NEW YORK, New York - U.S. stocks fell Friday after the release of a strong inflation figure which hammered stocks but boosted the dollar.

The Producer Price Index for final demand increased 0.5 percent in December. Prices for final demand services advanced 0.7 percent, and the index for final demand goods was unchanged. On an unadjusted basis, prices for final demand rose 3.0 percent in 2025, the Bureau of Labor Statics said in a report Friday.

The other big news Friday, positive for stocks and the U.S. dollar, was the nomination by President Trump of former Federal Reserve Governor Kevin Warsh as the new chair of the Fed, to replace Jerome Powell when his term ends in May. The announcement by Trump on his social media platform Truth Social on Friday was welcomed by investors and traders.

Silver futures plummeted 31.4 percent to settle at $78.53, marking its worst day since March 1980.

U.S. indices retreated but with modest declines. The Standard and Poor's 500 fell 29.98 points, a drop of 0.43 percent, closing at 6,939.03.

The Dow Jones Industrial Average declined 179.09 points, or 0.36 percent, settling at 48,892.47.

Technology stocks bore the brunt of the selling pressure in the U.S., dragging the NASDAQ Composite down 223.30 points, or 0.94 percent, to 23,461.82.

The day's trading created a stark performance gap between the two major North American markets. While U.S. indices saw routine pullbacks, the TSX's steep decline suggests investors are reacting strongly to factors uniquely impacting Canadian equities, potentially including volatile commodity prices or domestic economic data. The divergence underscores the heightened sensitivity and sector-specific risks within the Canadian market compared to its larger U.S. counterpart.

U.S. Dollar Surges Against Major Currencies in Thursday Trading, Buoyed on News of New Fed chair nomination

The U.S. dollar demonstrated broad strength on foreign exchange markets on Thursday, climbing against most major rivals as investors reassessed global interest rate outlooks with the nomination of Kevin Warsh to chair the Fed. While the dollar strengthened, gold fel, sharply.  Silver futures tumbled an incredible 31.4 percent to settle at $78.53, marking its worst day in thirty five years.

The greenback posted significant gains, with one of the largest moves seen against the Swiss franc. The USD/CHF pair rose 1.10 percent to trade at 0.7724. The dollar also advanced sharply against the Japanese yen, with USD/JPY jumping 1.02 percent to reach 154.63, a fresh multi-decade high.

The commodity-linked Canadian dollar weakened, as USDCAD increased 0.82 percent to the 1.3600 level.

European currencies faced notable selling pressure. The euro fell against the dollar, with EUR/USD declining 0.94 percent to 1.1857. The British pound also retreated, as GBP/USD dropped 0.85 percent to 1.3691.

The risk-sensitive Australian and New Zealand dollars were among the session's worst performers. The AUD/USD pair tumbled 1.13 percent to 0.6968, while NZD/USD fell 0.83 percent to 0.6027.

The day's moves reflected a strong bid for the U.S. dollar, driven by shifting expectations for monetary policy differentials. The dollar's surge against the yen, in particular, will be closely watched by officials in Tokyo for potential intervention signals. The overall strength suggests a cautious mood among global investors, favoring the dollar's relative safe-haven status.

Global Stock Markets Diverge on Thursday; Europe Rallies While Asia Retreats

Financial markets delivered a split performance on Thursday, with European indices posting solid gains while major Asian benchmarks closed firmly in negative territory. The standout loser on the day however was the Canadian stock market.

In a broad sell-off, the Standard and Poor's /TSX Composite Index experienced a significant downturn, plummeting 1,092.61 points, or 3.31 percent, to finish the session at 31,923.52. The heavy loss highlighted particular weakness in the resource-heavy Canadian market, and a widening dispute Between Ottawa and the Trump administration.

London's FTSE 100 added 37.36 points, a gain of 0.37 percent, settling at 10,209.12..

European indices led the advancers, buoyed by positive economic sentiment. Germany's DAX P was a standout, climbing 248.74 points, or 1.02 percent, to close at 24,558.20. The broader EURO STOXX 50 I surged 1.22 percent, gaining 71.65 points to finish at 5,963.60.

France's CAC 40 rose 0.81 percent to 8,137.03, and The Euronext 100 Index advanced 0.96 percent to 1,775.24, and Belgium's BEL 20 edged up 0.38 percent to 5,393.72.

In Asia, markets faced broad selling pressure. Hong Kong's Hang Seng Index fell sharply, dropping 580.99 points or 2.08 percent to 27,387.11. In Japan the Nikkei 225 saw a minimal decline, easing just 0.10 percent to 53,322.85.

Taiwan's TWSE Capitalized Weighted Stock Index also saw significant losses, declining 1.45 percent to 32,063.75.

Australia's S&P/ASX 200 dipped 0.65 percent to 8,869.10, and the broader All Ordinaries index fell 0.78 percent to 9,164.80.

Singapore's STI Index lost 0.51 percent, closing at 4,905.13. India's S&P BSE Sensex retreated 0.36 percent to 82,269.78, and Malaysia's FTSE Bursa Malaysia KLCI shed 0.89 percent to 1,740.88.

Other Asian markets offered a brighter picture. Indonesia's IDX Composite jumped 1.18 percent to 8,329.61, and New Zealand's S&P/NZX 50 INDEX GROSS rose 0.56 percent to 13,423.18.

South Korea's KOSPI Composite Index was nearly flat, inching up a mere 0.06 percent to 5,224.36.

The day's trading highlighted a clear divergence in regional momentum, with European investors embracing risk while their Asian counterparts showed caution.

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

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