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Indexes down: Dow 0.2%, S&P 500 0.2%, Nasdaq 0.3%

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Russell 2000 down 0.3%

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Apple ( AAPL ) shares fall after quarterly results

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Gold and silver miners fall tracking metal prices

(Updates to market open)

By Pranav Kashyap and Twesha Dikshit

Jan 30 (Reuters) - U.S. stocks fell on Friday after

President Donald Trump nominated former Fed Governor Kevin Warsh

to lead the U.S. central bank, a decision that many investors

view as a hawkish pick.

Investors expect Warsh to support lower interest rates but

stop well short ‌of a more aggressive monetary policy easing

associated with some of the other potential nominees. His

appointment needs Senate confirmation.

Meanwhile, producer prices increased more than expected in

December, suggesting inflation could pick ​up in the months

ahead.

"There is a general sense of hawkishness in the market

following the emergence of Kevin Warsh's name. He ‍is viewed as

less dovish than many of the other candidates and is expected to

favor fewer ⁠rate cuts," said Ipek Ozkardeskaya, senior ⁠analyst

at Swissquote Bank.

"From a policy perspective, the composition of the Fed's

leadership should not, in theory, override its mandate."

Investors continued to bet on at least two 25 basis-points

interest-rate ‌cuts by the end of 2026. The central bank held

rates steady ​earlier this week, pausing an easing cycle which

has supported U.S. stocks.

Futures slid overnight, while the dollar and Treasury yields

climbed on Thursday following media reports that the White House

was preparing for Trump to nominate Warsh as ⁠the next Fed chair.

At 09:39 a.m. the Dow Jones Industrial ‍Average fell

113.32 points, ​or 0.23%, to 48,958.24, the S&P 500 lost

14.11 points, or 0.20%, to 6,954.90 and the Nasdaq Composite

lost 61.97 points, or 0.27%, to 23,621.32.

The small-cap Russell 2000 index , which is

more sensitive to interest rates, fell 0.3%.

The CBOE volatility ‍index - Wall Street's "fear gauge" -

gained 0.32 points to 17.2.

SMALL-CAPS OUTPERFORM IN JANUARY

With corporate earnings underway, Microsoft ( MSFT ) logged

its worst day since March 2020 after its cloud revenue failed to

impress, triggering a broad tech selloff on Wall Street on

Thursday. Its shares dipped 0.1%.

Apple ( AAPL ) fell 1.8%. The iPhone maker forecast

higher-than-expected revenue growth of up to 16% for the March

quarter, but warned that rising memory chip prices had started

to pressure profitability.

Wall Street has largely rebounded from bouts of selling

pressure stemming from Trump's plans to acquire Greenland and a

mixed batch of quarterly ​earnings.

Of late, signs ‍of AI trade getting crowded have sparked a

rotation into small-caps and other overlooked corners of the

market.

The Russell 2000 index of small caps stocks is on

track to end the month up nearly 7%, while the S&P 600

is headed ​for a gain of more than 6%. That compares with rises

of a little more than 1.8% each for the S&P 500 and the Nasdaq.

The Dow, meanwhile, is poised to notch a ninth straight

monthly advance, its longest winning streak since 2018.

Of the 133 companies in the S&P 500 that have reported so

far, about 74% beat analysts' expectations, LSEG data on

Thursday showed.

SanDisk shares surged almost 20% after better-than-expected

third-quarter forecast as AI fuels storage demand. KLA Corp ( KLAC )

beat Wall Street expectations for second-quarter profit

and revenue but shares dropped 7.7%.

Verizon shares gained 7% after the wireless carrier

forecast upbeat annual profit. ​American Express forecast

annual profit largely above Wall Street expectations, but its

shares slipped 2.5%.

Chevron ( CVX ) shares rose 1% after the oil major posted

fourth-quarter profit above expectations, while Exxon Mobil ( XOM )

shares dipped 1% despite beating Wall Street estimates.

U.S.-listed gold and silver miners tumbled following a more

than 5% drop in bullion prices and an 11% slide in the ‍white

metal. The S&P's Material index dropped 1.3%, leading

declines.

(Reporting by Pranav Kashyap and Twesha Dikshit in Bengaluru;

Editing by Shinjini Ganguli and Arun Koyyur)