Markets tumble as Trump slams Fed, stokes tariff tensions

U.S. stocks fell across the board Monday after former President Donald Trump intensified attacks on Federal Reserve Chair Jerome Powell and cast fresh uncertainty on trade policy, unnerving investors.

The Dow Jones Industrial Average dropped more than 971 points, or 2.48%, while the S&P 500 and Nasdaq Composite each lost over 2.36% and 2.55%, respectively. The sell-off was led by steep losses in tech, with Tesla and Nvidia down 7% and 6%, and Amazon, AMD, and Meta each falling around 4%.

In a Truth Social post, Trump referred to Powell as “Mr. Too Late, a major loser,” urging the Fed to cut interest rates immediately. 

The former president has floated the idea of removing Powell from his position, raising questions about the central bank’s independence.

The dollar weakened sharply, falling to its lowest level since 2022, while gold surged past $3,400 per ounce for the first time on record. 

Bitcoin (BTC) also jumped before settling in above $87,000.

China VS. USA

Markets are also grappling with heightened trade tensions. China cut back on imports of various U.S. commodities last month, with some items seeing a complete halt in purchases, as tensions in the trade war between the two largest economies escalated.

China issued fresh warnings to countries considering trade deals with the U.S. that could undermine Chinese interests. 

Since Trump unveiled a new round of tariffs on April 2, the S&P 500 has declined by more than 8%, with the Nasdaq and Dow down by nearly 10% and 9%, respectively.

As earnings season ramps up, investors will be closely watching Tesla and Alphabet reports for signs of further cracks in the economy.