NEW YORK, Feb 1, 2026, 12:05 EST — Market closed
- The Dow slipped 0.4% to close at 48,892.47 on Friday, while the S&P 500 and Nasdaq also posted declines.
- Trump’s pick for Fed chair and a stronger-than-expected producer-inflation report pushed rate expectations higher.
- ISM manufacturing data drops Monday, with the January U.S. jobs report due Friday.
Wall Street’s Dow Jones Industrial Average closed Friday down 179.09 points, or 0.4%, at 48,892.47 as traders wrestled with the implications of Donald Trump’s latest pick to head the Federal Reserve. U.S. markets will be closed on Sunday.
Trump announced he plans to nominate Kevin Warsh to replace Jerome Powell once Powell’s term as chair expires in May. However, the confirmation might stall after Thom Tillis declared he would block it until the Justice Department finishes its inquiry into Powell.
Friday saw a hotter-than-expected producer price index (PPI), a key gauge of prices received by U.S. producers. The final demand index jumped 0.5% in December, well above forecasts. “This report validates the pivot of the Fed away from labor market risks back toward price stability,” said Carl Weinberg, chief economist at High Frequency Economics. The U.S. Labor Department warned that another government shutdown could disrupt upcoming data releases, including the January jobs report due next Friday and the CPI report a week later. Reuters
The S&P 500 slipped 0.43% on Friday, with the Nasdaq Composite down 0.94%. The Russell 2000, sensitive to interest rates, dropped 1.6%, underperforming larger caps despite a strong January. “Markets are calibrating to Trump’s pick of Kevin Warsh … and the outlook for monetary policy,” said Michael Hans, chief investment officer at Citizens Wealth. Angelo Kourkafas of Edward Jones highlighted “mixed tech earnings” alongside “lingering inflation pressure.” Apple shares finished up 0.4%. Reuters
American Express and Visa losses dragged the Dow down nearly 200 points on Friday, with 3M, UnitedHealth Group, and Nike also adding pressure, MarketWatch calculated. Because the Dow is price-weighted, a $1 move in any stock shifts the index by about 6.16 points.
The Dow, a price-weighted index of 30 U.S. blue-chip stocks, leaves out transportation and utilities, S&P Dow Jones Indices notes. This setup lets high-priced shares carry more weight, especially when the market shifts its view on rates.
Verizon surged nearly 12% on the day, with Chevron and Coca-Cola also pushing higher. On the flip side, Visa dropped around 3%, while 3M and UnitedHealth each fell close to 2%.
The factors that rattled stocks on Friday haven’t gone away. If Treasury yields continue to climb amid stubborn inflation, or if the Fed’s transition drags out in Congress, the Dow may remain volatile.
The calendar flips fast: Monday, Feb. 2, brings the Institute for Supply Management manufacturing PMI, a key gauge of factory output. Then come earnings reports from Alphabet, Amazon, Advanced Micro Devices, The Walt Disney Company, and Palantir. The week wraps with the January U.S. jobs report on Friday, Feb. 6.
