FX.co ★ US Futures Lower as New Fed Chair Announced

On Friday, US futures experienced a decline: S&P 500 contracts decreased by 0.4%, Nasdaq 100 slid 0.5%, and Dow Jones futures fell by 150 points. These losses continued after President Trump nominated Kevin Warsh to succeed Jerome Powell as the Federal Reserve Chair, a decision that aligned with previous indications. Warsh is perceived by the markets as a relatively hawkish choice, likely to advocate for lower interest rates, albeit not as aggressively as some other candidates considered. Meanwhile, investors were also evaluating the latest corporate updates. Apple saw a 0.5% drop in premarket trading, despite reporting strong quarterly results and increased iPhone sales. Visa's shares decreased by 1%, even with earnings and revenue surpassing expectations. Energy stocks took a hit, with ExxonMobil declining by 1.4% and Chevron falling by 0.3%. Additionally, American Express shares plummeted by 2.3% following an earnings shortfall. In contrast, Verizon shares rose by 2.4% after reporting unexpectedly strong results. Despite the downturn on Friday, the three major indices recorded substantial gains for January, with the S&P 500 rising by 1.8%, the Dow Jones increasing by 2.1%, and the Nasdaq advancing by 1.9%.