US stocks ended the day sharply lower on Monday, with the Dow falling 972 points or 2.48%. The broader S&P 500 also fell 2.36%, while the tech-heavy Nasdaq Composite slid 2.55%. The sell-off was widespread, with nearly every company in the Dow and S&P 500 closing lower.
The US dollar index plummeted over 1% to its lowest level in more than three years, amid concerns about President Donald Trump’s ongoing efforts to oust Federal Reserve Chair Jerome Powell. Trump has repeatedly criticized Powell for not cutting interest rates, a complaint he has made multiple times against the Fed chair.
Powell had warned of potential economic consequences of Trump’s tariff agenda last week, saying that tariffs were “unlike anything in modern history”. The European Central Bank cut its benchmark interest rate on Friday, which may have further exacerbated concerns about Powell’s job security.
Analysts warn that markets are reacting negatively to Trump’s pressure on Powell, with many experts saying the president does not have the power to fire the Fed chief due to policy differences. Despite this, Trump has made clear he is willing to break with norms and precedent in his pursuit of monetary policy control.
As a result, investors are seeking safe havens like US government bonds and gold, which surged over 3% on Monday and hit a fresh record high above $3,400 a troy ounce. The dollar has broadly weakened this year, potentially signaling waning confidence in the US economy.
The Fed’s board of governors is scheduled to meet in May to determine its next decision on interest rates. Analysts expect the Fed to hold rates steady, but the uncertainty surrounding Powell’s future hangs over markets like a cloud. With the first-quarter earnings season approaching, investors will be watching for chief executives’ guidance and forecasts amidst heightened tariff uncertainty.
Source: https://edition.cnn.com/2025/04/21/investing/us-stock-market/index.html