Stocks headed lower on Friday as technology shares continued to be in a funk, even as investors largely approved of President Donald
Trump’s pick of Kevin Warsh to lead the Federal Reserve. The S&P 500 looked to squeak out a January gain, despite Friday’s losses.
The Dow Jones Industrials cratered 418 points to pause for lunch during the week’s last session at 48.656.05.
The much-broader index skidded 27.45 points to 6,941.56.
The NASDAQ lost 108.43 points to 22,574.12.
Apple shares inched lower even after the company beat fiscal first-quarter earnings and revenue expectations, aided by a significant surge in iPhone sales. Data storage stock Sandisk popped 12% on the back of strong guidance. KLA Corp lost 13% after guidance for non-GAAP gross margin in the fiscal third quarter came in light.
Despite Friday’s weakness, the major averages were headed for a positive month. The S&P 500, Dow Jones Industrial Average and NASDAQ were all up more than 1% for January.
Warsh’s selection was likely to ease concern about Fed independence because of his experience as a Fed governor and strong stance at times against inflation.
While he is likely to push for lower rates in short term as Trump wants, the financial markets view him as someone who wouldn’t always follow the president’s direction and maintain credibility for monetary policy.
Prices for the 10-year Treasury dipped a bit Friday, raising yields to 4.25% from Thursday’s 4.24%. Treasury prices and yields move in opposite directions.
Oil prices tacked on 65 cents to $66.07 U.S. a barrel.
Gold prices staggered $318.10 to $5,000.30 U.S. an ounce.
