Markets took a sharp downturn on Monday as former President Trump intensified criticism of Federal Reserve Chairman Jerome Powell, while global trade negotiations showed little progress.
The Dow Jones Industrial Average plunged over 1,000 points or 2.7%, while the S&P 500 dropped 2.8% and the Nasdaq fell 3.1%.
Major tech companies faced notable declines, with Tesla down 7% and Nvidia dropping 5%. Amazon shed 4%, while AMD and Meta each declined 3%. Industrial giant Caterpillar also fell 3%.
Trump sparked market jitters with a social media post demanding immediate interest rate cuts and calling Powell "Mr. Too Late, a major loser." This followed earlier comments hinting at Powell's potential removal, which White House economic advisor Kevin Hassett indicated was under review.
The markets hit their lowest points of the session following Trump's latest comments. The dollar weakened to a three-year low amid the heightened tensions, while gold prices surged above $3,400 per ounce.
Market analyst Adam Crisafulli noted that investors now face concerns about threats to Fed independence, complicated by potential tariff-driven inflation despite growing economic risks.
Adding to market pressures, global trade negotiations showed no signs of progress. China increased tensions by warning other nations against making deals with the U.S. that could harm Chinese interests.
Since Trump's announcement of new import tariffs on April 2, major indices have recorded substantial losses. The S&P 500 has fallen over 8%, while the Nasdaq and Dow have declined approximately 10% and 9% respectively.
U.S. Bank's senior investment strategist Robert Haworth commented that unclear tariff outcomes create ongoing market uncertainty. He warned that prolonged uncertainty could impact corporate earnings and decision-making, as evidenced in recent earnings reports.