2026.1.30 US Market Close | Stocks drop amid hawkish Fed chair pick and Big Tech earnings anxiety

US markets closed lower across all major indices, weighed down by the nomination of a hawkish new Fed Chair and growing concerns over Big Tech earnings. Stronger-than-expected economic data also pressured the market, pushing back expectations for interest rate cuts. - Dow Jones: Down 0.36% - Weighed down by policy uncertainty. - S&P 500: Down 0.43% - Impacted by the hawkish Fed Chair nomination and rising inflation concerns. - Nasdaq: Down 0.94% - Tech stocks were heavily pressured by disappointing Big Tech earnings and fears of further rate hikes. - New Fed Chair Nomination and Monetary Policy Uncertainty: The nomination of the hawkish Kevin Warsh as the next Fed Chair heightened fears of monetary tightening. Consequently, the 10-year Treasury yield rose to 4.24%, and gold futures plunged by over 7.7%. - Spreading Disappointment in Big Tech Earnings: Microsoft weakened due to concerns over massive AI investment costs, while Apple's gains were limited despite strong results, as the company warned of future margin pressures, failing to meet market expectations. - Stronger-Than-Expected Economic Data: The January Producer Price Index (PPI) came in higher than anticipated, and the Chicago Purchasing Managers' Index (PMI) registered 54.0, dampening hopes for an early rate cut. - Microsoft (MSFT): Continued its decline as concerns mounted over significant capital expenditures (approx. $37.5 billion) for building out its AI infrastructure. - Apple (AAPL): Rose 0.5% - Despite strong earnings, including a 38% surge in China sales, the stock's upside was limited by concerns over future margin pressure. - Palantir (PLTR): Fell over 2% - Ahead of its earnings release, investor sentiment was torn between optimism over a reported 121% surge in its US commercial revenue and concerns about government contract risks.