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Stocks fell again on Monday as President Donald Trump ramped up his attacks on Federal Reserve Chair Jerome Powell, raising questions about the central bank’s independence, while traders received little signs of progress on global trade talks.
The Dow Jones Industrials collapsed 971.82 points, or 2.5%, to 38,170.41.
The S&P index slid 124.50 points, or 2.4%, to 5,158.20.
The NASDAQ Composite sank 415.55 points, or 2.6%, to 15,870.90.
“Magnificent Seven” tech titans dragged the major indexes lower, with Tesla down 7% and Nvidia losing 6%. Amazon shed 4%, as did Advanced Micro Devices and Meta Platforms. Equipment manufacturer Caterpillar declined 3%.
In a Truth Social post, Trump claimed that the economy would slow unless Powell — who he referred to as “Mr. Too Late, a major loser” — lowered interest rates immediately. This follows another post last week in which Trump also called for the Fed to lower rates, even hinting at Powell’s “termination” — something White House economic advisor Kevin Hassett said the president’s team was studying.
Stocks fell to their session lows after Trump’s post on Monday. The dollar was also under pressure, hitting a three-year low as the threats ramped up. Gold, meanwhile, soared to record highs above $3,400 per ounce.
The S&P 500 is down more than 8% since since April 2, when Trump announced a raft of levies on imports from other countries. The NASDAQ has lost nearly 10% in that time, and the Dow has fallen 9%.
Prices for the 10-year Treasury were down Monday, raising yields to 4.41% from Thursday’s 4.33%. Treasury prices and yields in opposite directions.
Oil prices tumbled $1.16 to $63.52 U.S. a barrel.
Prices for gold popped $105.20 to $3,427.60 U.S.
