1/30 US stock market review, gold and silver plummeted, new chairman officially announced, where is the US stock market heading?!

Donald Trump officially nominated Kevin Warsh to replace Powell as the next Fed chair. Warsh advocates a dual-track framework, trading a firm reduction in the balance sheet for lower benchmark rates. Rate cuts are positive for stock valuations, but balance sheet reduction drains liquidity, making the overall impact neutral to slightly negative. High-growth and small-cap stocks face pressure, while quality stocks with strong cash flows are more resilient. The bond

market will see short-end rates fall due to yield curve shifts, while long-end rates rise due to deficit concerns, benefiting short-term bonds and hurting long-term bonds.

Trump may gain substantial control over the Fed by filling board seats, pushing policies to relax bank regulations and have banks absorb Treasury bonds.

Gold plunged over 10% in a single day, falling below $5,000/oz; silver dropped over 30% intraday.

Reasons:

Markets expect Warsh’s appointment to boost dollar credibility.

Overcrowded gold/silver call options triggered gamma squeezes, forcing mechanical futures selling.

Extreme overbought conditions (RSI previously hit 90%) led to profit-taking.

Gold’s long-term drivers (central bank buying, geopolitics, hedging equities) remain intact, but silver’s speculative nature keeps risks high.

$Microsoft(MSFT.US) : Morgan Stanley sees MSFT as deeply undervalued. Azure growth slightly missed whisper numbers due to compute shortages, not weak demand. Commercial bookings surged YoY; Copilot paid seats hit 15M with 10x DAU growth.

$Apple(AAPL.US) AI unit faces talent drain as execs defect to Meta/Google.

Verizon posts record user growth.

SpaceX explores merger with $Tesla(TSLA.US) or xAI, lifting TSLA shares.

Next week’s highlights:

Macro: ISM Manufacturing PMI, ADP jobs, Friday’s NFP.

Earnings: Disney, AMD, Pfizer, Google, Lilly, Amazon.