16.01.202619:40:28UTC+00US Stocks Wobble as Fed Chair Uncertainty Weigh

In afternoon trading, U.S. stocks trimmed earlier gains, with the three major indices remaining close to unchanged after President Trump suggested he might not appoint Kevin Hassett as the next Fed chair. Following his comments, Hassett's odds in the prediction markets took a notable downturn, increasing the possibility that former Fed Governor Kevin Warsh might become the leading candidate. Support for the market came from chip stocks, as companies like Taiwan Semiconductor, Nvidia, and Micron saw rises thanks to robust earnings, optimism driven by artificial intelligence, and a U.S.–Taiwan trade agreement promising $250 billion in investment towards American manufacturing. On the other hand, financials underperformed despite strong earnings, impacted by concerns over a proposed limit on credit card interest rates. Market volatility was further fueled by geopolitical tensions related to Iran and Greenland as a long holiday weekend approached. For the week, the S&P 500 dipped by 0.1%, the Nasdaq decreased by 0.4%, and the Dow was on track to close unchanged.