Big tech stocks dropped in premarket trading and the dollar and bond yields shot up ​on Friday after U.S. President Donald Trump said he has firmed up his choice to lead the Federal Reserve, with reports zeroing in on ‌Kevin Warsh as the likely pick.

AMD fell 3%; Meta, Palantir, TSMC, Broadcom, Alphabet, and Oracle fell 2%; while Tesla rose 1%.

While Warsh, a former Fed governor, is seen as an advocate of lower interest rates, he is also considered to be one of the less radical choices among the various names that have been raised and is perhaps more cautious on heavy monetary stimulus than others.

S&P 500 e-mini futures slid 0.9%, Nasdaq e-mini futures ‌were off 1.1% and precious metals plunged, after Reuters reported that Warsh visited the White House for a meeting with Trump ​on Thursday, citing a source familiar with the matter.

Bloomberg News also reported that the Trump administration was preparing to nominate Warsh as the next Fed chair.

Warsh "is on record as saying he prefers lower rates," said Damien Boey, a portfolio strategist at Wilson Asset Management in Sydney. "But the trade-off that he makes with lower ‍rates is that he wants the Fed to have a smaller balance sheet."

"The markets are reacting as if thinking: 'What would the world look like with a smaller Fed balance sheet?'"

On prediction market site Polymarket, the implied probability of contracts betting that Trump will nominate Warsh to lead the central bank surged to 94% from 35% earlier in the ⁠day.