Stocks Settle Lower on Weakness in Chip Stocks and Miners

The S&P 500, Dow, and Nasdaq 100 all closed down on Friday amid declines in semiconductor and mining stocks.

Jan. 30, 2026 at 6:07pm

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The S&P 500 Index, Dow Jones Industrials Index, and Nasdaq 100 Index all closed lower on Friday, with the Nasdaq 100 falling the most at -1.28%. Stocks were pressured by weakness in chip makers and mining companies, as well as hawkish comments from Federal Reserve officials and a rise in producer prices. The 10-year Treasury yield also rose to a 1-week high on news that President Trump will nominate Kevin Warsh, a more hawkish candidate, as the next Fed Chair.

Why it matters

The declines in chip and mining stocks reflect broader concerns about the economic outlook, as these sectors are sensitive to global growth and trade conditions. The rise in Treasury yields and hawkish Fed commentary also suggest that the central bank may need to continue raising interest rates to combat inflation, which could weigh on equity markets. Investors will be closely watching the upcoming earnings season and any further developments around the Fed leadership transition.

The details

Chip makers and AI infrastructure stocks were among the biggest decliners on Friday, with KLA Corp, Western Digital, Seagate Technology, and Advanced Micro Devices all closing down more than 5%. Mining stocks also sold off sharply, with Coeur Mining, Hecla Mining, Barrick Mining, and Newmont Mining all closing down over 10%, as gold and silver prices plunged. The weakness in these sectors contributed to the broader market declines.

  • On Friday, the S&P 500 Index closed down -0.43%, the Dow Jones Industrials Index closed down -0.36%, and the Nasdaq 100 Index closed down -1.28%.
  • March E-mini S&P futures fell -0.43%, and March E-mini Nasdaq futures fell -1.35%.

The players

Kevin Warsh

A former Federal Reserve Governor from 2006-2011 who is seen as a more hawkish candidate for the next Fed Chair.

Jerome Powell

The current Federal Reserve Chair whose term ends in May.

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What they’re saying

“With inflation above target and the risks to the outlook evenly balanced, I believe it would be unadvisable to lower the fed funds rate into accommodative territory at this time.”

— Alberto Musalem, St. Louis Fed President (Barchart)

“Monetary policy is still restricting economic activity, and economic data make it clear to me further easing is needed.”

— Christopher Waller, Fed Governor (Barchart)

What’s next

The markets are discounting a 17% chance for a -25 bp rate cut at the next policy meeting on March 17-18, so investors will be closely watching for any further signals from the Federal Reserve about the path of monetary policy.

The takeaway

Friday's market declines highlight the ongoing concerns about the economic outlook, with weakness in key sectors like semiconductors and mining weighing on the broader indexes. The mixed signals from Federal Reserve officials and the potential for a more hawkish Fed leadership transition add further uncertainty for investors as they navigate the current market environment.