S&P futures experienced a decline on Friday, following a second consecutive day of losses for the S&P 500. However, the declines were moderated after President Donald Trump announced the nomination of Kevin Warsh to replace Jerome Powell as chair of the Federal Reserve. Futures associated with the broad market index experienced a decline of 0.4%, while Nasdaq 100 futures saw a reduction of approximately 0.5%. Dow futures experienced a decline of 170 points, representing a decrease of 0.4%. At one juncture, futures contracts experienced a decline of approximately 0.8% each. “I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” stated Trump.

Warsh’s selection is expected to alleviate worries regarding the independence of the Federal Reserve, given his background as a Fed governor and his firm position on inflation at various points. While he is likely to advocate for lower rates in the short term as Trump desires, the financial markets perceive him as an individual who may not consistently align with the president’s directives, thereby preserving the credibility of monetary policy. Gold futures experienced a decline exceeding 4%, whereas silver contracts saw a significant drop of 12%. Notwithstanding the recent declines, gold and silver have experienced substantial increases over the past year, rising by 80% and 209%, respectively. Treasury yields remained stable following Warsh’s appointment, indicating that Wall Street was generally supportive of Trump’s choice.

Apple experienced a slight decline in its shares despite surpassing fiscal first-quarter earnings and revenue expectations, bolstered by a notable increase in iPhone sales. Data storage company Sandisk experienced a 19% increase in its stock price following the release of robust guidance. KLA Corp experienced a decline of over 8% following the release of guidance indicating that the non-GAAP gross margin for the fiscal third quarter was below expectations. “This week brought the first wave of major tech earnings, with investors focused on results, guidance, and AI spending as a key market driver. … A clear theme is emerging, in our view,” stated Angelo Kourkafas.

“Companies are increasing their expenditure on AI-related infrastructure, and markets are rewarding those that can convert these investments into profits,” he added. “Companies lacking a definitive monetization strategy are encountering increased scrutiny.” He noted that although the technology sector is anticipated to continue providing robust profit growth, this momentum is decelerating compared to previous quarters as other sectors gain traction. This development aligns with “what we see as this year’s key theme: a broadening of market leadership,” Kourkafas stated.