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Markets Reprice After Warsh Tapped for Fed Chair, Sending Stocks Lower and Gold Tumbling

Investors view the pick as hawkish, reducing expectations for rapid rate cuts.

Overview

  • U.S. stocks fell on Jan. 30 as the Dow closed down 179.09 points to 48,892.47 after dropping more than 600 intraday, while the Nasdaq lost 223.30 points.
  • The dollar strengthened sharply with the yen sliding to about ¥154.73–83 per dollar, a ¥1.68 move weaker from the prior day.
  • Gold futures for April settled at $4,745.10 per ounce, down $609.70 (about 11%), and silver dropped roughly 31% on dollar strength and profit-taking after an eight-session gold rally.
  • Treasury yields rose on expectations of a less accommodative Fed, pressuring major sectors including financials and big technology names, with declines in shares such as Visa and 3M.
  • Stronger-than-expected December wholesale inflation and concerns over a partial U.S. government shutdown added to the risk-off tone across markets.