US Stocks Decline Amid Fed Leadership Uncertainty

NEW YORK, Jan 17 (Bernama-Xinhua) -- United States (US) stocks ended slightly lower on Friday, as the market grappled with heightened volatility in the bond market and renewed uncertainty regarding the future leadership of the Federal Reserve, Xinhua reported.

The Dow Jones Industrial Average declined 83.11 points, or 0.17 per cent, to 49,359.33. The S&P 500 slipped 4.46 points, or 0.06 per cent, to 6,940.01, and the Nasdaq Composite Index lost 14.63 points, or 0.06 per cent, to 23,515.39.

Performance across the 11 primary S&P 500 sectors was divided. Real estate and industrials were the top performers, advancing 1.2 per cent and 0.65 per cent, respectively. Healthcare and communication services sectors led the declines, falling 0.84 per cent and 0.72 per cent.

Intraday market pressure intensified following remarks by US President Donald Trump suggesting that National Economic Council Director Kevin Hassett, previously considered a top contender for the Fed chairmanship, might remain in his current role instead of succeeding Jerome Powell. This potential shift in the expected succession timeline triggered a dip across the three major benchmarks.

The announcement also sent ripples through the bond market. The yield on the benchmark 10-year US Treasury notes climbed to 4.23 per cent, which marks the highest level since early September, reflecting investor anxiety over central bank independence and the implications of recent mixed inflation data.

Despite the volatility, some market analysts noted a degree of underlying resilience. Analysts at ING pointed out that fears of a radical shift in Fed policy have yet to materialise, noting that even Trump-appointed governors have not pushed for aggressive interest rate cuts. Investors are also closely watching a legal battle involving Fed Governor Lisa Cook, which is scheduled to go before the US Supreme Court next week.

In corporate news, the first week of the fourth quarter earnings season concluded for regional lenders with divergent results. PNC Financial saw its shares climb 3.79 per cent on the back of strong advisory fees and robust dealmaking activity. Conversely, Regions Financial fell 2.63 per cent after the bank issued disappointing guidance and reported quarterly results that missed analyst expectations.

-- BERNAMA-XINHUA