U.S. stocks Plunge Amid Trump’s Fed Criticism and Trade Uncertainty
U.S. stocks took a hit on Monday. Former President donald Trump’s harsh words about Fed Chair jerome Powell and trade policy spooked investors. The Dow jones fell by over 971 points, or 2.48%. The S&P 500 and Nasdaq also dropped by 2.36% and 2.55%, respectively.
Tech stocks where hit the hardest. Tesla and Nvidia lost 7% and 6%, while Amazon, AMD, and Meta each fell by about 4%. Trump called Powell “Mr. Too Late” on Truth Social, urging the Fed to cut interest rates. He even suggested removing Powell from his role, raising doubts about the Fed’s independence.
The dollar weakened, hitting its lowest level since 2022. Gold prices soared past $3,400 per ounce, a record high. bitcoin also rose, settling above $87,000.
Trade tensions between China and the U.S. added to the market’s woes. China reduced imports of U.S.goods, with some items seeing a complete halt. The contry warned others against trade deals that could harm Chinese interests.
Since Trump announced new tariffs on April 2, the S&P 500 has dropped by over 8%. The Nasdaq and dow are down by nearly 10% and 9%, respectively. As earnings season begins, investors will closely watch reports from Tesla and Alphabet for economic clues.
