US stocks fell sharply Monday as President Trump hurled more social media insults towards Fed Chair Jerome Powell, sparking concerns of Fed independence at a time when markets are still reacting to the president’s whipsawing tariff’s policy.
The S&P 500 (^GSPC) was down over 2%, while the tech-heavy Nasdaq (IXIC) sank 2.6%, leading the way down. The Dow Jones Industrial Average (^DJI) dropped 1.9%, over 700 points.
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As Yahoo Finance’s Josh Schafer wrote in our preview of the week, the stock market remains largely at the mercy of Trump’s tariffs. Different headlines and shifts in narratives have driven big market swings over the past several weeks, with all three indexes down over 5% since Trump’s “Liberation Day” event.
Meanwhile, are grappling with a growing concern: Trump’s bluster around removing Fed Chair Jerome Powell. Trump has repeatedly criticized Powell for allegedly keeping interest rates too high, with his latest insult posted on Monday morning, warning of the economy could slow “unless Mr. Too Late, a major loser, lowers interest rates, NOW.”
Trump’s new focus on Powell comes in the days after the Fed chief delivered a stark warning on the potential effects of tariffs on the economy.
Read more: The latest on Trump’s tariffs
The “sell-America” trade gathered more steam Monday, as the US dollar (DX=F) index eyed its lowest level since 2022 and the benchmark 10-year Treasury yield (^TNX) rose to near 4.4%.
Meanwhile, earnings season continues, with this week looming as pivotal. Two of the “Magnificent Seven” take the spotlight of some 120 S&P 500 companies reporting this week: Elon Musk’s Tesla (TSLA) and Alphabet (GOOG, GOOGL). Both stocks are emblematic of this year’s shift away from the high-flying tech trade of recent years. Alphabet stock is down nearly 20% so far in 2025, while Tesla has lost a whopping 40%.
Tesla shares lost 4% in early trading on Monday. Another Magnificent Seven peer, Nvidia (NVDA), continued a recent slide, down 3% as China looks to domestic alternatives amid new US curbs on Nvidia’s chip sales.
Elsewhere, bitcoin (BTC-USD) surged to its highest level since Trump’s “Liberation Day” tariff announcements. Gold (GC=F) also reached another record, crossing the $3,400 level for the first time.
LIVE 12 updates
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Trump calls for Fed to lower interest rates ‘NOW’
President Trump once again called for the Federal Reserve to lower interest rates in a post on Truth Social on Monday.
He warned of a “SLOWING” of the economy “unless Mr. Too Late, a major loser, lowers interest rates, NOW.”
Last week, reports swirled that Trump has been pursuing possibly firing Fed Chair Jerome Powell after Trump told reporters “If I want him out, he’ll be out of there real fast, believe me.”
But investors have largely argued this wouldn’t be a welcome a sign for markets, with even the possibility of Trump ousting Powell could be another headwind for stocks.
“If the independence of the Fed … comes into question and is actually realized, I think that would further put downward pressure on the confidence that foreign investors have in investing in US dollar assets,” Michael Goosay, Principal Asset Management’s chief investment officer of global fixed income, told Yahoo Finance.
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Why your trip abroad is getting pricier
If you’re planning a trip abroad this summer, the weak US dollar could put a dent in your travel budget.
On Monday, the US dollar (DX-Y.NYB) extended its decline, hitting its lowest point in three years against key global currencies. It’s one of the worst starts to a year for the greenback in decades.
That means American travelers will have less spending power while on grand tours of European capitals this summer.
But a weak US dollar isn’t all bad news. While travelers may feel the pinch, there’s a silver lining for US businesses. Profits made overseas in euros, pounds, and yen are worth more when converted back into dollars, offering a financial boost for companies with international profits.
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Investors pour into European equity funds, flee US
As my colleague Ines Ferré noted below, the “sell America” theme is alive and well in markets amid heightened trade tensions and President Trump’s heavy criticism of Fed Chair Powell.
Data from LSEG Lipper showed US equity funds and bond funds faced selling pressure in the week ended April 16 as tariffs revived recession fears.
Reuters reports:
Read more here.
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Stocks fall as Trump tariffs, criticism against Fed takes center stage
US stocks dropped on Monday as investors assessed the impact of President Trump’s tariff policy and criticism of the Federal Reserve on US assets.
The S&P 500 (^GSPC) was down roughly 1%, while the tech-heavy Nasdaq (^IXIC) fell about 1.4%. The Dow Jones Industrial Average (^DJI) dropped over 200 points.
Tech stocks led the market lower on Monday, with all of the “Magnificent Seven” stocks in the red.
The US dollar (DX=F) index neared its lowest level since 2022, and the benchmark 10-year Treasury yield (^TNX) rose to near 4.4% as the “sell America” theme took center stage following President Trump’s heightened criticism of Fed Chair Jerome Powell for not lowering rates soon enough.
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Nvidia stock falls as China’s Huawei reportedly boosts AI chip production
Yahoo Finance’s Laura Bratton reports:
Read more here.
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Discover, Capital One stocks jump after lenders get key merger approvals
Discover (DFS) and Capital One (COF) stocks continued to gain on Monday morning after two bank regulators approved Capital One’s $35 billion purchase of Discover.
Discover shares jumped more than 7% ahead of the opening bell while Capital One (COF) climbed 4%.
As Yahoo Finance’s David Hollerith notes, Capital One’s purchase of Discover would make it the biggest credit card issuer in the US by loan volume, even bigger than JPMorgan Chase (JPM).
The combined bank is expected to have consolidated assets of approximately $637.8 billion, making it the sixth-largest nationally chartered US bank, according to regulators.
Read more here.
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US stock futures accelerate losses
US stock futures took a leg lower Monday morning as investors await updates on tariffs and threats to Federal Reserve independence reemerged.
S&P 500 futures (ES=F) tumbled 1.4%, while those on the tech-heavy Nasdaq (NQ=F) sank 1.58%. Dow Jones Industrial Average futures (YM=F) dropped 1.2%, over 400 points. Losses have accelerated over the past hour.
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The “Magnificent Seven” tech stocks were all down at least 1% in premarket trading.Nvidia (NVDA) stock fell 3% while Tesla (TSLA), which reports earnings on Tuesday, dropped 4%.
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Good morning. Here’s what’s happening today.
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The stock market may not have fully priced in a recession
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Netflix stock rises as rosy outlook calms investors’ nerves amid tariff fears
Netflix (NFLX) shares climbed 3% in premarket trading on Monday, boosted by a positive annual revenue forecast that eased investor concerns about its ability to weather an economic slowdown amid tariff-related challenges.
Reuters reports:
Read more here
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Bitcoin rebounds as Trump’s push against Powell weakens dollar
Bitcoin (BTC-USD) soared to its highest point since Donald Trump’s “Liberation Day” tariff remarks, as the dollar weakened amid growing concerns over the president’s push to remove Federal Reserve Chairman Jerome Powell.
Bloomberg News reports:
Read more here
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Gold hits record as dollar sags and trade war concerns persist
Gold (GC=F) surged to a record high, driven by a dip in the US dollar, President Trump’s criticism of the Federal Reserve, and ongoing trade war fears, fueling demand for safe-haven assets.
Bloomberg News reports:
Read more here
