Stock market today: Dow, S&P 500, Nasdaq futures slide as Trump's Fed pick, Apple earnings take focus

NEW YORK – U.S. stock market futures pointed to a lower open on Thursday, signaling sustained pressure on Wall Street as investors navigated a complex landscape of corporate earnings and braced for a pivotal shift in monetary policy leadership. A mixed earnings report from Apple capped a turbulent week for Big Tech, while mounting anticipation over President Trump's choice to lead the Federal Reserve added a significant layer of uncertainty to market sentiment.

Futures contracts tied to the Dow Jones Industrial Average fell approximately 0.6%. The broader S&P 500 saw its futures decline by 0.5%, while the tech-heavy Nasdaq 100 futures slid more sharply, down about 0.7%, reflecting ongoing weakness in the technology sector. The moves follow a down session on Wednesday driven by a significant sell-off in software stocks, underscoring the market's fragile confidence.

The Powell Successor: A New Era for the Fed

The primary focus for investors has shifted squarely to Washington, where President Trump is expected to announce his nominee to succeed Federal Reserve Chair Jerome Powell on Friday morning. The decision comes just days after the central bank, under Powell's guidance, concluded its first policy meeting of 2026 by holding interest rates steady—a move that once again drew public criticism from the President.

This impending leadership change at the world's most influential central bank is creating significant anxiety. The outcome will have profound implications for the direction of monetary policy at a critical juncture for the U.S. economy.

• The Front-Runner: Former Fed Governor Kevin Warsh has emerged as the leading candidate, according to sources close to the administration. Warsh, who served at the Fed during the 2008 financial crisis, has been a vocal critic of the central bank's policies in recent years, often advocating for a more hawkish, rules-based approach. His appointment would likely be interpreted by markets as a signal of tighter monetary policy ahead.

• Other Contenders: Also on the shortlist are current Fed Governor Chris Waller; Rick Rieder, BlackRock's influential chief investment officer of global fixed income; and Kevin Hassett, former Chairman of the President's Council of Economic Advisers. Each candidate brings a different perspective, but the market's attention remains fixed on Warsh as the most probable, and potentially most disruptive, choice.

• Policy Divergence: The potential for a more hawkish Fed chair stands in stark contrast to current market expectations. According to the CME FedWatch Tool, traders are still pricing in a high probability of at least two quarter-point interest rate reductions by the end of the year. This disconnect between market pricing and a potential policy pivot is a key source of the current market unease.

A Divergent Tale in Tech Earnings

Adding to the cautious mood was the conclusion of a mixed earnings season for mega-cap technology companies, which have been the primary drivers of the market's recent performance. The results revealed a clear divergence between companies still benefiting from established product cycles and those facing scrutiny over massive investments in next-generation technology.

Apple (AAPL) provided a dose of positive news late Wednesday.

• Apple's Resilience: The iPhone maker's shares rose around 1% in post-market trading after it delivered fiscal first-quarter results that surpassed analyst estimates for both revenue and profit. The performance was powered by stronger-than-expected demand for its flagship iPhone, demonstrating the enduring strength of its consumer hardware ecosystem.

However, Apple's solid report was overshadowed by the fallout from Microsoft's (MSFT) disappointing update earlier in the week.

• Microsoft's Cloud Concerns: Shares of the software giant plummeted roughly 10% on Thursday, marking the stock's steepest single-day percentage drop since the pandemic-driven sell-off of March 2020. The slide, which weighed heavily on both the S&P 500 and Nasdaq, was triggered by signs of decelerating growth in the company's crucial Azure cloud computing business.

• Broader AI Scrutiny: Microsoft's results sparked a contagion of selling across the software and cloud sectors. Investors are increasingly reassessing the "AI trade," questioning the timeline for generating substantial revenue from artificial intelligence relative to the colossal capital expenditures required to build out the necessary infrastructure. The market is now demanding a clearer path to profitability from companies that have staked their futures on AI.

Elsewhere, there were pockets of strength driven by company-specific news. Data storage firm Sandisk (SNDK) saw its shares surge 11% in after-hours trading after it issued upbeat forward guidance, proving that strong fundamentals can still command investor attention.

Putting It in Perspective: What's Next

Despite the recent spike in volatility, the broader market picture for the year remains constructive. The S&P 500 and Nasdaq are both on track to finish the week with modest gains, though the Dow is tracking a slight weekly loss. More significantly, all three major indexes are pacing for gains in January. Historically, a positive return in the first month of the year, often referred to as the "January Barometer," has been viewed as a positive omen for full-year performance.

With the bulk of Big Tech earnings now in the rearview mirror, the market's attention will pivot to two key catalysts on Friday.

• Key Focus: The immediate and most significant event will be President Trump's announcement of his pick for Federal Reserve Chair. The market's reaction will depend entirely on the nominee's perceived policy leanings, with a Warsh selection likely to trigger further volatility in both equity and bond markets.

• Upcoming Earnings: A fresh slate of corporate reports will also command attention. The energy sector moves into the spotlight with quarterly results from giants Exxon Mobil (XOM) and Chevron (CVX) due before the opening bell. Rounding out a packed week of earnings are reports from financial services leader American Express (AXP) and telecommunications stalwart Verizon (VZ). These results will provide further insight into the health of the U.S. economy and the state of the consumer.