TLDR
- President Trump nominated Kevin Warsh as next Federal Reserve chair, with the dollar rising 0.8% on Friday following the announcement.
- January jobs report due Friday expects 65,000 jobs added with unemployment holding at 4.4%, as Fed watches labor market weakness.
- Alphabet and Amazon report earnings this week alongside AMD, Palantir, Disney, and multiple pharmaceutical companies.
- Gold dropped over 9% Friday while silver fell 28% in a precious metals sell-off analysts call a necessary correction.
- Major tech spending continues with Alphabet and Amazon expected to increase AI investment targets following Meta and Microsoft’s higher spending announcements.
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President Trump announced Friday that he will nominate Kevin Warsh to serve as the next chair of the Federal Reserve. The 55-year-old former Fed governor brings experience from his previous tenure at the central bank.
The dollar gained 0.8% following the nomination news. Stocks closed lower on Friday, with the Nasdaq down roughly 1% and the S&P 500 losing around 0.4%.
Warsh previously served as a Fed governor and resigned after the central bank moved toward quantitative easing following the financial crisis. His earlier tenure showed a preference for hawkish policy focused on inflation risks.
If confirmed by the Senate, Warsh will lead a Fed divided over interest rate policy. Multiple officials have voted against the central bank’s policy decisions at recent meetings.
The confirmation process faces potential delays from Senator Thom Tillis. The Republican from North Carolina said he will not vote for the next Fed chair until the Justice Department resolves its investigation into current Fed Chair Jerome Powell.
Warsh has recently called for lower interest rates and changes to the central bank. Deutsche Bank economists noted Warsh has “a strong pedigree to be chair of the Federal Reserve, with a background somewhat similar to Chair Powell.”
Labor Market Data Takes Center Stage
Friday’s jobs report for January expects the US economy added 65,000 jobs last month. The unemployment rate is forecast to hold at 4.4%.
December’s labor market showed signs of weakening with only 50,000 jobs added. That figure came in below economist expectations despite the unemployment rate edging lower.
Job growth was weaker in 2025 than 2024. Payroll employment increased by 584,000 in 2025 compared to 2 million additions in 2024, according to the Bureau of Labor Statistics.
Federal Reserve officials are watching the labor market closely. The central bank kept interest rates unchanged last week, citing elevated inflation risks even as hiring has slowed.
Consumer sentiment data from the University of Michigan will also be released. Readings on the manufacturing and services sector will provide additional economic insight.
Tech Earnings and AI Spending Continue
Alphabet and Amazon report earnings Wednesday and Thursday respectively. Both companies are expected to boost their capital expenditure estimates for AI investments.
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— Earnings Whispers (@eWhispers) January 30, 2026
Advanced Micro Devices reports Tuesday amid strong data center chip sales. Palantir will also report this week as investors continue watching AI-related stocks.
Meta ended the week up 8.8% after announcing higher spending targets. Microsoft dropped 7.6% on the week after its fourth quarter earnings report revealed increased AI spending plans.
The software sector faced selling pressure after results from SAP and ServiceNow. Investor concerns grew that software companies are losing ground to AI.
Disney reports Monday with investors focused on its direct-to-consumer segment. The streaming services business grew 8% in the prior quarter but missed expectations.
Pharmaceutical companies will also report this week. Eli Lilly, Novo Nordisk, Amgen, Merck, AbbVie and Novartis are scheduled to release earnings.
Gold sold off more than 9% on Friday in a turnaround for precious metals. Silver and platinum lost more than 28% and 19% respectively.
Oil prices rose roughly 7% over the past five days. Tensions around potential US military action in Iran and possible disruptions to the Strait of Hormuz drove the gains.
