Market Analysis: Kevin Warsh Confirmed as Fed Chairman
By Elior Manier | May 13, 2026
Overview
The Senate has confirmed Kevin Warsh as the new Chairman of the Federal Reserve, succeeding Jerome Powell. Warsh, who has not been on the Fed board since 2011, has maintained a close connection to finance as a partner at a leading hedge fund. The market's reaction to his confirmation has been mixed, with the Nasdaq and S&P 500 reaching new all-time highs, while the Dow Jones continues to face challenges.
Market Reactions
Following Warsh's confirmation, US stock benchmarks showed varied responses. The tech-heavy Nasdaq surged to new highs, driven by strong momentum in growth stocks. Conversely, the Dow Jones Industrial Average struggled as investors assessed how Warsh's leadership might influence monetary policy amid ongoing inflation and global economic challenges.
Technical Analysis
Dow Jones Industrial Average
The Dow Jones is currently consolidating between 49,500 and 49,800. A breakout above 49,800 could signal further gains, while a drop below 49,500 may indicate bearish sentiment.
- Resistance Levels: 49,780, 49,900-50,000, 50,400-50,500 (All-Time Highs: 50,544)
- Support Levels: 49,500, 49,000-49,100, 48,500, 48,000
Nasdaq Composite
The Nasdaq has reached record highs but is showing signs of stalling. A confirmation of further upside requires a break above 29,600, while a fall below the 50-Hour MA at 29,160 could lead to bearish conditions.
- Resistance Levels: 29,485, 29,600
- Support Levels: 29,160, 28,500, 28,000
S&P 500
The S&P 500 is performing strongly, remaining above its bull channel's mid-line at 7,375, which supports the continuation of its upward trend.
- Resistance Levels: 7,390-7,400, 7,415, 7,480
- Support Levels: 7,250-7,260, 7,230, 7,100
Conclusion
The market's mixed reaction to Kevin Warsh's confirmation as Fed Chairman reflects uncertainty about future monetary policy. Investors are advised to monitor upcoming economic indicators and the Federal Open Market Committee (FOMC) meeting scheduled for June 17, which will provide further insights into Warsh's approach to managing inflation and economic growth.