US EditionUS Stocks Fall as Gold Fever Breaks
Investor concerns about Fed independence and interest-rate policy led to broad stock declines and a sharp 11.4% drop in gold prices, impacting metals miners' shares.
- On Jan 30, U.S. stock indexes closed lower as investors reacted to President Donald Trump's nomination of Kevin Warsh and digested earnings and higher-than-expected producer prices.
- The nomination raised questions about whether the Fed will lose independence, as Warsh, if confirmed, would argue for scaling back its role and rethinking policy, market participants say.
- The Nasdaq composite fell 223.30 points, or 0.9%, to 23,461.82, while the Dow Jones Industrial Average slid 179.09 points, or 0.4%, to 48,892.47; Tesla rose 3.3%, helping to limit losses.
- Gold plunged 11.4% to settle at $4,745.10 per ounce after a yearlong rally that roughly doubled its price, hitting miners hard as Newmont fell 11.5% and Freeport-McMoRan dropped 7.5%.
- Whoever leads the Fed has a big influence on the economy and markets worldwide, and bringing inflation down to the Fed's 2% inflation goal may require keeping interest rates high, which market participants factor into expectations.
12 Articles
12 Articles
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US stocks fall, as investors fret over Trump's Fed nominee, earnings, inflation
Wall Street indexes closed lower Friday as investors reacted to President Trump's nomination of Kevin Warsh to lead the Federal Reserve, viewing it as a hawkish choice. Concerns over inflation, potential government shutdown, and mixed earnings reports also weighed on the market. The Dow, S&P 500, and Nasdaq all saw declines.
Stocks Fall as Investors Digest Fed Announcement
Financial markets churned on Friday as investors tried to figure out what President Trump's selection of a new leader of the Federal Reserve will mean for interest rates. The Dow fell 179.09 points, or 0.4%, to 48,892.47, closing the week down 0.4%. The S&P 500...
With the Fed nominee Warsh, the averted shutdown and the now available producer prices at the previous year's end sprint, the US stock exchanges are wobbly. There are significantly more price losers than winners. Rumours about Musk provide a surprise at Tesla.
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