US stocks gave up early morning gains on Friday due to uncertainty over the next Fed chair. Nasdaq and S&P 500 dropped, while Dow Jones nudged down. President Trump expressed reluctance to name Kevin Hassett as Fed chair, fueling speculation. Wall Street is regrouping after a tumultuous week marked by geopolitical tensions, with a long weekend ahead for investors. TSMC and Nvidia eyed gains following a US-Taiwan trade deal boosting chip manufacturing. The highlights on the earnings docket were PNC Financial and Regions Financial after a week of upbeat reports from Wall Street majors.
Homebuilder sentiment unexpectedly fell in January as affordability concerns persisted. The National Association of Home Builders/Wells Fargo Housing Market Index declined by two points to 37, the first drop in five months. Economists expected a slight uptick. Affordability issues are impacting lower and mid-range sectors, leading to price cuts and sales incentives by builders. Homebuilder stocks like D.R. Horton, Lennar, and PulteGroup slipped.
Stocks turned negative on Friday after Trump hinted at not picking Kevin Hassett as the next Fed Chair. The tech-heavy Nasdaq and S&P 500 dropped, along with Dow Jones. Trump expressed a desire to keep Hassett in his current role, causing speculation in the market. Hassett’s potential nomination was seen as a signal of a dovish Fed, impacting market sentiment.
State Street reported revenue expansion but missed earnings due to a repositioning charge, causing premarket stock decline. Revenue of $3.7 billion in Q4 exceeded Wall Street expectations, with net interest income up 7%. Assets under custody and management rose year over year. Net income declined 5% due to expenses, including a repositioning charge. Stock fell over 2% in premarket trading.
Morgan Stanley sees a potential 70% surge for ASML shares in a bullish case, driven by chipmakers’ increased spending for AI demand. ASML is positioned for significant growth if chipmakers ramp up investment. The bullish outlook reflects the potential for a surge in the stock’s value. ASML plays a critical role in the semiconductor industry and could benefit from increased demand for AI technologies.
Read more at Yahoo Finance: Dow, S&P 500, Nasdaq wobble as Trump wavers on Kevin Hassett as next Fed chair