President Trump may finally be one step closer to kicking Jerome Powell out of the hallowed halls of the Federal Reserve and replacing him with his own pick, Kevin Warsh.

The TLDR on Warsh: He’s a Wall Street veteran who previously served as a Fed governor from 2006 to 2011. Since then, his net worth has skyrocketed to over $100 million, sparking concerns about his conflict of interests if he leads the central bank.

Today, members of the Senate Banking Committee grilled Warsh during his confirmation hearing. They asked about his approach to monetary policy, fealty to President Trump, and of course, picked his brain about the Alix Earle vs Alex Cooper fued AI. Here’s a highlight reel of the juiciest moments:

• Warsh told skeptical Democrats that Trump never “asked me to predetermine, commit, fix, decide on any interest rate decision in any of our discussions, nor would I ever agree to do so.” The senators didn’t look convinced, to put it mildly.
• Senator John Kennedy of Louisiana questioned Warsh about a Wall Street Journal op-ed he penned on AI being a disinflationary force. “That is not how I would characterize the story on AI,” he said. “What I have said is that this is the most disruptive moment in modern economic history in the US and the world.”
• When questioned about his personal fortune, Warsh said he’ll convert his assets into “something like cash.”

Can Warsh take the heat?

Today is just the beginning of what will likely be a chaotic confirmation process. Keep in mind, Senator Thom Tillis (a Republican) has vowed to block Warsh’s confirmation until the Justice Department’s investigation into Powell is dropped. And Powell himself has said that he’ll remain in charge if Warsh isn’t approved as interim Chair, which is sure to garner some commentary from the White House.

No matter who’s in charge, Wall Street still expects rates to be cut as the inflationary pressures of the war in Iran seem set to recede. “Despite the uncertainty surrounding the Fed leadership transition, we believe the US central bank remains on track for further easing later this year,” explained UBS Global Head of Equities Ulrike Hoffmann-Burchardi in a note today.

Senator Kevin Cramer of North Dakota best summarized the confirmation hearing when he told Warsh, “I’m curious as to why you even wanted to do this.” Given all the pressure and perils Warsh will face if confirmed, we were wondering the same thing.—LB

🟢 What’s up

• Amazon rose 0.66% after expanding its AI partnership with Anthropic. The deal also lifted key suppliers to the buildout, with Marvell Technology climbing 2.35% and Astera Labs rising 9.2%.
• Spirit Airlines surged 107.41% on reports that the federal government might support the struggling airline, easing fears of a potential liquidation following its second bankruptcy in under a year.
• D.R. Horton gained 5.78% after posting stronger-than-expected earnings and signaling better home sales margins ahead, pointing to resilience in the housing market.
• Infrastructure and agriculture company Valmont Industries surged 11.93% on a first-quarter beat, driven by strong demand in its North American utility segment.
• Halliburton climbed 4.01% as robust growth in Latin America and Europe helped offset weaker Middle East demand.
• UnitedHealth Group added 6.96% after beating on both revenue and EPS while raising its 2026 profit outlook, citing improved cost controls and operational efficiency.

What’s down

• JetBlue Airways declined 5.04% following backlash over a now-deleted social media post suggesting travelers use incognito mode for cheaper fares, fueling concerns around pricing practices.
• Northrop Grumman fell 6.98% despite solid earnings, as elevated expectations across the defense sector left little room for upside surprises.
• AXT dropped 4.81% after announcing a stock offering alongside disappointing revenue guidance.
• Consumer credit reporting company Equifax slipped 3.04% even after an earnings beat, with higher interest rates and weak mortgage activity clouding its forward outlook.
• Tractor Supply stumbled 11.69% thanks to a miss on both revenue and earnings expectations, as well as genuinely terrible same-store sales growth.

If you’re not watching Kevin Warsh be bombarded by questions with all the enthusiasm of a degenerate sports better glued to March Madness, you’re clearly not a bond trader.

