Stocks and bonds plummeted sharply on Monday, led by a sell-off in US dollar, as President Donald Trump continued to attack Federal Reserve Chairman Jerome Powell. The Dow Jones Industrial Average fell 2.5%, the S&P 500 lost 2.7% and the Nasdaq Composite dropped 2.6%. Bond yields rose, with the 10-year Treasury yield increasing by 7 basis points.
Trump’s attacks on Powell have been ongoing for months, but escalated on Monday when he called him a “loser” and demanded that interest rates be lowered. This prompted investors to “sell America,” selling US assets in favor of foreign markets.
Analysts warn that Trump’s actions could introduce uncertainty into the market and undermine trust in monetary policy decisions. The Fed’s independence is under threat, and attempts to politicize its decisions could lead to a move away from US dollar hegemony.
The sell-off was fueled by concerns over trade policies, including tariffs on China, which soared even higher after Trump announced sweeping trade duties earlier this year. Major tech stocks like Tesla and Nvidia were particularly hard hit, with losses of 7% and 6%, respectively.
Bonds have also been affected, with prices falling in recent weeks amid uncertainty around US growth and deep trade tensions. The move goes against earlier expectations that tariffs would support the currency level.
The plunge in the dollar has led to a surge in gold, which touched a new record high on Monday, while cryptocurrencies like bitcoin rose to $88,000 for the first time since March.
Source: https://www.businessinsider.com/stock-market-today-selloff-sell-america-trump-fed-independence-bonds-2025-4