U.S. Stocks End Lower Amid Fed Chair Speculation and Rising Geopolitical Tensions
Wall Street ended lower on Friday, with the tech-heavy Nasdaq sliding 0.7% while the S&P 500 and Dow fell 0.4% and 0.3%. The choppy trading came after President Donald Trump hinted that National Economic Council Direct Kevin Hassett may not be his choice to succeed Federal Reserve Chair Jerome Powell, whose term expires in May. Following Trump?s remarks, prediction markets showed former Fed Govern Kevin Warsh gaining momentum as the new frontrunner.
Invest sentiment was further weighed down by rising geopolitical tensions, including Trump?s renewed threats to impose tariffs related to his Greenland plans, as well as on-going unrest in Venezuela, Iran, and the Russia-Ukraine conflict. In U.S. economic news, the Federal Reserve rep ted industrial production jumped 0.4% in December, matching November?s upwardly revised increase.
Most of the maj sect s ended showing only modest moves, contributing to the lackluster close by the broader markets. Commercial real estate stocks displayed considerable strength, as reflected by the 1.2% gain posted by the Dow Jones U.S. Real Estate Index. Semiconductor stocks extended the rally, driving the Philadelphia Semiconductor Index up by 1.2% to a recorded closing high. Steel stocks notable moved, with the NYSE Arca Steel Index falling by 1.2%.
Asia-Pacific stocks turned in another mixed performance. Japan's Nikkei 225 Index and China's Shanghai Composite Index both dipped by 0.3% while South Korea's Kospi advanced by 0.9%. Meanwhile, the major European markets all moved to the downside on the day while the French CAC 40 Index slid by 0.7%, the German DAX Index slipped by 0.2% and the U.K.'s FTSE 100 Index edged down by 0.1%.
In the bond market, treasuries have moved sharply lower over the course of the session. As a result, the yield on the benchmark ten-year note which moves opposite of its price, surged 7.1 bps to a four-month closing high of 4.23%.
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