US stocks slip as tech drags, Warsh Fed nomination steadies policy outlook

• President Trump nominated Kevin Warsh, a former Fed governor (2006-2011) considered market-friendly and dovish, as the next Federal Reserve chair, ending months of speculation about monetary policy direction.
• Microsoft shares plunged 10% despite beating earnings expectations, highlighting investor concerns about massive AI infrastructure spending without proven returns, while Apple reported record revenue of $143.8 billion, up 16% year-over-year.
• The S&P 500 is testing psychological resistance at the 7,000 level with short-term support around 6,900, as bullish sentiment (put-call ratio of 0.84) conflicts with valuation concerns during earnings season.

Summary

Market Performance:

US stocks opened lower on Friday, January 30, 2026, with the S&P 500 down 0.3%, Nasdaq Composite falling 0.4%, and Dow Jones dropping 125 points (0.3%). Despite the decline, the S&P 500 remained on track for modest January gains, with Thursday's close at 6,969 points approaching the psychologically significant 7,000 resistance level.

Federal Reserve Leadership:

President Trump officially nominated Kevin Warsh, 55, as the next Federal Reserve chair. Warsh, a former Fed governor (2006-2011) and current Stanford Hoover Institution fellow, is considered market-friendly and dovish, signaling potential for lower interest rates that could support growth stocks.

Earnings Season Divergence:

Technology sector earnings revealed a split narrative. Apple reported record results with $143.8 billion revenue (up 16% year-over-year) and all-time highs in iPhone and Services. However, Microsoft plunged 10% post-earnings despite beating expectations, highlighting investor skepticism about AI infrastructure returns and stretched valuations. American Express missed Q4 expectations on net income per share.

Market Implications:

Investors face competing forces: whether Warsh's dovish stance will reignite tech valuations through lower rates, or if massive AI capital expenditures by hyperscalers represent overcommitment without proven returns. Put-call ratios remained bullish at 0.84, though this didn't prevent Thursday's selloff. Retreating precious metals suggest markets are betting on calmer Fed policy and reduced inflation concerns. The tech sector, which led 2025 gains, now faces intense valuation scrutiny as earnings season continues.