The war with Iran has led stocks around by the nose since the beginning of March, and it’s no different for fixed income. Oil prices jumped after the fighting started, increasing the likelihood of higher inflation and reducing the chances of a rate cut from the Fed. That in turn sent US Treasuries tumbling and yields soaring. Markets have since priced in peace, pushing the S&P 500 and Nasdaq to new highs, but Treasuries haven’t gotten the memo: yields remain higher than they were at the end of February, before the war began.

That could all change if Warsh gets to sit in the Fed Chair. If President Trump’s nominee seems focused on tackling war-driven inflation first and keeping rates steady, it’ll be a serious problem for short-term Treasuries, which are more rate-sensitive than their longer-term counterparts. But if Warsh seems likely to bow to pressure from the White House and cut rates ASAP, it’ll be a huge boon for short-dated bonds.

Warsh is walking a tightrope on Capitol Hill, and for now, it may be best for bond traders to wait and see how the potential Fed head plays his cards before making any bets.—MR

After 15 years at the helm, Tim Cook is stepping down as CEO of Apple, capping a tenure in which he took the tech company’s market cap from $297 billion to $4 trillion. Cook will transition to executive chairman, while hardware chief John Ternus will take the helm on September 1.

Ternus brings more than two decades of experience at Apple, during which time he’s helped build pretty much every product you’ve owned at some point—iPhone, iPad, Mac, and beyond. He has also been central to improving product durability and advancing Apple’s materials and design capabilities.

Wall Street takes a bite

This move makes sense: Ternus is a product guy through and through, which fits neatly with Apple’s hardware-first DNA. But leadership changes at the biggest companies in the market are rare, and news like this can often trigger knee-jerk reactions—so the fact that the company is announcing it now, ahead of its April 30 earnings report, suggests management is confident in what’s coming next.

Wall Street seems to agree:

• Bank of America maintains its Buy rating and views the shift as a positive signal for Apple’s long-term direction. BofA thinks it marks the start of a new product cycle, with a stronger push into AI-driven devices, wearables, and smart home tech. And with 2027 marking the iPhone’s 20th anniversary, the bank sees potential for a major product year that could anchor Apple’s next phase of growth.
• Morgan Stanley remains Overweight and emphasizes that this move is a transition, not a transformation. To that end, the firm expects little near-term change given Apple’s strong fundamentals, and draws parallels to the Jobs-to-Cook transition, when performance stayed resilient and the stock went on to significantly outperform over the following 12 months. Longer term, it sees potential shifts in areas like AI, new markets, and strategy under new leadership, which could drive renewed investor optimism.
• Janus Henderson echoes those views, and argues that much of the upside will come from AI execution. More specifically, an advanced, agentic version of Siri could help reignite iPhone demand and reshape perceptions that Apple is falling behind in the space.

All in all, while Apple faces a familiar mix of pressures—from softer consumer spending to rising memory costs—the consensus is that its foundation remains strong, and John Ternus is well-positioned to define the company’s next chapter.—SY

• Major banks are rolling out programs to give pensions, endowments, and family offices access to quant trading strategies.
• McDonald’s is rolling out its $3 menu starting today—and Wall Street says it’s the key to the chain’s comeback.
• Suspend your disbelief for a moment: JPMorgan says the S&P 500 could reach 8,000 by the end of this year.
• Electricity bills are skyrocketing in Hawaii and Alaska, which are bearing the brunt of the energy crisis from the Iran war.
• A growing number of high-profile crypto hacks is stifling growth in the sector, according to Jefferies.
• Starbucks spent $100 million on its luxe Nashville office. The problem? Nobody wants to move there.

Economic reports: Nothing of note

Earnings announcements: Tesla is the first member of the Mag 7 to report, and will be joined by Lam Research, GE Vernova, Philip Morris, IBM, Texas Instruments, AT&T, Boeing, CME, ServiceNow, Boston Scientific, Moody’s, CSX, Kinder Morgan, and Southwest Airlines

Everything else: Tomorrow is Earth Day, so go make your kids plant a tree and lean heavily into metaphors about personal growth.