By US stocks opened lower on Friday, weighed down once again by struggling technology shares.
That weakness came even as investors appeared broadly comfortable with President Donald Trump’s decision to nominate Kevin Warsh as the next chair of the Federal Reserve.
The S&P 500 opened 0.3% down, the Nasdaq Composite slipped 0.4%, and the Dow Jones Industrial Average fell about 125 points, or 0.3% on Friday.
Despite the day’s pullback, the S&P 500 was still on track to finish January with a modest gain.
Friday opens with two competing signals that define the broader market mood.
President Trump officially nominated Kevin Warsh as the next Federal Reserve chair on Thursday, ending months of speculation that had rattled markets.
Warsh, 55, held the position of Fed governor from 2006 to 2011 before leaving for roles in banking and academia. Since then, he has been a fellow at Stanford’s Hoover Institution and an informal Trump adviser.
The nomination itself signals a more dovish Fed ahead, as Warsh is considered market-friendly and less confrontational than some alternatives.
Yet the bigger story is earnings season reality hitting a wall.
Apple reported record results with revenue of $143.8 billion, up 16% year-over-year, and all-time iPhone and Services records. That sounds bullish.
But Microsoft’s earnings reveal tells a different story about where valuations stand. The company’s results beat expectations, yet the stock plunged 10% immediately after.
Wall Street open: The broader crosscurrents
This tension between earnings growth and investor skepticism extends beyond Microsoft.
American Express missed Q4 expectations, missing on net income per share guidance.
Yet plenty of companies, from Apple’s record quarter to Nestle India and others reporting Friday, are hitting targets.
The problem is that tech stocks, which led the entire market higher through 2025, are facing intense scrutiny on valuations and return on investment.
The S&P 500 closed Thursday at 6,969 points, down slightly from Wednesday’s intraday high near 7,000.
That 7,000 level matters psychologically as it’s a resistance point that bulls are testing. Short-term support sits around 6,900.
Investor sentiment, as gauged by put-call ratios, remained bullish at 0.84, meaning more people were still betting on upside than downside. But that didn’t stop the Thursday selloff.
The market is in earnings season, which brings natural choppiness. More than 90 S&P 500 companies reported this week, and more continue on Friday.
The real calculation happening now
Here’s what traders and fund managers are actually calculating this morning.
Does Warsh as Fed chair mean lower rates sooner, which could reignite growth stocks and tech valuations?
Or does massive capex spending from Microsoft and other hyperscalers signal that companies have overcommitted to AI infrastructure without proven returns?
Precious metals retreating suggests the market is betting on the first scenario; calmer Fed policy means less inflation hedging needed. But the tech selloff suggests deep doubts remain.
The stock market’s answer to this question will set the tone for Friday trading.
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