressure, Wall Street Plummets: Risk-Off Returns
US stocks weakened on Friday (January 30th), with the greatest pressure coming from the still-sluggish technology sector. Although the market tended to accept President Donald Trump's choice of Kevin Warsh as the Fed's nominee, risk-on sentiment remained resilient, making the indexes even more fragile at the end of the session.
The S&P 500 fell 0.5%, while the Dow Jones Industrial Average fell 241 points, or 0.5%. Both had fallen deeper—more than 1% at their session lows—indicating the market's continued volatility. However, overall, the S&P 500 still has a chance to close January higher, despite the month's choppy trading.
The Nasdaq suffered the hardest. This technology-dominated index fell 1.2%, confirming that investors remain cautious about growth sectors amid changing policy expectations and high market volatility.
Regarding Warsh, the market views him as someone who can ease concerns about the Fed's independence. His track record as a former Fed governor and his reputation for being tough on inflation have led investors to believe he won't simply "follow the president's lead." While Warsh may push for short-term interest rate cuts in line with Trump's expectations, market participants believe he will maintain the credibility of monetary policy.
The financial market reaction reinforces this narrative: the US dollar strengthened, while Treasury yields remained relatively stable. This combination suggests investors are quite comfortable with Warsh's choices—although in the stock market, particularly in technology, defensive mode remains dominant.
Source: Newsmaker.id
