Sharp drops hit Wall Street as technology stocks sank and bitcoin plunged again to roughly half its record price set in the fall. Several discouraging reports on the U.S. job market also knocked down yields in the bond market on Thursday. The S&P 500 fell 1.2% for its sixth loss in the seven days since it set an all-time high. The Dow Jones Industrial Average dropped 1.2%, and the Nasdaq composite sank 1.6%. Bitcoin briefly fell below $64,000, while gold and silver prices resumed their sharp slides. Stock indexes also fell across much of Europe and Asia.
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More drops for technology stocks weighed on Wall Street. The S&P 500 fell 0.5% Wednesday for its fifth modest loss in the last six days. The Dow Jones Industrial Average rose 0.5%, and the Nasdaq composite sank 1.5%. More than twice as many stocks rose within the S&P 500 than fell, but the index sank as Advanced Micro Devices and other influential tech stocks weakened. AMD dropped even though the chip company reported a stronger profit for the latest quarter than analysts expected. Gold and silver prices pared gains from earlier in the day, while Treasury yields held relatively steady.
The U.S. stock market sank after a mixed day of trading. The S&P 500 fell 0.8% Tuesday. The Dow Jones Industrial Average dipped 0.3%, and the Nasdaq composite lost 1.4%. Nvidia, Microsoft and other influential Big Tech stocks weighed on the market. So did software companies and others seen as potential losers to competitors powered by artificial intelligence. But the majority of stocks rose in the S&P 500, including Palantir Technologies, which reported a better profit than expected. Gold and silver prices bounced higher following their latest sell-off. Treasury yields eased in the bond market.
Bullied and buffeted by President Donald Trump’s tariffs for the past year, America’s longstanding allies are desperately seeking ways to shield themselves from the president’s impulsive wrath. U.S. trade partners are cutting deals among themselves —- sometimes discarding old differences to do so — to diversify their economies away from a newly protectionist United States. And central banks and global investors are dumping dollars and buying gold. Together, their actions could diminish U.S. influence and mean higher interest rates and prices for Americans already angry about the high cost of living.
Stocks fell on Wall Street, while gold and silver prices plunged as investors tried to gauge what President Donald Trump’s new nominee to lead the Federal Reserve will mean for interest rates. The S&P 500 dropped 0.4% after sinking as much as 1.1% earlier on Friday. The Dow Jones Industrial Average fell 0.4%, and the Nasdaq composite lost 0.9%. The value of the U.S. dollar rallied but only after swiveling a couple times. Gold’s price dropped 11%, and silver plummeted more than 30% as tremendous rallies for both metals suddenly halted. Treasury yields held relatively steady in the bond market.
AP Wire
President Donald Trump’s nomination of Kevin Warsh to chair the Federal Reserve could bring about sweeping changes at a central bank that dominates the global economy and markets like no other. Warsh, if approved by the Senate, will be under close scrutiny from financial markets and Congress given his appointment by a president who has loudly demanded much lower rates than many economists think are justified by economic conditions. Whether he can maintain the Fed’s long time independence from day-to-day politics while also placating Trump will be a tremendous challenge. Warsh would replace current chair Jerome Powell when his term expires in May. Trump chose Powell to lead the Fed in 2017 but this year has relentlessly assailed him for not cutting interest rates quickly enough.
President Donald Trump says he’ll tap former Federal Reserve governor Kevin Warsh as the next Fed chair to replace Jerome Powell in May. The appointment, which requires Senate confirmation, amounts to a return trip for Warsh, 55, who was a member of the Fed’s board from 2006 to 2011. He was the youngest governor in history when he was appointed at age 35. He is currently a fellow at the right-leaning Hoover Institution and a lecturer at the Stanford Graduate School of Business. Prior to serving on the Fed’s board in 2006, Warsh was an economic aide in George W. Bush’s Republican administration and was an investment banker at Morgan Stanley.
A day of dramatic swings on Wall Street, including Microsoft's worst drop in nearly six years, finished with only relatively modest moves. The S&P 500 edged down by 0.1% Thursday after flirting with its record high in the morning and falling by as much as 1.5% later in the day. The Dow Jones Industrial Average added 0.1%, and the Nasdaq composite fell 0.7%. Microsoft tumbled following its profit report, but a big gain for Meta Platforms helped to nearly offset it. Gold's price swung sharply following its nearly relentless rise, while oil prices rose.
AP Wire
The Federal Reserve pushed the pause button on its interest rate cuts Wednesday, leaving its key rate unchanged at about 3.6% after lowering it three times last year. With the economy growing at a healthy pace and no signs of deterioration in hiring, Fed officials likely see little reason to rush any further rate cuts. While most policymakers do expect to reduce borrowing costs further this year, many want to see evidence that stubbornly-elevated inflation is falling closer to the central bank’s target of 2%. According to the Fed’s preferred measure, inflation was 2.8% in November, slightly higher than a year ago.
Few ripples washed through Wall Street after the Federal Reserve decided to keep its main interest rate steady, just like investors expected. The U.S. stock and bond markets each remained at a virtual standstill on Wednesday, while the U.S. dollar stabilized following its sharp recent slide against its peers. Some of the biggest action remained in the gold market, where the metal’s price jumped to another record. The S&P 500 inched down by less than 0.1% from its all-time high. The Dow Jones Industrial Average was also nearly unchanged, and the Nasdaq composite added 0.2%.