[New York Stock Market] Falls on Warsh's Fed Chair Nomination... Gold and Silver Plunge

As former Federal Reserve (Fed) Governor Kevin Warsh was officially nominated by U.S. President Donald Trump as the next Fed Chair, the New York stock market closed broadly lower on January 30 (local time).

On this day, the Dow Jones Industrial Average ended trading at 48,892.47, down 179.09 points (0.36%) from the previous session. The S&P 500 Index closed at 6,939.03, down 29.98 points (0.43%), while the tech-heavy Nasdaq Composite dropped 225.30 points (0.94%) to finish at 23,461.82.

President Trump announced via his social media platform, Truth Social, that he had nominated former Fed Governor Warsh as the next Fed Chair. In his post, he stated, "I have known Kevin for a long time," adding, "I am confident he will be one of the great Fed Chairs, perhaps the best ever."

Warsh is considered one of the candidates with high credibility on Wall Street. His nomination has eased concerns over potential damage to the Fed's independence, especially compared to other candidates perceived as more closely aligned with Trump. As this perception spread, international gold and silver prices, which had been surging, sharply reversed and fell significantly.

Experts expect that if Warsh becomes the head of the Fed, there is a possibility of a short-term rate cut. However, in the medium to long term, he is expected to maintain the Fed's independence and continue a highly credible monetary policy.

By sector, technology stocks saw notable declines. Microsoft (MS) extended its losses from the previous session, falling another 0.81%. Meta dropped 2.95%, and Amazon also slipped 1.01%, reflecting a general weakness among major big tech stocks. In contrast, Apple, after initially weakening following its strong earnings announcement the previous day, rebounded late in the session to close up 0.46%.

Game-related stocks plunged after speculation emerged that Google's new artificial intelligence (AI) research project, "Project Genie," currently in development, could threaten existing game development solutions. Unity Software plummeted 24.22%, while Roblox fell 13.17%.

Meanwhile, international gold and silver prices tumbled, while the value of the dollar rebounded. On the New York Mercantile Exchange (COMEX), April gold futures settled at $4,745.10 per ounce, down 11.4% from the previous session. Spot silver also plunged 27.7% from the previous session to $83.99 per ounce, falling below the $100 mark.

The value of the dollar rose. The dollar index, which measures the value of the U.S. dollar against six major currencies on the ICE Futures Exchange, stood at 97.13 near the close of the New York stock market, up 0.9% from the previous session. Earlier this week, the dollar had fallen to its lowest level in four years as concerns mounted over potential threats to the Fed's independence and President Trump's comments about annexing Greenland, shaking confidence in dollar assets.