Stock Futures Decline Following Warsh Named Fed Chair

Stock futures fell Friday, a day after the S&P 500 posted a second consecutive losing session, but trimmed declines after President Donald Trump nominated Kevin Warsh to succeed Jerome Powell as Federal Reserve chair.

Futures for the Dow Jones Industrials stumbled $221.00 points, or 0.4%, to 48,949.

Futures for the broader index lost 33.50 points, or 0.5%, at 6,959.25.

Futures for the NASDAQ slid $153.50 points, or 0.6%, to 25,845.50.

Warsh’s selection was likely to ease concern about Fed independence because of his experience as a Fed governor and strong stance at times against inflation.

While he is likely to push for lower rates in short term as Trump wants, the financial markets view him as someone who wouldn’t always follow the president’s direction and maintain credibility for monetary policy.

Apple shares inched lower even after the company beat fiscal first-quarter earnings and revenue expectations, aided by a significant surge in iPhone sales.

Data storage stock Sandisk popped 19% on the back of strong guidance. KLA Corp lost more than 8% after guidance for non-GAAP gross margin in the fiscal third quarter came in light.

Markets in Japan eased off 0.1% Friday, while the Hang Seng in Hong Kong declined 2.1%.

Oil prices dipped 19 cents to $65.23 U.S. a barrel.

Gold prices withered $244.80 to $5,073.80 U.S an ounce.