{"id":68825,"date":"2026-01-16T15:17:47","date_gmt":"2026-01-16T15:17:47","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2026\/01\/16\/market-pares-gain-as-trump-wavers-on-hassett-as-fed-chair-pick\/"},"modified":"2026-01-16T15:17:47","modified_gmt":"2026-01-16T15:17:47","slug":"market-pares-gain-as-trump-wavers-on-hassett-as-fed-chair-pick","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2026\/01\/16\/market-pares-gain-as-trump-wavers-on-hassett-as-fed-chair-pick\/","title":{"rendered":"Market pares gain as Trump wavers on Hassett as Fed chair pick"},"content":{"rendered":"<div style=\"text-align:center\"><\/div><p> \n<br \/><br \/>\n<iframe loading=\"lazy\" title=\"Trump attack on Fed ripples through financial markets\" width=\"1080\" height=\"608\" src=\"https:\/\/www.youtube.com\/embed\/eSmnInDyyKs?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><br \/>\n<\/iframe><\/p>\n<p> United States stocks<\/p>\n<p>                         pared gains on Friday as traders mulled President Donald Trump\u2019s reluctance to nominating Kevin Hassett as <\/p>\n<p>                        Federal Reserve<\/p>\n<p>                         chair. <\/p>\n<p> The <\/p>\n<p>                        S&amp;P 500 Index<\/p>\n<p>                         advanced 0.1 per cent at 1:16 p.m. in New York, paring a gain of as much as 0.3 per cent. Meanwhile, the Nasdaq 100 Index was little changed, while a gauge of chipmakers gains 1.1 per cent. And the Russell 2000 Index rises 0.5 per cent, remaining on track to top the S&amp;P 500 for an 11th straight session. <\/p>\n<p> Hassett had been seen as a top contender to succeed current Fed Chair Jerome Powell. However, at a White House event, Trump said he would like for Hassett to remain as director of the National Economic Council. <\/p>\n<p> \u201cIf I had to pick between the two Kevin\u2019s, I\u2019d go with Hassett over Warsh,\u201d said Renaissance Macro Research\u2019s Neil Dutta. \u201cSo crushing Hassett only helps Warsh. We know that Kevin Warsh has been hawkish his entire career. He hates inflation even when it is running below the Fed\u2019s target.\u201d <\/p>\n<p> Dutta notes that Warsh would be an \u201cinteresting choice\u201d due to Trump\u2019s policy views. <\/p>\n<p> \u201cMarkets aren\u2019t stupid and know Warsh is only changing his views now to accommodate the President,\u201d said Dutta. \u201cThat\u2019s why the long end is rising.\u201d <\/p>\n<h2>Mid-Cap Mania<\/h2>\n<p> While it has been an up-and-down week for the S&amp;P 500 and Nasdaq 100, the Russell 2000 has continued to impress. The gauge has managed to beat the S&amp;P 500 over 10 straight sessions, its longest streak since 2008. <\/p>\n<p> \u201cThere\u2019s a new king of the hill to start 2026,\u201d said Brian Jacobsen, chief economic strategist at Annex Wealth Management. \u201cInstead of large\u2011cap growth, small\u2011cap value is taking the crown. After years of head\u2011fakes \u2014 moments when it seemed <\/p>\n<p>                        big\u2011cap tech\u2019s dominance<\/p>\n<p>                         might finally give way to broader market participation \u2014 <\/p>\n<p>                        the long\u2011anticipated \u2018Great Rotation\u2019<\/p>\n<p>                         may finally be taking shape.\u201d <\/p>\n<p><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/01\/qw_SP_500_Stumbles_After_Tech_Rally__Stocks_pared_gains_as_Trum.jpg?ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/01\/qw_SP_500_Stumbles_After_Tech_Rally__Stocks_pared_gains_as_Trum.jpg?ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/01\/qw_SP_500_Stumbles_After_Tech_Rally__Stocks_pared_gains_as_Trum.jpg?ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/01\/qw_SP_500_Stumbles_After_Tech_Rally__Stocks_pared_gains_as_Trum.jpg?ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/01\/qw_SP_500_Stumbles_After_Tech_Rally__Stocks_pared_gains_as_Trum.jpg?ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/01\/qw_SP_500_Stumbles_After_Tech_Rally__Stocks_pared_gains_as_Trum.jpg?ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/01\/qw_SP_500_Stumbles_After_Tech_Rally__Stocks_pared_gains_as_Trum.jpg?ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/01\/qw_SP_500_Stumbles_After_Tech_Rally__Stocks_pared_gains_as_Trum.jpg?ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/01\/qw_SP_500_Stumbles_After_Tech_Rally__Stocks_pared_gains_as_Trum.jpg?ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/01\/qw_SP_500_Stumbles_After_Tech_Rally__Stocks_pared_gains_as_Trum.jpg?ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/01\/qw_SP_500_Stumbles_After_Tech_Rally__Stocks_pared_gains_as_Trum.jpg?ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" fifu-data-src=\"https:\/\/i0.wp.com\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/01\/qw_SP_500_Stumbles_After_Tech_Rally__Stocks_pared_gains_as_Trum.jpg?ssl=1\" title=\"\" \/><\/p>\n<p> Mid-cap stocks have had a strong start to the year globally, according to XTB\u2019s Kathleen Brooks, who noted that there were several reasons why the firm liked the cohort, including tech risks. Brooks points to the performance of Sandisk Corp. and the semiconductor sector more broadly as a sign that the concentration risk is \u201creal\u201d for blue-chip stocks again this year. <\/p>\n<p> \u201cIf investor enthusiasm for the AI trade sours, then the S&amp;P 500 could sell off sharply,\u201d said Brooks. \u201cIn contrast, there is a broader group of top performers on the Russell 2000, for example, the top performing sectors include basic materials, energy and telecoms. Tech is only the fourth top performing sector.\u201d <\/p>\n<p> Brooks adds that the top performing stock on the Russell 2000 year-to-date through Thursday\u2019s close \u2014 pharmaceutical firm Erasca Inc. \u2014 has potential to be resilient should the tech trade unwind. <\/p>\n<h2>Regional Bank Earnings<\/h2>\n<p> With <\/p>\n<p>                        big bank<\/p>\n<p>                         earnings out of the way, other names in the space took centre stage to report. Regional bank PNC Financial Services Group Inc. advanced 4.2 per cent after reporting an increase in fourth-quarter revenue. The metric <\/p>\n<p>                        beat consensus expectations<\/p>\n<p>                         as financing and dealmaking by middle-market customers accelerated. <\/p>\n<p> Meanwhile, Regions Financial Corp. dropped after earnings per share and total loans in the fourth quarter missed the average analyst estimate. The regional bank also received a downgrade at Wells Fargo following the print. Shares in State Street Corp. also declined following results. The trust bank told investors it sees year expenses being up three per cent to four per cent, and also expects net interest income to be up low-single-digits percentage. <\/p>\n<p> Other notable movers include JB Hunt Transport Services Inc., which fell after fourth-quarter revenue missed estimates, extending the ongoing freight slump. <\/p>\n<p> Looking ahead to next week, Wells Fargo Investment Institute\u2019s Doug Beath said investors will have \u201cmore time to digest the significant geopolitical events and policy announcements from this past week and may not be so sanguine, which could bring about more volatility,\u201d he said. <\/p>\n<ul class=\"related_links\">\n<li>\u2018Sell America\u2019 trade seen giving Canadian stocks an edge in 2026<\/li>\n<li>Bank balance sheets benefiting from falling interest rates<\/li>\n<\/ul>\n<p> Bloomberg.com <\/p>\n\n<br \/>Market pares gain as Trump wavers on Hassett as Fed chair pick<\/a><br \/>\n<br \/>2026-01-16 15:17:47<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>United States stocks pared gains on Friday as traders mulled President Donald Trump\u2019s reluctance to nominating Kevin Hassett as Federal Reserve chair. The S&amp;P 500 Index advanced 0.1 per cent&#8230;<\/p>\n","protected":false},"author":2,"featured_media":68826,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2026\/01\/0117-mg-stocks.jpg","fifu_image_alt":"","footnotes":""},"categories":[31],"tags":[],"class_list":["post-68825","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/68825","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=68825"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/68825\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/68826"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=68825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=68825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=68825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}