US Stocks tumble as Trump criticizes Fed chair Powell; Dow dips 700 Points

US stocks fell sharply on Monday following a new round of criticism from former President Donald Trump towards Federal Reserve Chair Jerome Powell. Trump, in a post on Truth Social, referred to Powell as “Mr. Too Late, a major loser” and reiterated his demand for immediate interest rate cuts.
As of 10:30 a.m. ET, The Dow Jones Industrial Average dropped 735.24 points (-1.88%), closing at 38,406.99, while the S&P 500 fell 109.53 points (-2.07%) to 5,173.17. The Nasdaq also experienced a significant decline, losing 417.11 points (-2.56%) to finish at 15,869.34, at .
The downturn was exacerbated by losses in major technology stocks, with Tesla dropping 7%, Nvidia falling 5%, and Amazon shedding 4%. Advanced Micro Devices and Meta Platforms both saw a decline of 3%, and Caterpillar dropped 3%.
The market’s decline coincided with a further weakening of the US dollar, which hit a three-year low, while gold surged to new heights, rising 3.32% to $3,438.90 per ounce.
Analysts noted that Trump’s comments, combined with growing concerns over inflation risks due to potential tariff-induced price hikes, contributed to investor unease. Adam Crisafulli of Vital Knowledge stated, “Investors are dealing with a fresh source of macro anxiety: Trump’s threats to Fed independence.”, as per CNBC report.
Meanwhile, Asian stock markets were mostly higher on Monday, even as US futures declined and investor sentiment remained cautious ahead of major tech earnings reports and lingering concerns over President Donald Trump’s trade policies.
Futures for the S&P 500 dropped 1.1%, while Dow Jones Industrial Average futures fell 0.9%. Oil prices also declined, with US benchmark crude shedding $1.24 to $62.77 per barrel and Brent crude falling $1.23 to $67.02.
Markets in several countries, including the US, Hong Kong, and Australia, were closed for Easter holidays.
Tensions surrounding the US trade war under President Trump continue to weigh on global markets. Economists have warned that sustained and
Meanwhile, Asian stock markets were mostly higher on Monday, even as US futures declined and investor sentiment remained cautious ahead of major tech earnings reports and lingering concerns over President Donald Trump’s trade policies.
Futures for the S&P 500 dropped 1.1%, while Dow Jones Industrial Average futures fell 0.9%. Oil prices also declined, with US benchmark crude shedding $1.24 to $62.77 per barrel and Brent crude falling $1.23 to $67.02.
Markets in several countries, including the US, Hong Kong, and Australia, were closed for Easter holidays.
Tensions surrounding the US trade war under President Trump continue to weigh on global markets. Economists have warned that sustained and aggressive tariff measures could push the global economy toward a recession. Additionally, a weakening US dollar—falling to 140.76 yen, its lowest since September—has raised concerns about a potential erosion in investor confidence in the US as a safe-haven destination.
“The reputational hit to the US brand is real, and it’s not fading quietly into the next news cycle,” said Stephen Innes of SPI Asset Management in a note.
The euro also climbed to $1.1473 from $1.1404.
Investor focus this week is on the earnings season for the “Magnificent Seven” tech companies: Apple, Microsoft, Nvidia, Amazon, Tesla, Google parent Alphabet, and Facebook parent Meta. As of April 20, their combined market value had fallen by $3.8 trillion, or 22%, since Trump’s inauguration.
Tesla is set to report its full first-quarter financials on Tuesday, following an earlier disclosure of a 13% year-over-year drop in vehicle deliveries. The electric carmaker has significant production operations in Shanghai.
In Japan, the Nikkei 225 fell 1.3% to 34,279.92, pressured by uncertainty over trade negotiations with the US Japanese automakers face a 25% tariff on auto and parts exports to the US
China’s Shanghai Composite rose 0.5% to 3,291.73, and South Korea’s Kospi edged up 0.2% to 2,488.42. India’s Sensex climbed 1.1%, while Taiwan’s Taiex slipped 1.5%.
Bitcoin gained nearly 3.5% to around $87,580.
In the bond market, the yield on the 10-year US Treasury note rose to 4.36% from 4.32% on Thursday. US stock markets were closed Friday; on Thursday, the Dow lost 1.3%, the S&P 500 edged up 0.1%, and the Nasdaq fell 0.1%.