Market Recap: Trump's Fed Pick Spikes Volatility; Nasdaq Dips 0.94% as Gold Plummets 8.26%

The U.S. market closed in a bearish mood on January 30, 2026, as President Trump’s nomination of Kevin Warsh for Federal Reserve Chair triggered a sharp selloff in equities and commodities. The Dow Jones Industrial Average fell 0.365% to $48,892.47, the S&P 500 dropped 0.43% to $6,939.03, and the Nasdaq Composite plunged 0.943% to $23,461.82. Commodities saw mixed results: WTI crude oil edged up 0.49% to $65.74, while gold and silver crashed by 8.26% and 25.23%, respectively. Sectors were split, with Consumer Staples (+1.11%) and Health Care (+0.24%) outperforming, while Materials (-5.44%) and Information Technology (-1.73%) lagged. The market’s mixed sentiment reflected uncertainty over Warsh’s hawkish stance and its implications for monetary policy.

Hot Stocks

Tech Giants:

• Tesla (TSLA): +3.32%
• Apple (AAPL): +0.46%
• Nvidia (NVDA): -0.72%
• Amazon (AMZN): -1.01%
• Meta (META): -2.95%

Energy & Materials:

• Alcoa (AA): -6.32%
• Air Products (APD): +6.44%

Retail & Consumer:

• Colgate (CL): +5.92%
• Verizon (VZ): +11.83%

Chinese ADRs:

• 111 (YI): +41.20%
• Phoenix Asia (PHOE): +997.44%

Analysts Opinions

Analysts attributed the market’s volatility to Trump’s nomination of Kevin Warsh, a former Fed governor with a hawkish reputation, as the next Federal Reserve Chair. The move raised concerns about tighter monetary policy and reduced Fed independence, triggering a sell-off in gold and silver. "Warsh’s nomination signals a potential shift toward inflation control over accommodative rates, which could weigh on risk assets," noted one analyst. The tech sector’s underperformance was linked to fears of higher borrowing costs, while energy stocks faced pressure from weak drilling data and oversupply concerns. Despite the selloff, some analysts highlighted long-term opportunities in AI-driven sectors like Broadcom and Arm Holdings, which reported strong earnings and growth prospects.

Macro & Corporate News

1. Trump Picks Kevin Warsh for Fed Chair

President Trump’s nomination of Kevin Warsh, a former Fed governor, sent shockwaves through markets. Warsh’s hawkish stance and advocacy for "regime change" at the Fed—calling for reduced balance sheet size and tighter monetary policy—spooked investors. The dollar index surged, while gold and silver plummeted by 8.26% and 25.23%, respectively. The move also pressured Bitcoin, which dipped to $81,000 before stabilizing.

2. Precious Metals Crash: Silver Plunges 25%

Comex Silver futures fell 25.23% to $85.56, marking one of the largest single-day drops in history. Gold futures also collapsed by 8.26% to $4,912.70, as investors unwound positions in response to the Fed’s perceived shift toward tighter policy. The selloff was exacerbated by profit-taking after months of speculative buying driven by geopolitical tensions and a weak dollar.

3. Trump’s Fed Nomination Sparks Debate on Monetary Policy

Warsh’s nomination reignited debates over the Fed’s role in economic stability. Critics argued his proposals to reduce the Fed’s $6.6 trillion balance sheet and prioritize inflation control over employment could destabilize markets. Supporters, including hedge fund billionaire Stanley Druckenmiller, praised his "balanced approach" and experience. The Senate Banking Committee will now scrutinize his nomination, with confirmation expected by mid-February.

4. Tech Sector Weakness Drives Nasdaq Decline

The Nasdaq’s 0.94% drop was led by a 2.95% plunge in Meta (META) and a 1.01% decline in Amazon (AMZN). Analysts attributed the weakness to concerns over higher interest rates and reduced investor appetite for high-growth tech stocks. However, AI-driven companies like Broadcom (AVGO) and Arm Holdings (ARM) remained resilient, with Cathie Wood’s ARK Invest adding $26 million to Broadcom’s position.

5. Energy Sector Mixed Amid Production Woes

While the Energy sector edged up 0.04%, individual stocks like Alcoa (AA) fell 6.32%. U.S. oil drilling continued to flounder, with active rigs at 411, down 68 from a year ago. WTI crude prices rose slightly to $65.74, but production remained below record highs. Geopolitical tensions in the Middle East and Russia-Ukraine war provided some support to crude prices.

6. Streaming Price Hikes and Ad-Tier Growth

Streaming platforms like Netflix and Disney+ raised prices in 2025-2026, pushing consumers toward ad-supported tiers. Ad-tier usage for Disney+ rose 16% year-over-year, while Netflix saw an 11% increase. The shift reflects a broader industry strategy to balance revenue and affordability, though analysts warned of potential subscriber attrition.