U.S. stocks surrendered early gains on Friday, ending a volatile week with declines as uncertainty over the next Federal Reserve chair weighed on investor sentiment. The Nasdaq Composite fell below the flatline, while the S&P 500 dropped 0.1%. The Dow Jones Industrial Average nudged down 0.2%.
The reversal followed comments from President Donald Trump at a White House event. He expressed fresh reluctance to name Kevin Hassett as the next Fed chair, suggesting he preferred to keep Hassett in his current role as director of the National Economic Council. "I actually want to keep you where you are, if you want to know the truth," Trump told Hassett.
This fueled speculation that the central bank may not adopt as dovish a stance as some in the market had anticipated once Chair Jerome Powell steps down in May. The week was marked by geopolitical tensions involving Iran and a dispute over Greenland, alongside a criminal probe that risks the Federal Reserve's independence.
Investors now face a long weekend to digest these events, with U.S. stock and bond markets closed on Monday for Martin Luther King Jr. Day.
Elsewhere, shares of TSMC and Nvidia eyed further gains, supported in part by a U.S.-Taiwan trade deal promising a $250 billion boost to American chip and tech manufacturing. TSMC shares had risen Thursday following a strong quarterly report.
Friday's earnings highlights included smaller banks such as PNC Financial and Regions Financial. This followed a week of upbeat reports from major Wall Street firms. Shares of Goldman Sachs and Morgan Stanley rose Thursday after posting profit gains, lifting financial stocks.
Meanwhile, silver prices fell as the threat of U.S. tariffs eased. However, prices remained up more than 15% for the week, continuing a blistering rally for precious metals.