• Major indexes fell as investors digested Trump’s nomination of Kevin Warsh to success Fed Chairman Powell in May.
• Verizon gained ground on robust subscriber growth and an bullish outlook for 2026, while American Express fell despite dwindling revenues.
• Silver fell more than 17% in a dramatic turnaround from record highs, prompting profit-taking in the precious metals.
• Despite Friday’s decline, all three major averages posted solid gains in January, capping off a robust start to 2026.
The Dow Jones Industrial Average (DJIA) fell about 200 points on Friday, down 0.2%, as investors weighed President Donald Trump’s nomination of former Federal Reserve (Fed) Governor Kevin Warsh to succeed Jerome Powell as Fed chairman when his term expires in May. The S&P 500 also fell 0.2% and the Nasdaq Composite fell 0.3%. Despite Friday’s pullback, all three major averages ended January with solid gains: the Dow gained 2.1%, the S&P 500 rose 1.8% and the Nasdaq gained 1.9% for the month.
Warsh’s nomination ends months of Fed speculation
On Friday morning, Trump announced his selection of Kevin Warsh to lead the Federal Reserve, ending months of speculation about who would replace Powell. Warsh, 55, previously served on the Fed’s Board of Governors from 2006 to 2011 and was a top adviser during the 2008 financial crisis. Markets see Warsh as a more hawkish candidate who will support lower interest rates, although less aggressively than other potential candidates. The nomination faces a hard Senate confirmation process, with Republican Sen. Thom Tillis threatening to block any Fed nominees pending the outcome of the Justice Department’s investigation into Powell.
Verizon records record subscriber growth
Among Dow’s components, the clear standout is Verizon Communications Inc. (VZ) rose 6.6% after reporting its highest quarterly subscriber gain since 2019. The telecommunications giant added 616,000 monthly bill-paying wireless subscribers in the fourth quarter, far exceeding expectations of 417,250. New CEO Dan Schulman’s aggressive promotional strategy, which includes offers such as four $100-a-month phone lines, has resonated with customers doing Christmas shopping. Verizon’s 2026 outlook also impressed, with the company forecasting adjusted earnings per share of $4.90 to $4.95, above the consensus estimate of $4.76.
Financial stocks fall despite mixed earnings
American Express Company (AXP) fell 3.1% after reporting fourth-quarter results that were roughly in line with expectations but disappointed some investors. The payments company reported earnings per share of $3.53 on revenue of $18.98 billion, up 10.5% year-over-year. While the company raised its 2026 forecast above consensus and announced a 16% dividend escalate, higher provisions for loan losses and rising costs weighed on sentiment. Visa Inc. (V) also fell 2.3% despite beating revenue and profit estimates, while International Business Machines (IBM) fell 1.6%, giving back some of Thursday’s 5% post-earnings gain.
Oil giants beat estimates due to production records
Chevron Corporation (CVX) rose 0.5% after reporting better-than-expected quarterly results, even as lower oil prices put pressure on the energy sector. The company reported record levels of production in the Permian Basin and offshore Guyana. ExxonMobil Corporation (XOM) also beat earnings estimates, but fell 0.8% as both oil majors grappled with a global supply glut that sent oil prices tumbling. Both companies stressed cost discipline and the ability to maintain profitability even as oil prices fell to $35 a barrel, although annual profits fell from the highest levels recorded in previous years.
Apple declines despite frail iPhone quarter
Apple Inc. (AAPL) fell 1.2% on Friday despite reporting fiscal first-quarter results that thwarted expectations. The tech giant reported revenue of $143.8 billion, up 16% year-over-year, on the back of iPhone sales that rose 23% to $85.27 billion. CEO Tim Cook called demand for the iPhone 17 series “simply staggering,” and the company set all-time revenue records across all geographic segments. The number of installed Apple devices now exceeds 2.5 billion, up from 2.35 billion a year ago. However, some investors opted to take profits after the stock’s robust run, while the broader technology sector faced headwinds after Microsoft Corporation (MSFT) fell 10% on Thursday on disappointing cloud outlooks.
Silver falls sharply in dramatic turnaround from record highs
Silver prices fell as much as 21% on Friday, moving away from all-time highs in what analysts described as the metal’s biggest one-day decline in 14 years. The price of the white metal rose to a record high of $122 an ounce on Thursday before aggressive profit-taking triggered broad declines in precious metals markets. Despite the pointed correction, silver remained on track, posting a monthly gain of more than 30%, supported by heightened geopolitical uncertainty, a weakened dollar and tight physical market conditions. The iShares Silver Trust (SLV) saw huge volumes as retail investors who had gathered for the rally rushed to the exits. Gold also retreated from recent record highs above $5,500 an ounce.
Dow Jones daily chart
Silver FAQs
Silver is a precious metal that investors like to trade. Historically, it has been used as a store of value and a medium of exchange. Although less popular than gold, investors may turn to silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during periods of high inflation. Investors can buy physical silver in coins or bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can fluctuate due to many factors. Geopolitical instability or fear of a deep recession may push silver prices higher due to its safe-haven status, although to a lesser extent than gold. As a non-yielding asset, silver tends to rise at lower interest rates. Its movements also depend on the behavior of the US dollar (USD) when the asset is priced in dollars (XAG/USD). A robust dollar tends to keep the price of silver at bay, while a weaker dollar will likely push prices higher. Other factors such as investment demand, mining supply – there is much more silver than gold – and recycling rates can also influence prices.
Silver is widely used in industry, especially in sectors such as electronics and solar energy, because it has one of the highest electrical conductivities of all metals – greater than copper and gold. An escalate in demand can escalate prices, while a decrease usually lowers them. The dynamics of the economies of the United States, China and India can also contribute to price fluctuations: in the case of the United States and especially China, huge industrial sectors operate silver in various processes; in India, consumer demand for precious metals for jewelry production also plays a key role in pricing.
Silver prices usually follow the movements of gold. When gold prices rise, silver tends to follow suit because their status as safe-haven assets is similar. The gold-to-silver ratio, which shows the number of ounces of silver needed to equal the value of one ounce of gold, can aid determine the relative valuation of the two metals. Some investors may view a high ratio as an indicator that silver is undervalued or gold is overvalued. On the contrary, a low ratio may suggest that gold is undervalued relative to silver.
