It was a rough start to the week on Wall Street, with major indexes plunging on Monday after President Donald Trump intensified his attacks on Federal Reserve Chair Jerome Powell.
The Dow Jones Industrial Average dropped nearly 972 points, closing at 38,170. That’s a fall of almost 2.5%. The S&P 500 lost 2.4%, while the Nasdaq Composite sank more than 2.5%, finishing just above 15,870.
Tech stocks take the brunt
Once again, the “Magnificent Seven” were at the centre of the sell-off. Tesla plunged 5.8% ahead of its earnings report. Nvidia slid more than 4%. Meta, Amazon and Apple all lost more than 3% as rising political tensions added to existing concerns over tariffs and earnings growth.
Caterpillar, often seen as a bellwether for global trade, fell 2.8%.
Trump’s Fed outburst spooks investors
Markets were already on edge when President Trump posted another broadside against Fed Chair Powell, calling him “Mr. Too Late” and demanding an immediate interest rate cut. The president also again raised the possibility of removing Powell — a move that would severely undermine the Fed’s independence.
Those comments sent the US dollar tumbling to a three-year low, while gold soared past US$3,400 an ounce, as traders sought safe-haven assets.
Trade tensions simmer
The selloff was compounded by a lack of progress on global trade. China warned countries not to “appease” the US by signing deals that hurt Beijing — escalating fears of a broader trade realignment. Since Trump announced sweeping tariffs on April 2, the Dow is down nearly 10%, and the S&P 500 is off by 9%.
Commodities and the dollar
WTI crude is trading 2.01% lower at US $63.38 a barrel.
Spot gold is trading flat at US$3,424.25 an ounce.
One Australian dollar is buying 64.16 US cents.
