Wall Street Drops Sharply After Trump’s Criticism of Fed Chair
Losses among the “Magnificent Seven”—the largest growth-focused tech companies—had the greatest impact on the Nasdaq.
Quick overview
- Wall Street's major indexes experienced significant declines, with the Dow Jones falling 2.48% and the Nasdaq dropping 2.55%.
- President Trump intensified his criticism of Federal Reserve Chair Jerome Powell, raising concerns about the Fed's independence.
- Tech giants, particularly the 'Magnificent Seven', faced notable losses, impacting the Nasdaq index significantly.
- Trade tensions between the U.S. and China escalated, contributing to market anxiety and fears of a tariff war.
Wall Street’s three major indexes suffered steep losses on Monday, as markets reacted nervously to a fresh wave of attacks from U.S. President Donald Trump against Federal Reserve Chair Jerome Powell.
The Dow Jones Industrial Average, which tracks 30 blue-chip stocks, fell 2.48% to 38,170.41. The S&P 500, which includes the most valuable U.S. companies, lost 2.36% to 5,158.20, while the tech-heavy Nasdaq Composite dropped 2.55% to 15,870.90.
Trump intensified his criticism of Powell on Monday via a post on his Truth Social platform, saying that the U.S. economy is heading for a slowdown “unless Mr. Too Late, a big loser, cuts interest rates NOW.”
Powell, who has led the central bank since 2018, is widely regarded for maintaining a steady hand through complex scenarios such as the pandemic and recent inflationary pressures. Trump’s renewed attacks have sparked serious concerns about the Fed’s autonomy.
Losses among the “Magnificent Seven”—the largest growth-focused tech companies—had the greatest impact on the Nasdaq. Apple, the world’s most valuable company, slid nearly 2%, while Nvidia, the AI powerhouse, dropped 4.51%.
Meanwhile, concerns over U.S.-China trade tensions deepened after Beijing warned against making deals with the U.S. at China’s expense, heightening fears of an escalating tariff war between the world’s two largest economies.
Wall Street’s Most Notable Stock Moves
Alibaba Group’s research arm, Damo Academy, saw its AI-powered pancreatic cancer detection tool receive an “innovative device” designation from the U.S. Food and Drug Administration (FDA), according to the South China Morning Post. The label paves the way for an expedited regulatory approval process in the U.S. However, Alibaba shares still dropped 1.8%.
On the upside, Netflix Inc. shares rose 2.6% after executives expressed confidence in the company’s ability to weather the economic fallout from Trump’s tariffs.
Top Gainers and Losers of the Day
Biggest Gainers:
- MicroAlgo (+75%)
- Forge Global (+42%)
- Highest Perform (+26%)
- Techno Pro (+11.3%)
- Avidity Biosciences (+8.6%)
Biggest Decliners:
- MP Materials (-11.7%)
- Universal Health Services (-11%)
- AST SpaceMobile (-11%)
- ADMA Biologics (-9.7%)
- Tenet Healthcare (-9.5%)
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals