Traders work on the floor of the New York Stock Exchange.
NYSE
The S&P 500 fell on Friday after President Donald Trump suggested that National Economic Council Director Kevin Hassett might not be chosen as the next Federal Reserve chair.
The broad market index declined 0.2%, while the Dow Jones Industrial Average fell 140 points, or 0.3%. The Nasdaq Composite dipped 0.3%.
Stocks moved a bit lower after Trump delivered remarks in the White House Friday, in which he said he’d rather have Hassett stay in his role as top economic advisor.
“I see Kevin’s in the audience, and I just want to thank you. You were fantastic on television today,” Trump said. “I actually want to keep you where you are, if you want to know the truth.”
Hassett had been seen as a frontrunner to replace Fed Chair Jerome Powell, whose term expires in May, but prediction markets showed former Fed Governor Kevin Warsh moved ahead in the race following the president’s remarks.
The major averages are coming off a winning session thanks to gains in chip stocks. Taiwan Semiconductor led the advance after a blowout fourth-quarter report. Further, the U.S. and Taiwan reached a trade agreement in which Taiwanese chip and tech companies will invest at least $250 billion in production capacity in America.
Investors are preparing to close out a hectic week. They’ve been grappling with a slate of headlines out of Washington, running the gamut from heightened geopolitical risk in Iran and Greenland to worries over threats to the Federal Reserve’s independence.
For the week, the S&P 500 was headed for a 0.5% fall, while the 30-stock Dow was tracking for a 0.3% drop. The Nasdaq was down 0.8% on the week.