**Market Brief: Wall Street Slides on Fed Nomination & Inflation Angst** **Indices Recap (Friday Close)** * **Dow Jones:** 48,886.44 (▼ 0.38%) * **S&P 500:** 6,939.03 (▼ 0.43%) * **Nasdaq:** 23,461.82 (▼ 0.94%) **Executive Summary** U.S. equities finished the week in the red as traders processed President Trump’s nomination of **Kevin Warsh** to replace Jerome Powell as Federal Reserve Chair. The announcement, coupled with hotter-than-expected inflation data and renewed government shutdown fears, triggered a broad risk-off session. **The Warsh Effect** Markets initially reacted negatively to the Warsh nomination, interpreting the choice as potentially "hawkish." While Warsh is a former Fed Governor with deep institutional knowledge, investors are grappling with uncertainty regarding his stance on interest rates and central bank independence. This anxiety overshadowed the broader expectation that a Trump nominee might favor easier monetary policy. **Inflation & Shutdown Jitters** Sentiment was further dampened by the December **Producer Price Index (PPI)**, which rose **0.5%**—surpassing economist forecasts of 0.3%. The data reignited concerns that inflation remains sticky, potentially complicating the Fed's rate-cut path. Simultaneously, stalled negotiations in the Senate raised the specter of a partial government shutdown, adding another layer of volatility. **Sector & Asset Moves** * **Commodities Crash:** Gold and silver faced historic sell-offs. Silver plummeted over **13%** in intraday trading, while gold dropped nearly **5%**, as the dollar strengthened and yields ticked higher. * **Tech Mixed:** The Nasdaq led declines, weighed down by weakness in growth stocks. **Microsoft** continued its slide following earnings disappointment earlier in the week, while **Apple** managed a modest rebound on favorable quarterly results. * **Treasuries:** The 10-year Treasury yield edged up to **4.25%**, reflecting the dual pressures of sticky inflation and shifting Fed expectations. **Outlook** Investors enter the weekend with heightened caution. The focus now shifts to the Senate confirmation process for Warsh and upcoming economic reports that will clarify whether the recent inflation uptick is a trend or an anomaly.