U.S. stocks were choppy on Friday after shedding early gains as uncertainty surrounding the Federal Reserve’s leadership outlook unsettled markets. Investors weighed mixed signals from President Donald Trump on who may succeed Fed Chair Jerome Powell, injecting fresh volatility into an already eventful week.
The Nasdaq Composite slipped slightly into negative territory, while the S&P 500 hovered near the flatline. The Dow Jones Industrial Average also faded from earlier gains, as traders reassessed expectations for the future path of interest rates amid shifting political signals.
Market Movers:
- Taiwan Semiconductor (TSM) +0.2%: Shares edged higher as optimism around AI demand lingered following the company’s strong earnings report earlier this week. Investors remained focused on TSMC’s expanded capital spending plans and its central role in global chip supply chains.
- Nvidia (NVDA) +0.4%: The stock ticked higher after rebounding sharply in the prior session, supported by renewed confidence in sustained AI infrastructure spending. Nvidia continues to benefit from its position as a leading supplier of AI accelerators.
- PNC Financial Services (PNC) +1.6%: Shares rose after the regional bank reported quarterly results that topped expectations, helped by resilient net interest income. The results added to a solid earnings week for the banking sector.
- Regions Financial (RF) +1.9%: The stock climbed following upbeat earnings, as management pointed to stable credit quality and disciplined expense control. Investors welcomed signs of steady performance despite a higher-for-longer rate environment.
- Silver futures -2.1%: Prices pulled back after easing concerns over potential U.S. tariffs on critical minerals. The retreat followed a sharp rally earlier in the week that had pushed silver to multi-year highs.
Fed Chair Speculation Clouds Policy Outlook
Markets were cautious after President Trump showed hesitation about appointing Kevin Hassett as the next Fed chair, raising doubts over whether the central bank’s leadership will skew as dovish as investors had anticipated. Hassett had been viewed as a candidate likely to favor looser monetary policy once Powell’s term ends in May. The uncertainty reignited concerns about policy continuity at a time when markets are susceptible to interest rate expectations, particularly following recent volatility tied to inflation data and geopolitical risks.
Earnings Strength Offers Some Support
Despite the policy overhang, corporate earnings continued to provide a stabilizing force. Strong results earlier in the week from major Wall Street banks underscored resilience in trading activity and dealmaking, helping cushion downside pressure in financial stocks. Smaller regional banks added to the positive tone on Friday, suggesting that credit conditions remain manageable even as economic growth shows signs of cooling.
Geopolitics and Metals Pull Back
Meanwhile, precious metals fell as easing tariff threats lowered fears of supply disruptions. Silver remained sharply higher on the week despite Friday’s pullback, reflecting lingering demand for hard assets amid global uncertainty. Investors also continued to monitor geopolitical developments, including tensions involving Iran and renewed rhetoric surrounding U.S. trade policy, both of which contributed to heightened volatility throughout the week.
Looking Ahead
With markets closed Monday for the Martin Luther King Jr. Day holiday, investors will have time to digest a turbulent stretch marked by earnings, geopolitical headlines, and uncertainty over the Fed’s future leadership. Attention will turn next week to additional economic data and corporate results for clues on growth momentum. Until clarity emerges on the direction of monetary policy, markets may remain prone to sharp swings as investors recalibrate their expectations for rates, risk assets, and the broader economic outlook.