US Equities Hold Firm While Precious Metals Face Extreme Volatility Following Trump's Nomination of Kevin Warsh for Fed Chair

On Tuesday, February 3, 2026, the United States financial landscape presented a starkly divided performance. While major equity indices maintained a sense of equilibrium ahead of critical corporate earnings, the precious metals sector—specifically gold and silver—endured a period of intense price swings. This sudden shift in market sentiment was largely attributed to President Donald Trump’s decision to nominate Kevin Warsh as the next Chairman of the Federal Reserve. The move has significantly heightened investor expectations for a more hawkish monetary policy stance in the coming years.

US stock futures, particularly those tracking the S&P 500 and the Nasdaq, demonstrated notable resilience despite the surrounding uncertainty. The S&P 500 climbed to the 7,000-point milestone, marking a 0.33% increase as approximately 25% of the index's constituent companies prepared to disclose their latest financial results. The technology sector led the pre-market charge, with shares of Teradyne surging by 23.8% following an optimistic outlook. Meanwhile, Alphabet concluded the February 2, 2026, trading session at an all-time high of $343.80, signaling continued investor confidence in big tech.

Palantir also contributed to the positive momentum in equities, buoyed by robust performance in the fourth quarter of 2025 and a promising 2026 revenue forecast ranging between $7.182 billion and $7.198 billion. Teradyne’s Chief Executive Officer, Greg Smith, reinforced this optimistic narrative by confirming expectations for broad-based growth across all business segments throughout 2026. Smith specifically highlighted the significant momentum within the computing division, which continues to benefit from massive ongoing investments in artificial intelligence infrastructure.

In sharp contrast to the stability of the stock market, the precious metals sector underwent a dramatic correction. Gold, which had previously soared to a peak exceeding $5,580 per ounce on January 29, retreated to approximately $4,545 by February 2. Silver experienced an even more turbulent trajectory; after hitting a record high of nearly $121.64 per ounce on January 29, it plummeted by nearly a third to around $72. However, a minor recovery was observed on February 3, with silver prices rebounding to $85.98 per ounce. Christopher Forbes, an analyst at CMC Markets, described this downward pressure on gold as a "washout of leverage" that had accumulated within the financial system.

The strengthening of the US dollar following the nomination of Warsh—viewed by many as a "hawkish" figure—further pressured commodities. This volatility is occurring against a backdrop of domestic economic uncertainty, exacerbated by a partial federal government shutdown. This administrative halt has delayed the release of vital economic indicators, including the January employment report originally scheduled for February 6. Consequently, market analysts are currently operating without updated data regarding the health of the labor market, adding another layer of complexity to the current trading environment.

Despite these challenges, consumer spending has shown some resilience, even as the Conference Board’s Consumer Confidence Index dropped to 84.5 points in January—its lowest level since May 2014. The nomination of Kevin Warsh, who previously served on the Federal Reserve Board of Governors from 2006 to 2011, signals a potential departure from the "Fed easing" expectations that dominated January. While major institutions like Deutsche Bank and JPMorgan maintain bullish long-term targets for gold at $6,000 and $6,300 per ounce respectively, the current turbulence reflects the market's visceral reaction to the anticipated shift in central bank leadership.